OTA Commission & Merchant Payout Settlement Calculations

For hotel or BnB businesses, leveraging on the Online Travel Agents (OTAs) such as Agoda, Booking.com, Airbnb, Expedia, and many more to drive booking sales is common, especially in Southeast Asia region. Certainly, this does not come free. Based on the Agency Model, OTAs will charge the business a commission, ranging from 3% to 30%, for each confirmed booking.

Nevertheless, we have been hearing from hotel owners and BnB owners grumbling about the calculation of the final settlement they receive from Online Travel Agents (OTAs) every time when a guest checked-out. The amount that they received from OTAs usually less than what they would have thought they should.

If you are having a puzzle like them and wondering how Online Travel Agencies (OTAs) commissions & merchant settlements are calculated, here we have come out with an Excel file with the formulas for you to refer to. 

We hope the following sharing would be helpful in solving your puzzle.

(Disclaimer: The following calculation is only as a reference and it was formed based on the information shared by our helpful hotel & BnB merchants.)

Download the OTA Commission Calculation excel file here

Now, let’s get ready with your calculator or even Abacus, and explore together with us. Feel free to share with us, if your formula is different from ours.