How Much Are OTA Commissions Costing Your Riad Every Year?
Key takeaway: “20%” is a useful warning sign, not a universal OTA rate. The number that matters is the commission and programme fees in your own agreement, multiplied by the booking revenue that actually passed through that channel.
Start with your contract.
OTA commission changes by platform, property, market and participation in visibility programmes. A 2026 hospitality-industry guide places typical OTA commission in a 15–25% range, but that is a benchmark, not proof of your riad’s rate. Pull the percentage from your extranet, invoice or contract before making a decision.
Use one transparent calculation:
OTA room revenue × contractual commission = commission paid. For illustration only: 800 booked nights × 700 MAD ADR × 18% commission equals 100,800 MAD. Replace each input with your own nights, average rate and contractual percentage; do not use this example as a forecast.
Compare net contribution, not just gross revenue.
A direct booking avoids OTA commission, but it still has costs: card processing, booking-engine fees, marketing and staff time. The right question is whether the direct channel produces more profitable bookings after those costs, not whether OTAs should disappear completely.
Build a direct path guests can complete
A direct channel needs current availability, an easy mobile booking flow and a clear official path from search to payment. Google documents that eligible hotel partners can appear in free booking links, which send travellers to the hotel’s own landing page; availability, landing-page quality and price accuracy affect visibility.
Keep OTAs in the mix, deliberately
OTAs can still provide discovery, especially in new markets or quiet periods. Track each source by gross booking value, commission, cancellations, payment costs and repeat-booking potential. Shift the mix only when the numbers show that your direct channel can carry more demand reliably.
Applied example from my work
My direct booking service uses this cost baseline to prioritize the journey, tracking and operational connections that can improve channel ownership. Continue with the guide to reducing OTA dependence.
If the true cost of OTA bookings is unclear, contact me to map the numbers and improve the direct path.