Work out channel commission cost instantly with clear inputs, formula shown and shareable results.
Channel cost is commission plus payment processing, and both come off the top before any operating cost. At a combined 19% the channel takes almost a fifth of revenue, which is why the cost of acquiring the same booking directly is the relevant comparison.
Cost per booking
Cost = Booking value x (Commission % + Payment processing %)
Effective rate
Effective % = Commission % + Payment processing %
Rates are largely tiered by volume and visibility programme, so the negotiation is usually about placement rather than the base rate.
The tendency for online travel agent listings to drive direct bookings too, which partly offsets the commission cost and is hard to measure.