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Own Booking Website vs OTA Listings: How Much Commission Can a Travel Business Save?

How OTA commission adds up for tour operators, hotels and cab operators, a worked example, and how to move repeat customers to your own booking website and app without losing portal visibility.

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By Vijay Kumar

Founder & CEO, Websicon Infoworld Pvt. Ltd. ยท 12 Years Experience

Short answer: every booking that comes through an online travel portal costs a commission, and the customer's next booking often goes back through the portal too. Your own booking website and app does not replace portals for new customers, but it lets repeat and referred customers book you directly โ€” with no commission and with their data staying in your business.

Online travel agencies (OTAs) and aggregator apps are useful: they bring customers who have never heard of you. The problem is what happens next. The same customer books again through the portal, you pay commission again, and the portal shows them your competitors alongside you.

A Worked Example

The numbers below are illustrative only. Commission rates vary by portal, category and contract, so replace them with your own.

ExampleValue
Bookings per month through portals100
Average booking valueโ‚น10,000
Example commission rate15%
Commission paid per monthโ‚น1,50,000
If 30% of these are repeat/referred customers who book direct insteadโ‚น45,000 saved per month
Saved per year in this exampleโ‚น5,40,000

Even if your numbers are a fraction of these, the saving from moving repeat customers to direct booking usually covers the one-time cost of your own platform quickly.

Portal Listing vs Own Booking Platform

Portal / OTA listingOwn website and app
Commission per bookingYesNo
Who owns the customerThe portalYou
Competitors shown next to youYesNo
Brings brand-new customersYesThrough SEO, ads and referrals
Repeat bookingsOften go back to the portalCome straight to you

How to Move Customers to Direct Booking

  1. 1.Keep your portal listings for discovery โ€” do not switch them off
  2. 2.After each trip, send the customer your app link and a thank-you message on WhatsApp
  3. 3.Offer a small benefit for booking direct next time, such as a free transfer or upgrade
  4. 4.Put your website and app on visiting cards, invoices and vehicle stickers
  5. 5.Ask happy customers for Google reviews that mention your brand name

Frequently Asked Questions

Should I stop listing on portals?

No. Portals are useful for new customers. The goal is to stop paying commission on customers who already know you.

Is it allowed to invite portal customers to book direct?

Check your portal contract. Many restrict contacting customers about the booking made through them; marketing to your own past customers and walk-ins is usually your own decision.

๐Ÿ’ธ Paying too much portal commission? Message us on WhatsApp to see your own booking website and app in action.

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About the author

Vijay Kumar โ€” Founder & CEO

Leads product strategy, client relationships & business development. Drives Websicon's vision of making AI accessible to Indian SMEs.

Related service

โœˆ๏ธ Travel Booking Website & App โ†’

Apni travel booking website + app โ€” apne brand mein