We quote one number more than any other: a $1M operator at a 60% OTA split hands the platforms roughly $150K a year. Here is the whole calculation, so you can argue with it.
The arithmetic
- $1,000,000 gross bookings × 60% through platforms = $600,000 of OTA volume
- $600,000 × 25% contracted commission = $150,000
- At a realistic effective rate above 30%, the figure passes $180,000
The part that compounds
This is not a one-time cost. It scales with revenue forever: grow to $1.5M at the same split and the platforms’ share grows to $225K–$270K. Every dollar of growth you win is taxed at the split you tolerate.
What moving 15 points is worth
Shift the split from 60/40 to 45/55 — conservative, achievable in a year with a booking engine, brand defence and repeat-guest capture — and roughly $150,000 of bookings stop paying commission. Net of the cost of winning them (call it 9% for ads, software and processing), that is on the order of $35–47K a year, recurring.
Your split is probably not 60/40 exactly. Run your own numbers in the calculator, then let the audit replace the estimate.
