Calculate contribution by booking channel after acquisition costs and variable stay costs. Do not assume that the booking with the highest ADR produces the most profit—or that direct bookings have no acquisition cost.
Kalibri’s contribution approach distinguishes revenue from the cost of acquiring that revenue. Use actual channel agreements, invoices and campaign spending to populate the analysis rather than an assumed industry commission percentage. (kalibrilabs.com)
Hypothetical one-night comparison:
| Item | OTA booking | Direct booking |
|---|---|---|
| Room revenue | $300 | $285 |
| Commission or attributed acquisition spending | ($54) | ($20) |
| Payment cost not already included above | ($6) | ($6) |
| Variable room-servicing cost | ($45) | ($45) |
| Contribution before fixed costs | $195 | $214 |
These figures are illustrative. They do not establish actual OTA charges, direct-booking costs or hotel profit margins.
Our recommended channel analysis also distinguishes:
- Booked revenue from completed-stay revenue.
- Refundable reservations from realized collections.
- New demand from guests shifted between channels.
- Low-demand dates from nights that would otherwise sell out.
- Incremental marketing spending from fixed commercial overhead.
Before proposing an OTA reduction, model the rooms that might go unsold. A lower commission bill is not an improvement if the lost contribution is larger than the saving.