OTAs help fill when guests discover you on marketplaces. Direct + UPI recovers margin when guests already know your brand and can pay on your site — BitLegacy takes no OTA-style cut of those stays; gateway MDR still applies.
Product answer (primary): OTA commission vs direct bookings India. This post is an education worksheet only.
Illustrative EXAMPLE numbers only. We do not claim “save 15–20%.” Use your ADR, occupancy, and real OTA invoices for decisions.
When OTAs help — vs when direct recovers margin
- OTAs help fill — new markets, last-minute fill, guests who only trust a marketplace. Quitting overnight usually costs occupancy.
- Direct recovers margin — repeats, Maps/Instagram, WhatsApp replies that already know you. Send them to your guest website with UPI / Razorpay where entitled.
- Keep calendars honest — add Channel Manager when OTAs stay live (CM is not in Starter ₹299).
EXAMPLE commission line (author-set assumptions)
Author-set EXAMPLE for illustration (not your invoice):
- Average daily rate (ADR): ₹3,000
- OTA commission: 20% (author mid-band inside a common education estimate of ~15–25% — check your contract)
- Commission per OTA room night in this EXAMPLE: ₹600
That ₹600 is gone before staff salaries, power, linen, or GST compliance — in this EXAMPLE only.
EXAMPLE annual leak at different OTA mixes
Suppose the hotel sells 8,000 room nights / year (roughly a busy 25‑room house — adjust to your reality). Same EXAMPLE ADR and 20% commission:
| Share of nights via OTA | OTA nights | Commission @ 20% × ₹3,000 (EXAMPLE) |
|---|---|---|
| 80% | 6,400 | ₹38.4 lakh |
| 60% | 4,800 | ₹28.8 lakh |
| 40% | 3,200 | ₹19.2 lakh |
| 20% | 1,600 | ₹9.6 lakh |
Moving from 80% → 40% OTA mix in this EXAMPLE (same total nights, same ADR) keeps on the order of ₹19 lakh / year in the business — before website, ads, and MDR costs. Re-run with your numbers. We do not claim “save 15–20%.”
Even a smaller EXAMPLE shift — 10 percentage points off OTA (800 nights) — is about ₹4.8 lakh / year here.
Direct is not “free demand”
Direct bookings still cost something: website, software, WhatsApp time, maybe ads. Unit economics in this EXAMPLE:
| OTA night | Direct night (same ADR) | |
|---|---|---|
| Guest pays | ₹3,000 | ₹3,000 |
| Platform cut | ~₹600 (EXAMPLE) | ₹0 OTA-style commission |
| You keep (before your own costs) | ~₹2,400 | ₹3,000 before SaaS / MDR |
On BitLegacy direct stays there is no OTA-style cut. MDR (Razorpay UPI/cards where entitled) is a payment-gateway fee — not a BitLegacy cut of the room. You can offer a small direct perk and still beat OTA net in many mixes — verify with your invoices.
A sane strategy (do not “quit OTAs” overnight)
- Keep OTAs for discovery — especially new markets and last‑minute fill.
- Make direct easy — your own site, live availability, UPI/Razorpay, mobile checkout.
- Win repeats — reviews, WhatsApp thank‑you (Manual Notify — not auto-booking), loyalty or “book direct next time.”
- Keep calendars honest — a channel manager so growing direct does not create double bookings. CM packaging: not in ₹299 Starter.
OTAs and direct are not enemies. Unsynced OTAs and a paper front desk are.
MakeMyTrip/Goibibo — what they really charge
This worksheet treats OTA commission as a generic EXAMPLE band. If you specifically list on MakeMyTrip or Goibibo and want the real structure (GST treatment, payout cycle, how commission is calculated on the booking amount), see the dedicated post: MakeMyTrip commission for hotels in India. We do not restate a percentage here — check your own MakeMyTrip Connect statements.
Booking.com commission and invoicing
Booking.com bills commission monthly, in arrears, on checked-out stays — not at the time of booking. The invoice covers the previous month's check-outs and typically lands in your Extranet Inbox (Finance > Invoices) and email in the first week of the month, with 14 days to pay. Commission is charged on the full booking amount (room rate plus any extra fees you collect), including on cancellation and no-show fees you charge the guest — unless you mark the no-show within 48 hours of checkout and waive the fee. If you're setting up a new Booking.com listing, walk through the full first-booking checklist: Booking.com first booking for a new property in India.
