Originally Posted by
bocastephen
standard hotel commissions for TAs are 10% of the base room rate, I wouldn’t call that ridiculously high.
of course some larger online agencies will negotiate a bulk commitment of rooms at a specific property for an unpublished rate and mark up their cost, but they assume the risk of loss of the don’t unload all of the rooms.
OTA commissions for Marriott/Hilton/Hyatt are around the 12-15% range. OTA mix is probably about the same (maybe in the high teens), but varies by property.
OTA commissions for a random independent hotel in a city can be as high as 20% or more. And OTA mix can be 40-50%
Marriott/Hilton/Hyatt take about 5% of revenues in fees, and another 5-6% for marketing, loyalty program, expenses, etc. But they also do things like mandate brand standards, mandate renovations every 6-7 years, etc.
So you can do the math as an independent property in a city on whether a large brand works for you.
Where Marriott/Hilton excel is in the Residence Inn / Courtyard / Hilton Garden Inn area where the hotel almost can't exist without the brand. Same with big convention hotels.