Channel Mix & Distribution Cost Calculator
See what each booking channel costs per month, your net ADR, and how much shifting bookings to direct would save.
Every channel has a price
A room sold through an OTA, a travel agent or your own website does not earn the same. OTAs charge commission on each booking, travel agents take a commission or a net-rate margin, and even direct bookings carry payment gateway fees and marketing cost. Channel mix analysis shows what each channel really costs you per month and what your net ADR is after distribution.
Do not forget GST on commission
OTAs and most agents charge 18% GST on their commission. Hotels in the 5% room slab (tariff up to ₹7,500 per night) do not get input tax credit, so that GST is a real extra cost. Hotels charging 18% on rooms above ₹7,500 can usually claim it back. Choose the right option in the calculator, and confirm your position with your CA.
Worked example
A hotel sells 700 room nights a month at ₹3,500 ADR. 60% come from OTAs at 18% commission, 15% from travel agents at 10%, 15% direct with a 3% gateway fee and 10% walk-in. With GST on commission as a cost, monthly distribution cost is about ₹3,68,600, roughly 15% of room revenue, and net ADR falls to about ₹2,973. Moving 10% of room nights from OTAs to direct saves around ₹43,400 a month.
How to improve your mix
- Make direct easy. A fast mobile booking engine, WhatsApp booking and a small direct-only benefit (breakfast, late checkout) convert guests who already know you.
- Keep rate parity. Guests compare prices; check with the rate parity checker.
- Win repeat guests. A guest who first came through an OTA can book direct next time if you ask.
- Use OTAs for reach. They bring guests you would not otherwise reach; the aim is balance, not zero OTA business.
For one channel at a time, try the OTA commission calculator and the direct booking savings calculator.
Frequently asked questions
What is a good channel mix for an Indian hotel?
There is no single right mix. It depends on location, category and how strong your brand and repeat business are. Track your own mix monthly and aim to grow direct and repeat bookings steadily.
Is GST on OTA commission a cost for hotels?
For hotels charging 5% GST on rooms without input tax credit, the 18% GST on commission cannot be claimed back, so it is an extra cost. Hotels in the 18% slab can usually claim it. Check with your CA.
What does net ADR mean?
Net ADR is the average room rate left after paying commission and distribution costs. It shows what the hotel actually keeps from each room night sold.
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