Economics · 7 min read · Updated June 2026
OTA vs direct bookings: the real math
Marketplaces sell reach; your own page sells margin. Most operators need some of both — but few have done the arithmetic on what their current mix costs, or what shifting it is worth. Here are the numbers.
By the Theybook team — built with operators, for operators
What each channel really costs
OTA commissions in tours and activities run 20–30% of the ticket. On a $150 seat, that's $30–$45 gone before fuel, crew or insurance. Direct bookings on a flat-fee platform cost only card processing — roughly 3%.
The spread between channels is therefore ~20–27 points of margin on identical work. No cost line in your business moves profit faster than channel mix.
A worked example
Take $300,000 of annual bookings at a 50/50 OTA/direct split with 25% OTA commission: you pay $37,500 in commissions. Shift to 30/70 and the bill drops to $22,500 — a $15,000 raise for the same trips.
Compare that to raising prices 5% (often feared, customer-visible) which yields the same $15,000: channel shift is the price increase your guests never see.
What OTAs are genuinely worth
Reach in markets where nobody searches your name, presence in itineraries planned from abroad, and a billboard effect — guests discover you on a marketplace, then Google you and book direct.
Treat OTA commission as a customer-acquisition cost, not a sales cost: worth paying for the first booking, wasteful on the fifth.
The repeat-guest loophole
Marketplaces own the guest relationship by design — but the human being who loved the trip will happily book direct next time if you make it easy: capture the relationship at the dock, on the confirmation page, in the post-trip review email.
This is why owning your customer data matters: the second booking is where the margin lives, and it's only yours if the list is.
Key takeaways
- OTA commissions run 20–30%; direct costs ~3% in processing
- Channel mix moves profit faster than any cost line
- Treat OTA fees as acquisition cost — first booking only
- The repeat booking is the margin; own the list that makes it direct
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Questions, answered
FAQ
01Do OTAs forbid cheaper direct prices?
Some impose rate parity in their terms; many operators are never asked to sign one. Read your specific agreement — and remember parity restricts price, not the bundle: direct guests can get better cancellation terms, perks or add-ons.
02What share of my bookings should be direct?
There's no universal number, but mature operators with strong reviews and a good booking page commonly run 60–80% direct, using OTAs as a top-of-funnel for new markets.
03How much does Theybook cost?
Theybook is a flat $99/month (or $83/month billed annually) with every feature included — unlimited bookings, unlimited experiences, the full design studio, automated emails, waivers, gift cards, CRM and team accounts. There is no commission, no per-booking fee, and no setup fee. The only other cost is Stripe's standard card-processing rate, which is paid to your own Stripe account like any other payment processor.
04Do you really take 0% commission?
Yes — zero, permanently. Commission platforms typically take around 6% of every order, which on $300,000 of annual bookings is roughly $18,000 a year. Theybook's flat fee means a record month costs exactly the same as a quiet one, so every additional booking you win is pure margin.
05Who processes the payments?
Your own Stripe account. Guests pay by card at checkout and the money settles directly to your bank on Stripe's normal payout schedule. Theybook never holds, routes or touches your funds — if you ever leave, your payment history and customer relationship with Stripe remain entirely yours.
06Do I need technical skills to set it up?
No. Setup is self-serve and most operators are bookable the same day: add experiences, set availability, pick a design preset and connect Stripe. The design studio uses visual controls with a live preview, and embedding on an existing site is a single copy-paste.
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