OTA Commission Calculator for Hotels
See what you really earn from every OTA booking after commission, GST and deductions — and the rate you need to list to protect your margin.
How much does an OTA booking really cost?
The commission percentage on your contract is only part of the cost. In India, GST is charged on the OTA's commission, and some statements include payment-collection charges or tax deductions. This OTA commission calculator adds them together so you can see the net amount you actually receive per room night — and the rate you need to list to protect your margin.
Example
A room listed at ₹4,000 with an 18% commission costs ₹720 in commission plus ₹129.60 GST on that commission. The hotel receives about ₹3,150 — an effective OTA cost of roughly 21% instead of 18%. On 300 room nights a month, that is about ₹2.5 lakh paid to the OTA.
How to reduce your OTA commission cost
- Grow direct bookings with a fast booking engine and a best-rate guarantee.
- Join OTA programmes only when the extra visibility pays for the higher commission — see our OTA commission guide.
- Keep rate parity so guests have no reason to book elsewhere.
- Use a channel manager to avoid overbookings and manual errors.
Commission rates, taxes and deductions vary by OTA, contract and location. Use the figures from your own OTA statements for exact results.
Frequently asked questions
What is the typical OTA commission for hotels in India?
Commission on major OTAs commonly falls between about 15% and 25% of the room rate, depending on the OTA, the hotel's contract and any visibility programmes it has joined. Check your own contract for the exact rate.
Is GST charged on OTA commission?
Yes. In India, the OTA's commission is a service to the hotel and GST is generally charged on it, which raises the real cost of each booking above the headline commission percentage.
How do I calculate the rate to list on an OTA?
Divide the net amount you want to receive by one minus the total deduction rate. For example, to receive ₹3,200 with an 18% commission plus 18% GST on it, list at roughly ₹3,200 ÷ (1 − 0.2124) ≈ ₹4,063.
Should the OTA rate be higher than my direct rate?
Most hotels keep rate parity across channels and win direct bookings with added value instead, such as free breakfast or flexible cancellation. Check your OTA contracts before changing rates.
Want a revenue expert to check your numbers?
Get a free OTA, pricing and reputation audit from Revgrow360 — no obligation.