Recruiter's Glossary

Examples: Guest Feedback Management • GDS Integration • OTA Commission

OTA Commission

Term from Boutique Hotels industry explained for recruiters

OTA Commission refers to the fees that hotels pay to Online Travel Agencies (like Expedia, Booking.com, or Hotels.com) for guest bookings through their platforms. It's a crucial part of hotel revenue management, usually calculated as a percentage of the room rate. Hotel managers need to understand these costs because they directly impact the hotel's profits. Think of it like a finder's fee - the OTA helps find guests for the hotel, and in return, they take a percentage of the booking value, typically ranging from 15% to 30%.

Examples in Resumes

Reduced OTA Commission costs by 20% through implementation of direct booking strategies

Managed relationships with multiple OTAs and negotiated OTA Commission rates down from 25% to 18%

Developed marketing strategies to balance OTA Commission expenses with direct booking revenue

Typical job title: "Revenue Managers"

Also try searching for:

Hotel Revenue Manager Distribution Channel Manager Hotel Sales Manager Reservations Manager Hotel Operations Manager Revenue Optimization Manager

Where to Find Revenue Managers

Professional Organizations

Online Communities

Industry Resources

Example Interview Questions

Senior Level Questions

Q: How would you develop a strategy to reduce OTA dependency while maintaining occupancy rates?

Expected Answer: A senior candidate should discuss multiple approaches including direct booking incentives, loyalty programs, strategic rate parity management, and marketing campaigns to drive direct bookings while maintaining good relationships with OTAs.

Q: How do you evaluate the true cost and value of different OTA partnerships?

Expected Answer: Should explain analyzing commission rates against booking volume, guest acquisition costs, competitive positioning, and the overall marketing value that OTAs provide through billboard effect.

Mid Level Questions

Q: How do you manage rate parity across different OTA channels?

Expected Answer: Should explain monitoring prices across channels, understanding contract requirements, and maintaining consistent rates while maximizing revenue through different promotions and packages.

Q: What strategies would you use to negotiate better OTA commission rates?

Expected Answer: Should discuss leveraging booking volumes, seasonal commitments, competitive analysis, and understanding of various OTA program tiers and benefits.

Junior Level Questions

Q: Can you explain what OTA commissions are and how they affect hotel revenue?

Expected Answer: Should demonstrate basic understanding of how OTAs charge hotels for bookings, typical commission percentages, and how these fees impact the hotel's bottom line.

Q: What are the main OTAs in the market and their typical commission structures?

Expected Answer: Should be able to name major OTAs like Expedia and Booking.com and have a general idea of standard commission ranges and basic contract terms.