COMPARISON GUIDE
Direct booking vs OTAs: what commission actually costs you
Not a case against OTAs. A plain look at what they cost and what changes when you add a direct channel alongside them.
Illustrative example: ₹20 lakh in annual room revenue at 20% OTA commission equals ₹4,00,000. Fees vary. Software, usage charges, payment-provider fees and taxes are separate.
WHY THIS PAGE EXISTS
The first booking feels free. It rarely stays that way
Nobody minds paying an OTA for that first guest, the platform did the introducing and a small cut feels fair for that. The friction shows up later: after a year of statements, when the commission line has quietly become one of the property’s biggest costs and most of the guests who stayed are still strangers to the property itself. This page lays out exactly what that costs, in rupees and what a direct channel changes about it. For the fuller story, rate parity, payout timing, the tax mechanics, see our deeper breakdown of OTA disadvantages on the blog.
FIRST, THE BASICS
What is an OTA and what does “direct” actually mean?
An OTA, short for online travel agency, is a listing site or app where guests search, compare and book; you pay a percentage of the room rate for that introduction. A direct booking is any booking that reaches you without going through one of these apps: a phone call, a WhatsApp message, or your own booking link. On a direct booking, you keep the full rate.
OpenStays is not an OTA. It doesn’t list your rooms anywhere new or bring you guests who don’t already know about you. It’s a booking layer for the guests who already found you, so the conversation that used to happen slowly over WhatsApp or a phone call turns into a confirmed, paid booking in minutes.
THE MATHS
₹20 lakh in annual bookings: two routes compared
Through OTAs
An illustrative 20% commission on ₹20 lakh in annual room revenue equals ₹4,00,000. Actual OTA fees and settlement schedules vary by agreement. Taxes and other fees are separate.
Through direct booking
OpenStays charges 0% booking commission. Subscription and usage charges are separate. Direct UPI requires your team to verify receipt; gateway fees and settlement schedules follow your provider’s terms. See the Pricing page for current plans.
₹4,00,000 is the illustrative OTA commission before taxes and other fees. Moving bookings to your direct channel can reduce that commission, but software, messaging, payment-provider and marketing costs still apply. Actual savings depend on how many bookings move and the costs you incur.
ONE ₹30,000 BOOKING, TWO WAYS IT COULD GO
Through an OTA
₹24,000 before taxes and other fees
reaches your bank, 2 to 4 weeks later
Illustrative 20% commission: ₹6,000 on a ₹30,000 booking. Taxes and other fees are separate.
Through direct booking
FULL AMOUNT
₹30,000
before software, usage, payment-provider fees and taxes
0% OpenStays booking commission. Software, usage charges, payment-provider fees and taxes are separate.
On ₹20 lakh in annual room revenue at an illustrative 20% OTA commission
₹4,00,000 in OTA commission before taxes and other fees
WHAT OPENSTAYS ACTUALLY IS
A direct-booking layer that runs alongside your OTA listings, not instead of them
OpenStays doesn’t ask you to delist anywhere. It gives your property a booking link and a WhatsApp AI assistant that qualifies enquiries, quotes rates, negotiates within limits you set and collects payment, all landing directly in your account, with the guest’s ID and contact details staying in your own records instead of an app’s. Most hosts keep their OTA listings for discovery and use OpenStays for everyone who reaches them directly: past guests, referrals, Instagram and Google visitors and the walk-in who asks for your number.
WHAT CHANGES
Three things a direct channel gives back
The guest becomes yours
Phone number, ID and stay history sit in your own guest register from the first booking, not locked behind an app that masks contact details until check-in.
Your rates are your own
No rate parity clause. A returning guest or a direct enquiry can get a better rate than a stranger on a listing site, if you choose to offer one.
Payment lands when the guest pays
Direct UPI payments require the property to verify receipt and confirm the booking manually. Automatic payment confirmation requires a supported payment gateway such as Razorpay; provider fees and settlement schedules apply. OpenStays does not hold guest funds.
SEE IT IN ACTION
An example homestay in Coorg
Consider a five-room homestay in Coorg that receives most bookings through OTAs. The owner wants past guests and people who find the property’s website to have a direct booking option.
The owner keeps OTA listings and adds a booking link to the property’s website, Instagram bio and WhatsApp Business profile. Guests can check dates and follow the configured payment flow. The team records phone bookings and verifies direct UPI receipts. The owner can then measure the actual share of direct bookings and compare costs over time.
