How Do OTAs Make Money From Hotels? (Full Commission Breakdown)
Booking.com, Expedia, Agoda — they all look like discount engines. They are commission engines. Here is exactly how much they take, from whom, and why.
Dispatches on hotel pricing, OTA economics, and how premium stays actually get booked — written by people who see the wholesale side.
Booking.com, Expedia, Agoda — they all look like discount engines. They are commission engines. Here is exactly how much they take, from whom, and why.
Same hotel, same dates, five different prices. That is not a glitch. It is a 40-year-old distribution architecture. Here is exactly what is happening.
The "book early" and "book late" advice are both wrong. The real answer depends on hotel class, destination, and day of week. Here is the booking curve, broken down.
Bedbanks are the wholesale middleware that quietly powers 30%+ of all hotel bookings worldwide. Here is exactly how they work — and why their rates are cheaper.
The public price is identical — by contract. But where the value actually lives is different on each channel. Here is the honest breakdown for 2026.
The cheapest way to book 4- and 5-star hotels is not Booking.com, Expedia, or the hotel website. It is the B2B wholesale (bedbank) layer, typically 12–25% below the public price.
The specific mechanics of how Vacayos queries the wholesale layer, compares it against public OTA prices, and shows you the gap.
The red banners, the "5 people are looking right now", the scarcity counters. A look at what is actually happening under the hood.
There are three cancellation tiers on the OTA. Only two are clearly displayed. The third is where the real arbitrage lives.
The 10%, 15% and 20% discounts splashed across every listing. Let us audit what is actually being discounted.
A legal carve-out in parity clauses that hotels use every day, consumers almost never see, and insiders use to book premium rooms for 20–30% less.
The front desk agent can see, in real time, how you booked. That single data point decides whether you sleep in the suite tonight.
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