Direct booking ROI calculator
Is a direct booking website worth it?
A direct booking website is worth it once the commission it saves is larger than what the channel costs to own. On the assumptions in our economics article, that is about 17 units when 20% of bookings come direct, and about 35 units at 10%. Below roughly 10 units with little repeat business, it usually is not.
The calculator runs that arithmetic on your numbers. It opens on the worked example from the economics of direct bookings. Replace every figure with your own.
Run your own numbers
Your result
Net saving a year
€2,866
- Break-even inventoryat a 20% direct share
- 17.3 units
- OTA commission a yearif every booking came through OTAs
- €144,540
- Direct channel cost a year€18,333 fixed, €4,818 processing, €2,891 marketing
- €26,042
Marginal. The channel clears its costs by €2,866 a year, which is less than the €18,333 a year it costs to own. It turns negative if direct share falls below 17.3%.
How this is calculated
A direct booking is not free. It swaps the OTA's commission for payment processing, your own marketing, and the fixed cost of a site that has to be built and kept running whether or not anyone books. The calculator compares the two.
Break-even inventory (units) = annual fixed cost ÷ (net saving rate × GBV per unit per year × direct share)
- GBV per unit per year is the average daily rate × 365 × occupancy. In the example, €220 × 219 nights = €48,180.
- Net saving rate is OTA commission minus payment processing minus direct marketing cost. In the example, 15% − 2.5% − 1.5% = 11%.
- Annual fixed cost is the build cost divided by the years it is spread over, plus the running cost. In the example, €40,000 ÷ 3 + €5,000 = €18,333.
- Net saving a year is the net saving rate × the booking value you take direct, minus the annual fixed cost.
The verdict reads “marginal” when the net saving is positive but smaller than the annual fixed cost, and “worth building” once it is larger. The worked table in the article falls on the same line: 20 units is marginal, 35 units is clearly worth it.
The formula and every default come from The economics of direct bookings for short-term rental operators, which sources OTA fees to the published terms of Airbnb, Vrbo and Booking.com and to the annual filings of Airbnb and Booking Holdings. The 15% blended commission is an assumption, not a published rate. Take yours from your reservation statements.
Switching currency changes the symbol. Any example figure you have not edited is replaced by a round figure of a sensible size for that currency: the euro example multiplied by 1, 4 or 100. That is not an exchange rate, and nothing you typed is converted.
What the calculator leaves out
- Direct share is an input here and a result in practice. It follows your repeat-guest rate. If fewer than 10% of your guests return, the case for building is weak whatever your unit count.
- Operational readiness. A direct channel on manual availability produces double-bookings, and a double-booking costs more than the commission it saved.
- The OTAs' part in your direct demand. Listings act as a shop window, so the model assumes you keep them and move repeat and referred guests to your own site.
Frequently asked questions
Is a direct booking website worth it?
For most short-term rental operators, yes, but later than they expect. On typical assumptions (a 15% blended OTA commission, 2.5% payment processing, 1.5% marketing and a €40,000 build spread over 3 years), a direct channel breaks even at about 17 units when 20% of bookings come direct. Below roughly 10 units with little repeat business, OTA commission is the cheaper option.
How do I calculate direct booking ROI?
Take the booking value you expect to move to your own site and multiply it by your net saving rate: OTA commission minus payment processing minus direct marketing cost. Subtract the annual fixed cost of the channel, which is the build cost spread over its life plus hosting and maintenance. What remains is the yearly return.
How many units do I need before a direct booking site pays for itself?
Divide the annual fixed cost of the channel by the saving each unit produces at your direct share. With a €220 average daily rate, 60% occupancy and a net saving of 11 percentage points, that is about 35 units at a 10% direct share, 17 units at 20% and 12 units at 30%.
What does this calculator leave out?
Three things. Direct share is typed in here, but in practice it follows your repeat-guest rate, so measure that first. The model assumes your availability is reliable in real time, because a double-booking costs more than the commission it saved. And it assumes you keep your OTA listings, which are part of how direct guests find you.
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