How much OTA commission are independent hotels overcharged?
Last reviewed 2026-07-01
There is no measured public benchmark for OTA commission overcharging. An industry illustration puts leakage around 1% to 2% of the commission you pay (Hotel Yearbook), not of revenue. The real figure depends on cancellation volume and channel mix, and only a reconciliation against your PMS reveals it.
- Industry illustration: about 1% to 2% of the commission you pay (Hotel Yearbook), not a measured rate.
- Cancellations and no-shows drive the largest share of errors.
- The error is a reconciliation gap between the OTA statement and the PMS.
- A three-month review quantifies your specific exposure.
The size of the leak
No independent study measures this precisely. An industry illustration (Hotel Yearbook) assumes 1% to 2% of the commission you pay is overpaid or uncollected. Properties with high cancellation volume or many channels sit at the higher end, because that is where commission errors concentrate.
The four error types
Commission on cancelled and no-show stays, an overstated commission rate, commission calculated on the wrong base amount (taxes and fees included), and duplicate charges for the same reservation.
Why it goes unnoticed
Booking volume is high, statements are rarely matched to the PMS line by line, and most properties accept the OTA's figures as final.
Finding your number
A free three-month review reconciles your OTA statements against your PMS and returns a documented number you keep.
Common questions
Is this common for small properties?
Yes. Smaller properties are less likely to reconcile OTA statements line by line, so errors accumulate quietly.
Can I get the commission back?
Commission charged in error is disputable. Documenting each against your PMS makes the case.
What does the review cost?
The three-month review is free. You keep the findings and continue monthly only if you want.
See your own number, free
A free three-month review reconciles your real data and shows you exactly what is recoverable. You keep the findings.
Get your free 3-month review