Hotel Revenue Glossary · Segmentation

Travel Agency Commission

The fee paid by a hotel to a travel agency for each booking the agency generates. Traditional travel agency commissions are typically 10% of the room rate, paid after the guest completes their stay. Some hotels offer higher commissions as a booking incentive.

Why it matters: Travel agency commissions represent a distribution cost that affects NRevPAR. While lower than OTA commissions, agency bookings still reduce net revenue. Hotels that track commission costs by channel can make informed decisions about which distribution partners deliver the best net return.

All glossary terms Commission Structure Distribution Channel NRevPAR (Net Revenue Per Available Room)