Travel Agent & OTA Channel Costs Explained

What are Travel Agents Commissions
In the luxury short-term rental market, travel agent partnerships are invaluable for securing high-end guests who seek personalized service and vetted accommodations. These agents leverage industry expertise and trusted networks to drive bookings that might not happen otherwise.

Commissions can vary between 5 - 20%, with fees shared between the Owner and Gather per contract terms. Despite the cost, their ability to attract premium clientele, streamline bookings, and enhance credibility makes them a key driver of revenue and long-term success.

What are Online Travel Agents (OTA) Commissions?
Online Travel Agents (OTAs) like Airbnb, VRBO, and Booking.com serve as powerful marketing platforms, connecting luxury rental properties with a global audience. In exchange, some platforms charge a commission—typically a percentage of the gross room rate or gross room rate plus fees.

While OTA commissions are an added expense, they play a crucial role in maintaining high occupancy rates, generating consistent revenue, and leveraging their vast reach to attract discerning travelers worldwide.

To mitigate these costs, Gather Vacations strategically applies a rate escalator (Rack Rate Rent + Channel Commission Costs) when possible, ensuring owners maximize their earnings while maintaining competitive positioning within the luxury rental market.

Rate Escalator

Here's a brief message from our Director of Reservations, Bronson Balles, regarding our rate escalator practice:

Channel Costs

Gather transparently displays online travel agent commission costs to all of our key stakeholders in alignment with GAAP, Income Reporting & Tax Filing compliance.

AirBNB- 15.5% Click here for more info on Airbnb's newest changes (10/27/25)
Amex- 7.9%
Booking.com- 10%
Exotic Estates- 10%
Genie- 10%
HomeToGo- 11%
Marriott- 15-20% depending on property
RealVoice- 10%
Synergy Co- 10%
Top Villas- 10%
Villas of Distinction- 10%
Whimstay- 5%

Subscription Channel Costs

VRBO- No additional fee is assessed to the Owner. However, there is a subscription service of $600 per year that depending on the management service tier selection — will be covered by Gather. There is no by-reservation cost charged to Gather or Owner, only guests currently.

How are these commission types reflected on my owner statement?

Gather does share in the travel agent commission expense with our owners. The share is determined by the units assigned property management agreement & it's corresponding management fee.

Below are examples of travel agent & online travel agent reservation breakdowns using a 25% management fee for simplicity:

🛅 Standard Travel Agent Commissions (personal travel agents/travel agencies)

Gross Rent Earned: $1,000
Travel Agent Commission (10% of Gross Rent): $100
Management Fee (25% of Gross Rent): $250

Travel Agent Commission Fee Allocation: $100

Gather contributes $25 towards the Travel Agent Commission by assessing their management fees net of costs on statement
The Owner contributes the remaining $75 on statement.

Final Earnings:

Owner’s Net Earnings: $675
Gather’s Net Earnings: $225
Travel Agent Earnings: $100

🛅Online Travel Agent Commissions (Airbnb, Amex Booking.com, Marriott)

Gross Rent Earned: $1,000
OTA Net Commission assessed: $100
Management Fee (25% of Gross Rent): $250

Fee Allocation:

Gather contributes $25 towards the OTA Net Commission off statement
Owner contributes $75 towards the OTA Net Commission on statement

Final Earnings:

Owner’s Net Earnings: $675
Gather’s Net Earnings: $225
Channel Costs: $100

📆Booking sites such as Airbnb, Booking.com, VRBO, Marriott, etc. are often consumers’ first stop when researching and booking their next trip. Channel Partnerships are a vital way to increase revenue, gain repeat bookings, and increase brand awareness for direct bookings.

Need a useful email reply to your owner? See our OTA email template here: OTA Owner Email