Guest Acquisition Cost Calculator: OTA vs Direct

How much does it actually cost you to get one guest?

An OTA booking looks like full revenue, but after commission, boosters and promotions, 18–25% is gone before you see a rupee. A direct booking looks "free", but payment gateways, Google Ads and discounts add up. This calculator shows the real numbers side by side.

OTA Commission 15–25% Visibility Booster +5% Direct: Gateway + Ads

Room Rate (₹)

Your standard BAR, before taxes

Monthly Bookings via OTA

Used for monthly/annual projection

OTA Booking Costs

Base Commission 18%

MMT/Goibibo: 15–18% | Booking.com: 15–20%

Visibility Booster / Preferred Partner Higher ranking on OTA in exchange for extra commission

+5%

Extra Commission 5%

OTA Promotion / Genius Discount Flash sale, Early Bird or Genius-eligible rate offered on OTA

−10 to 20%

Discount on Rate 10%

Direct Booking Costs

Payment Gateway Charge Razorpay / PayU / CCAvenue per transaction

~2%

Gateway Fee 2%

Google Ads / Meta Ads Estimated ad cost attributed per confirmed direct booking

₹ flat

Ad cost per booking ₹200

Direct Booking Discount Website-only rate or loyalty discount to incentivise direct

custom %

Discount on Rate 5%

Direct Booking Saves You Per Booking

₹0

You keep 0% more per direct booking

OTA Booking Breakdown

Room Rate ₹3,000

OTA Promo Discount −₹300

Effective Rate ₹3,000

Base Commission −₹540

Booster Commission −₹150

Total Cost −₹540

                  You Keep (OTA)
                  ₹2,460
                

Net Revenue Per Booking

Via OTA

₹2,460

Cost: 18% of rate

Via Direct

₹2,940

Cost: 2% of rate

Acquisition Cost as % of Room Rate

OTA Total Cost 18%

Direct Total Cost 2%

Direct Booking Breakdown

OTA, You Keep

₹2,460

Acquisition cost: ₹540

Direct, You Keep

₹2,940

Acquisition cost: ₹60

Monthly saving (direct vs OTA)

₹19,200

Based on 40 bookings/month

Related Tools & Guides

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OTA Dependency Calculator

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Direct Booking Strategy

Reduce OTA dependency safely

Frequently Asked Questions

What is the average OTA commission for hotels in India?

Standard commission ranges from 15% to 20% depending on the platform. MakeMyTrip and Goibibo typically charge 15–18%, Booking.com charges 15–20%. This is before any boosters or promotions, which add further cost on top.

What is a Visibility Booster and is it worth it?

A Visibility Booster (offered by Booking.com, MakeMyTrip and others) increases your listing rank in exchange for an additional commission, typically 5% above your base rate. It only pays off if the incremental bookings it generates exceed the extra cost. Use this calculator to see the net revenue impact before activating one.

Is direct booking always more profitable?

Usually yes, but not always. If you are spending heavily on Google Ads and offering a large direct discount, your effective cost can approach OTA levels. The goal is to keep direct acquisition cost below 8–10% of room rate, which is still well below a typical OTA commission.

What payment gateway charges should I expect in India?

Razorpay, PayU and CCAvenue typically charge 2–3% per transaction for credit/debit card payments. UPI transactions are generally 0–1%. Use 2% as a safe planning average for credit card bookings on your website.

How do I calculate cost per direct booking from Google Ads?

Divide your total monthly Google Ads spend by the number of direct bookings it generated that month. For example, if you spend ₹8,000/month and get 40 direct bookings, your cost per booking is ₹200. Track this in Google Ads or your booking engine's source attribution report.