OTA Commission
A necessary expense for property owners listing on platforms like Airbnb, Booking.com, Vrbo, and Expedia. While it is a fixed cost separate from our services, it is vital for enhancing your property's visibility to a global audience.
What
The "OTA Commission" refers to the fixed percentage fee charged by Online Travel Agencies (OTAs) for listing your property on their platforms. These platforms, such as Airbnb, Booking.com, Vrbo, and Expedia, charge a commission on each booking made through their site. The OTA commission is a standard cost for vacation rental owners who choose to list their property on these platforms, and it is separate from the services we offer at Huswell.
Why
The OTA commission is an essential part of listing your property on popular online platforms.
- Access to a large audience: OTAs provide exposure to millions of potential guests around the world, significantly increasing the chances of your property being booked.
- Trust and credibility: OTAs provide a sense of security and trust for guests, as they often have review systems, customer support, and guarantees in place, making them more likely to book.
How
Each OTA has its own commission model, but generally, the commission fees range from 15% to 20% of the booking amount. Here’s how the process works:
- Booking fees: When a guest books through an OTA, the platform takes a percentage of the total booking cost as their commission. The exact percentage varies depending on the platform.
- Payment and payout: After a booking is confirmed, the OTA processes the payment and deducts their commission before transferring the remaining amount to the host, Huswell.
- Fixed cost: The commission is a fixed percentage and is charged per booking, regardless of the pricing strategy or other costs associated with managing the property.
Who is it for?
The OTA commission applies to all property owners who use these platforms to gain visibility and secure bookings.