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Hotel commission rate & visibility programmes

Business Model & Unit Economics · Unit metrics

What it is

Hotel commission on Indian online travel platforms typically runs 15-22% of room revenue, with visibility or preferred-partner programmes adding roughly 3-7 percentage points, taking effective rates to 22-28%. Budget aggregator models run higher still on a revenue-share basis

Most platforms settle post-stay, so the hotel funds the stay before being paid

Impact on industries

  • The rate is the platform's core unit economic, and visibility programmes raise it without adding supply cost - the inventory is already listed
  • For the hotel it is the largest single distribution cost, which is why direct-booking pushes recur whenever occupancy is strong
  • Properties above roughly 60% platform dependence have little negotiating room, and the rate ratchets up rather than down
  • Rate parity terms decide whether a hotel can undercut the platform on its own site, so commission level and parity policy have to be read together

Industries affected