SIDE BY SIDE
OpenStays vs OTAs, point by point
| What to compare | Direct with OpenStays | OTAs |
|---|---|---|
| Booking commission | 0% OpenStays booking commission | Under your OTA agreement; 20% is used only for the illustration above |
| Payment timing | Direct UPI receipt or the supported gateway’s settlement schedule | Under the platform’s settlement terms |
| Taxes and deductions | Applicable tax obligations still need to be checked | Check statutory deductions and the platform’s statements |
| Guest details | Keep booking and guest records in your account | Access follows platform terms and the guest’s booking |
| Rates and policies | Configure direct rates and your cancellation policy | Follow your listing agreement and selected rate plan |
| Guest discovery | Your website, referrals, search and shared booking links | Marketplace search and recommendations |
| Guest follow-up | Subject to guest consent and messaging requirements | Subject to platform communication rules |
| Work per enquiry | Configured replies and payment links; your team handles verification and exceptions | Platform booking flow and messaging tools |
| Costs as bookings grow | Plan limits, room count and usage affect your costs | Commission follows booking value under your agreement |
| Records when switching | Export booking and guest records | Check platform export access and terms |
BEING FAIR TO BOTH SIDES
What OTAs get right and where they cost you
OTAs
Where they help: a guest who has never heard of your property can find you on an app they already trust, especially a first-time visitor to a new town. That discovery is worth something and it is honest to say so.
Where they cost you: the commission does not stop at the percentage. Rate-parity clauses limit what you can offer elsewhere, the guest stays masked until check-in and a returning guest who books again through the app gets charged twice for a relationship you already built.
Direct booking
Where it helps: every booking that comes through a channel you already own, WhatsApp, Instagram, your own number, converts without a cut taken out of it and the guest’s details stay in your own register from the first message.
Where it does not help: it does not bring you new guests who don’t already know you exist. If discovery is your problem and not conversion, OpenStays will not fix that on its own. It works best alongside your OTA listings, not instead of them.
THE HONEST ANSWER
Most properties should run both, just not blindly
The properties that do best don’t pick a side. They keep their OTA listings for what OTAs are genuinely good at: putting the property in front of people who don’t know it exists yet. And they add a direct channel for everyone who already does, past guests, Instagram followers, walk-ins, referrals.
The mistake isn’t using an OTA. It’s routing every guest through one by default, including the ones who typed your name into Google or messaged you directly, simply because that’s the only booking flow the property has ever set up. A direct channel doesn’t ask you to give up your listings. It asks you to stop sending guests who already chose you through a toll booth that was built for guests who haven’t.
HOW TO START
Add a direct channel without touching your OTA listings
Add a direct booking channel alongside your existing OTA listings.
1. Onboard your property
Add rooms, photos, rates and house rules to OpenStays, takes about 15 minutes. Your OTA listings stay exactly as they are.
2. Get your booking link
OpenStays generates a public listing page and a booking link you can drop into your WhatsApp Business profile, Instagram bio and Google Business listing.
3. Let the WhatsApp assistant take enquiries
When someone messages asking about availability, the assistant quotes, negotiates within your limits and sends a payment request, day or night.
4. Get paid directly
Advance and balance land straight in your bank via UPI or gateway, no waiting on a platform settlement cycle.
WORTH CHECKING ON YOURSELF
How dependent on listings is your property, really?
- What share of last year’s bookings came through listing sites versus direct?
- How many of those guests’ phone numbers are actually in your register today?
- Have you added up last year’s commission, GST and TDS/TCS deductions in one place?
- If a listing site changed its commission tomorrow, what would that do to your margin?
- Does a past guest have any way to book you directly, at a rate you control?
GOT QUESTIONS?
Answers to frequently asked questions
Do I need to delist from OTAs to use OpenStays?
No. OpenStays is designed to run alongside your existing OTA listings, most hosts keep every listing they have and use OpenStays for the enquiries that reach them directly.
How fast do direct payments actually settle?
Direct UPI payments go to your linked account and need verification by your team. Payments through a connected gateway follow its settlement schedule and fees. OpenStays does not set a universal same-day settlement schedule.
Does OpenStays store guest ID data securely?
Yes, guest ID storage and Guest ID Compliance are core features, including C-form flagging for foreign travellers and export in the register format authorities ask for.
Can I run OpenStays alongside multiple OTAs at once?
Yes. There’s no exclusivity requirement, OpenStays is a direct channel, not a replacement for your existing listings on any platform.
What happens to bookings I already have on OTAs?
Nothing changes about them. OpenStays only handles the enquiries and bookings that come to you directly, your existing OTA reservations are unaffected.
Will my OTA account or ranking be affected if I also use OpenStays?
No. OpenStays runs alongside your OTA listings, not through them, so your account standing, ranking and reviews on those platforms are untouched.
Do I need any technical skill to set this up?
Start by configuring your property, rooms, rates and booking rules. WhatsApp connection and other integrations may need additional onboarding. Check the setup steps for the features you plan to use.
Is this only useful for properties that are heavily dependent on OTAs?
No. Even a property that already gets a lot of direct enquiries benefits, since those enquiries are currently being answered by hand instead of automatically.
WHAT TO EXPECT
Your first month running both channels together
Start with your property details, booking rules and payment setup. Share your booking link on your website and the channels guests already use to reach you. Keep existing listings running while you record direct enquiries and reservations. Review your actual booking mix and costs after the first month; results depend on your property and the enquiries you receive.
See what changes for your property
Keep every listing you have today. Add a direct channel in fifteen minutes and see the difference on your next booking.