Hotel Revenue Glossary · Distribution

Commission Structure

The compensation arrangement between a hotel and a distribution partner. It may be percentage-based, flat, tiered, merchant-margin, media-linked, or combined; use the current contract and booking statement to calculate total cost.

Why it matters: Commission structure directly impacts NRevPAR. A hotel selling most rooms through high-commission OTAs may show strong gross RevPAR but weak net revenue. Understanding commission structures across channels is essential for optimizing distribution mix and profitability.

All glossary terms NRevPAR (Net Revenue Per Available Room) OTA (Online Travel Agency) Distribution Channel