How to calculate net revenue after OTA commission
More than 30 years in hotel rooms division, from hostels to five-star chain hotels; focused on revenue management since 2009.
To calculate what you keep from an OTA booking, take the room revenue excluding VAT and subtract the commission. OTAs such as Booking.com usually charge their percentage on the price the guest pays, including VAT, so the commission is larger than the percentage of your revenue excl. VAT suggests.
The formula
A worked example
Example figures for one night. 15% of €121 is €18.15, which is 18.15% of the €100 you report excl. VAT.
Use your own contract rate per channel
Commission rates differ per hotel and per channel: your Booking.com contract is not the default in your booking system. Some channels, such as wholesalers that send you a net rate, cost no commission on top. Enter the rate you actually pay, and keep the date it started, so last year is not recalculated when a rate changes.
What changes when your channel mix moves
If one percentage point of your nights moves from an OTA to your own website, the commission on those nights disappears. On a month of €150,000 room revenue excl. VAT with 15% commission, that is roughly €270 more that you keep, every month (1% of €150,000 is €1,500; 15% of €1,500 incl. 21% VAT is €272). Booking.com calculates with 9% VAT until 1 July 2027, which makes it €245.
RevView calculates commission per channel at your own rates and shows every figure incl. VAT, excl. VAT and net of commission.
Questions
Does Booking.com charge commission on the price incl. VAT?
In most contracts yes: the commission is calculated on the amount the guest pays. After the VAT increase on accommodation, Booking.com and Expedia calculate that amount with 9% VAT instead of 21% for stays with check-in up to 1 July 2027. Check your own contract.
Is commission part of my revenue?
Your revenue is what the guest paid, minus VAT. Commission is a cost on top. Net revenue is what is left after that cost.
How do I lower my commission costs?
By shifting bookings to your own website and phone, and by checking which channels bring guests you would not get otherwise.