Where BitLegacy fits
Commercial SoT: OTA commission vs direct bookings.
BitLegacy publishes:
- Front desk & billing (PMS)
- A guest website with booking engine for commission‑free stays on Starter from ₹299/mo (2 rooms)
- UPI / Razorpay where entitled
- Channel sync so OTA inventory stays aligned — confirm CM rules on pricing · money entry from ₹299
Start a free trial and measure your own OTA vs direct mix for a month.
Related reading
- UPI & Razorpay hotel website payments
- Airbnb commission vs direct for hosts / farmhouses (host vertical — secondary here)
- Booking source mix method (BitLegacy sample)
- Hidden ways hotels leak revenue
- Hotel software checklist for India
- Setting room rates
Run your numbers once. Most owners who do never look at “just one more OTA booking” the same way again.
Frequently asked questions
Are OTAs always more expensive than direct?
It depends. OTAs often take a platform commission (common education band ~15–25% — estimate; check your live contract). Direct on BitLegacy has no OTA-style cut of the room, but you still pay SaaS, marketing time, and gateway MDR on UPI/cards. Sometimes OTA reach fills nights direct would not. Labeled EXAMPLE maths: /ota-commission-vs-direct-bookings-india. We do not claim “save 15–20%.”
How much commission do OTAs charge hotels in India?
Common education content cites a ~15–25% band as an estimate — not a tariff BitLegacy invents. Your cut depends on the platform, rate plan, and live contract. Always check your OTA invoices.
Should independent hotels stop using OTAs?
Usually no. OTAs bring discovery. Keep OTAs for reach; grow direct for repeats and brand-aware guests on your own website. Unsynced calendars hurt more than an honest OTA mix.
What do I need to take more direct bookings?
A guest website with live booking tools (included on BitLegacy Starter from ₹299/mo for 2 rooms), UPI/Razorpay where entitled (MDR is a gateway fee — not a BitLegacy cut), and Channel Manager only if OTAs stay live (CM not in ₹299). Product answer: /ota-commission-vs-direct-bookings-india · UPI: /hotel-booking-engine-upi-razorpay-india · site: /website.
What does MakeMyTrip/Goibibo really charge?
Rates and billing cycles vary by property type, rate plan, and live contract, so we do not restate a figure here. We walk through how MakeMyTrip/Goibibo structure commission, GST, and payout timing in a dedicated post: /blog/makemytrip-commission-hotels-india. Check your own MakeMyTrip Connect/extranet statements for the numbers that apply to you.
What commission does Booking.com charge in India, and when is it invoiced?
Booking.com charges a set percentage of the total booking amount — room rate plus any extra fees you charge the guest (cleaning, service, no-show or cancellation fees) — once the guest checks out; your exact rate is in your contract and Extranet, not a number we restate here. The invoice lands in the first week of each month for the previous month's check-outs, in your Extranet Inbox under Finance > Invoices and by email, and is due within 14 days of the invoice date. Commission applies to confirmed stays, non-refundable and partly refundable bookings, charged cancellation/no-show fees, and overbookings; it does not apply to waived fees, no-shows you mark within 48 hours of checkout, or bookings with an invalid card — so mark any change within that 48-hour window or full commission is charged. If you use Payments by Booking.com, commission may be settled straight out of your payouts. Full walkthrough for a first-time partner: /blog/booking-com-first-booking-new-property-india.
About the author
Managing Director, BitLegacy Solutions LLP
Captainjeet Kaur leads BitLegacy Solutions LLP, the team behind BitLegacy Hotels — hotel management software for independent Indian hotels — and writes about running and growing hotels with simple, practical technology.
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OTA vs direct
When OTAs fill — and when direct recovers margin
Keep OTAs for discovery. Grow commission-free BitLegacy direct with UPI where entitled. EXAMPLE maths only — check your contracts. Not “save 15–20%.”