Compare equivalent bookings
Use the same stay dates, room types, meals and cancellation conditions. Comparing a cheaper direct offer with a more expensive flexible OTA rate does not isolate channel efficiency.
Include visible and hidden costs
For OTAs, include commission and paid programmes. For direct bookings, include advertising, payment fees and booking-engine costs using a consistent allocation method. Direct bookings are not necessarily free.
Work through a simple example
An illustrative OTA rate of €120 with 15% commission leaves €102 before other costs. A direct rate of €115 with €10 acquisition cost and a €2 payment fee leaves €103. Operating costs are not included. This illustrates a method, not typical market rates.
Check incremental demand
Did the channel bring a guest you otherwise would not have had, or shift existing demand? Assess weak and strong dates separately. Do not close a channel based only on a monthly average without evaluating its contribution.
Add revenue, acquisition costs, contribution before operating costs and demand context to your channel report.