Start with the measurement
Most distribution debates in hospitality stay stuck on the same question: how much are we paying online travel agencies? The first question should be whether channel performance is being measured consistently at all.
Mixed revenue bases distort the picture
Many properties record revenue in their property management system as it arrives: net for some channels, gross for others. Channels settling net can appear to deliver a weaker ADR, while channels invoicing commission separately appear stronger than they are. Without a reconciled view of revenue and distribution costs, the comparison can be distorted before the analysis begins.
Compare net ADR and net RevPAR consistently
For internal channel analysis, use net ADR and net RevPAR across every channel on the same defined basis. Start with room revenue excluding taxes and subtract the distribution costs included in your definition. Reconcile deductions already taken at settlement so commission is not counted twice. Direct bookings also have acquisition and transaction costs; they are not automatically cost-free. Check commission as a percentage of the relevant sales across months, using a consistent period and revenue basis.
Keep market benchmarking in context
Seasonal channel-mix changes can alter both distribution costs and the way reported revenue relates to the amount retained. Use STR comparisons on the required reporting basis, and interpret them alongside your internal net analysis. STR has different gross and net treatments for certain booking models, so a change in market ADR or RevPAR does not by itself tell you that channel profitability improved. Check the revenue basis before drawing that conclusion.
Look at the booking window by channel
Pricing changes throughout the year, whether it is managed manually or by a revenue management system. If a lower-net-ADR channel books further out and fills your base before stronger channels reach their usual booking window, you may be giving away margin. Compare channels for the same stay dates and consider expected demand, cancellations and the risk of displacing higher-contribution bookings. Early base business can be valuable; the question is whether its contribution justifies the inventory committed.
Include the operational dimension
Length of stay affects housekeeping and front-of-house workload. Automation levels differ. Profile handling, content management and guest messaging all take time. These costs do not appear in the commission line, but they affect a channel’s contribution. Look at workload per reservation and per occupied room night, as well as the headline commission rate.
Judge the contribution, not just the commission
The commission rate is only the entry point. A channel’s value comes from what the business retains, when it receives the demand and what it costs to serve that demand. Those are the measures that should inform your distribution strategy.
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