OTA vs Direct Booking Value Calculator

Work out ota vs direct booking value instantly with clear inputs, formula shown and shareable results.

About OTA vs Direct Booking Value Calculator

The comparison is net revenue after channel cost, not gross rate. The most useful output is the maximum you can spend acquiring a direct booking before it becomes worse than paying commission — which is the budget ceiling for your direct marketing.

Formulas

OTA net revenue

OTA net = Rate x (1 - Commission %)

Direct net revenue

Direct net = Rate x (1 - Direct discount %) - Acquisition cost

Maximum direct spend

Maximum = Rate x (1 - Direct discount %) - OTA net revenue

Worked example

With the default values below, OTA vs Direct Booking Value Calculator returns Net revenue from a direct booking of $7,700.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Room rate: 9,000
Online travel agent commission: 18
Direct marketing cost per booking: 850
Discount offered on direct bookings: 5

Results

Net revenue from a direct booking: $7,700.00
Net revenue from an OTA booking: $7,380.00
Advantage of the direct channel: $320.00
Maximum you can spend on direct acquisition: $1,170.00

Step by step

1Values used
2OTA net revenue
3Direct net revenue
4Maximum direct spend
5Net revenue from a direct booking= 7,700.00
6Net revenue from an OTA booking= 7,380.00
7Advantage of the direct channel= 320.00
8Maximum you can spend on direct acquisition= 1,170.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should I discount direct bookings?

A modest direct discount plus a perk usually converts better than price alone, and it stays well inside the commission you avoid.

Does the OTA still add value?

Yes, for reach into markets you cannot address directly. The goal is channel mix, not elimination.