What OTA commission actually costs you

Easy to say, hard to feel. Here it is in rands.

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A guesthouse taking bookings through the large travel platforms typically pays fifteen to twenty percent. That number is easy to say and hard to feel, so here is what it looks like in rands.

THE ARITHMETIC

A room at R1,800 a night, sixty percent occupancy, ten rooms. That is roughly R3.9 million a year in room revenue.

If seventy percent of those bookings come through a platform at eighteen percent commission, that is about R495,000 a year paid in commission. Not profit — revenue, off the top, before you have paid for a single sheet or slice of bread.

Move a third of those bookings to direct, and you keep roughly R165,000. That is a staff member. That is a refurbishment. That is the difference between a hard year and a comfortable one.

WHY DIRECT IS HARD

The platforms are very good at what they do. They spend enormously on being the first result, they hold the customer relationship, and many of their contracts prevent you from undercutting your own listed rate.

But the thing they cannot own is the guest who already knows your name. Somebody who stayed last year, somebody who was recommended by a friend, somebody who saw you and searched for you directly — that guest is yours if you make it easy, and theirs if you don't.

WHAT ACTUALLY SHIFTS IT

Be findable by name. When somebody searches your guesthouse specifically, your own site should be the first result — not a platform listing that then charges you for the booking.

Make direct booking obviously better. Not cheaper, if your contract forbids it — better. A late checkout. A bottle on arrival. Something concrete a returning guest values.

Keep the relationship after checkout. The platform owns the first booking. You own every one after it, but only if you have their details and a reason to contact them.

Watch the number, not the feeling. Track what percentage of bookings arrive direct, every month. If you cannot state that figure, you cannot manage it — and it is the single most valuable number in the business.

WHERE TO START

Work out your own version of the arithmetic above. Real rate, real occupancy, real commission percentage. Most owners have never written it down, and the figure is usually larger than they expect.

Then decide what a third of it would be worth to you.

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