Channel Cost Calculator

How this tool works

Enter your room rate, booking details and the costs associated with each channel. The tool calculates the true net revenue you receive from a direct booking versus an OTA booking, and shows you the annual cost of using each channel.

Booking Details
For annual projection

✔ Direct Booking

Typically 1.4–2.9% for credit cards
e.g. booking system fee
e.g. affiliate / voucher codes

● OTA Booking

Booking.com: 15–18% · Expedia: 15–25%
Any per-booking charge from the OTA

Why Channel Costs Matter

OTAs like Booking.com and Expedia drive significant volume but at a cost. A 15% commission on a £120 room equates to £18 per night — or over £6,500 per year on just one room booking 365 nights. Understanding the true net revenue from each channel is essential for pricing and distribution strategy.

OTA Commission

Commission is charged as a percentage of the gross room rate. Booking.com typically charges 15–18% depending on your visibility programme participation. Expedia rates vary from 15–25%. Some OTAs also charge per-booking fees. Check your contract for your exact rates.

Card Processing Fees — Direct Bookings

When you take a direct booking, your payment processor charges a percentage of the transaction. Typical rates: debit cards 0.2–0.5%, credit cards 1.4–2.9%, American Express 2.5–3.5%. Your actual rate depends on your processor and monthly volume.

Effective OTA Cost %

This is the total cost of using the OTA expressed as a percentage of gross revenue, including commission and fixed fees. It gives you a single comparable figure across different channels.

Annual Revenue Impact

The annual figures show you the cumulative cost of routing bookings through an OTA versus direct. This is the figure to use when evaluating investment in direct booking tools, website improvements or Google Hotel Ads spend — any of which may cost less than the OTA commission you are currently paying.

Driving Direct Bookings

The most effective ways to shift bookings from OTA to direct include: a best-rate guarantee on your own website, a seamless online booking engine, Google Hotel Ads, email capture at check-in, and loyalty incentives such as a complimentary upgrade or late checkout for direct bookers.

This calculator provides estimates based on the figures you enter. OTA commission rates, card processing fees and booking system charges vary by provider and contract. Always confirm your actual rates with your channel manager, payment processor and OTA account manager. JWBIZ Ltd accepts no liability for commercial decisions made on the basis of this tool.