← Business Metric: Industry Specific (Consumer, Services & Financial) (all topics)
OTA (online travel agency) take-rate
What it is
The commission an online travel agency retains from a booking, expressed as a percentage of gross booking value. It varies sharply by product - hotels pay far more than airlines, where thin margins and supplier power cap what can be charged
Take-rate multiplied by GBV is essentially the OTA's revenue
Impact on industries
- The primary profit lever - a small take-rate improvement on a large booking base moves earnings disproportionately
- Mix shift toward hotels, holidays and ancillary products raises blended take-rate without needing more bookings
- Suppliers push back continuously, since commission is a direct cost to a hotel or airline already operating on thin margins
- Competitive intensity and discounting compress it, and customer acquisition cost can consume the entire commission on a marginal booking