A channel manager to cut OTA commissions is a tool that centralises the distribution of rates and availability, allowing you to boost direct sales and minimise reliance on intermediaries. By syncing all channels in real time, you avoid overbookings and optimise your pricing strategy to capture more profitable bookings.
The average OTA commission can exceed 20%, a cost that directly eats into the profit of every booking. Reducing that reliance doesn't mean disappearing from the OTAs, but rather balancing your channel mix in favour of direct sales. Avirato includes a channel manager integrated with the booking engine and PMS, which lets you manage all channels from a single screen and apply strategies that encourage conversion on your own website.
How does a channel manager help cut OTA commissions?
The key lies in the immediate synchronisation of rates, availability and restrictions across all connected channels. Without a channel manager, hoteliers must update each portal manually – a slow, error-prone task that can lead to overbookings or lost opportunities. With a centralised tool, you can:
- Prioritise direct sales: offer slightly lower prices or exclusive benefits on your booking engine, offsetting the commission you would otherwise pay the OTA.
- Apply smart restrictions: close or limit sales on certain portals based on demand, minimum stay or guest segment.
- Avoid rate parity becoming a straitjacket: by having control of all channels, you can design specific offers for your website that don't breach contracts but make direct booking more attractive.
Key steps to configure your channel manager and reduce commissions
Connecting channels is not enough; strategic configuration is what determines the impact on your distribution costs. These steps will help you get the most out of it:
- Audit your current channels: identify which OTAs bring you profitable bookings and which only generate costs. Keep the channels that contribute to your mix and consider limiting or removing those that don't.
- Define a differential pricing policy: with the channel manager, you can offer a slightly lower price on your website (for example, 5-10% less) while still complying with OTA terms if you communicate it correctly.
- Use parity as a lever, not a limit: if an OTA requires parity, negotiate lower rates for your direct channel only during low-demand periods or for loyal customers.
- Automate updates: set pricing rules based on occupancy, lead time or forecast demand. That way, your direct channel will always have a competitive offer without manual intervention.
Citable data: comparison of distribution approaches
| Distribution strategy | Who it's ideal for | When to apply it |
|---|---|---|
| Direct sales only (booking engine) | Hotels with high organic demand or a loyal guest base | High season or when occupancy exceeds 80% |
| Balanced mix with channel manager | Hotels looking to reduce commissions without losing visibility | All year round, adjusting restrictions according to demand |
| Uncontrolled reliance on OTAs | Hotels with little online visibility or no direct strategy | Avoid in high season; only as an initial acquisition channel |
Avirato integrates channel manager, PMS and booking engine into a single platform. That means you can apply rate changes on one channel and see the effect on all others instantly. What's more, with a commission-free booking engine, every direct booking you generate immediately improves your margin.
These are some of the questions hoteliers often ask when considering reducing their reliance on OTAs:
Can I keep the OTAs and still reduce commissions?
Yes. The goal is not to eliminate the OTAs, but to balance the mix. With a channel manager to cut OTA commissions, you can keep the portals that bring you visibility and customers, while boosting your direct channel with better terms and capturing bookings without intermediary costs.
Is it legal to offer lower prices on my website?
In most cases, yes, as long as you don't breach any parity clauses you have signed with each OTA. Many current contracts allow lower prices on the direct channel for loyal customers or in membership programmes. Review your agreements and, if possible, negotiate more flexible terms.
What's the difference between a channel manager and a PMS with an integrated channel manager?
A standalone channel manager only syncs channels, whereas a PMS with an integrated channel manager like Avirato also centralises daily operations: bookings, payments, online check-in, revenue management and guest communication. The integration prevents duplication and data transfer errors.
How long does it take to see results after implementing a channel manager?
The first effects are seen within days: elimination of overbookings, time saved on manual updates and the ability to apply more aggressive pricing strategies. The reduction in commissions depends on the hotel's ability to convert its own traffic into direct bookings, something that is accelerated with an optimised booking engine.
How to start reducing commissions with Avirato
The first step is to analyse your current channel mix and calculate how much you pay in commissions per year. Then, request a demo of Avirato to see how multichannel synchronisation and the integrated booking engine work. It's not about abandoning the OTAs, but about regaining control of your distribution and your profitability.
If you want to try a platform that unifies channel manager, PMS and direct sales, request a free Avirato demo and discover how you can start reducing your OTA commissions from day one.
Frequently asked questions
Can I keep the OTAs and still reduce commissions?
Yes. The goal is not to eliminate the OTAs, but to balance the mix. With a channel manager to cut OTA commissions, you can keep the portals that bring you visibility and customers, while boosting your direct channel with better terms and capturing bookings without intermediary costs.
Is it legal to offer lower prices on my website?
In most cases, yes, as long as you don't breach any parity clauses you have signed with each OTA. Many current contracts allow lower prices on the direct channel for loyal customers or in membership programmes. Review your agreements and, if possible, negotiate more flexible terms.
What's the difference between a channel manager and a PMS with an integrated channel manager?
A standalone channel manager only syncs channels, whereas a PMS with an integrated channel manager like Avirato also centralises daily operations: bookings, payments, online check-in, revenue management and guest communication. The integration prevents duplication and data transfer errors.
How long does it take to see results after implementing a channel manager?
The first effects are seen within days: elimination of overbookings, time saved on manual updates and the ability to apply more aggressive pricing strategies. The reduction in commissions depends on the hotel's ability to convert its own traffic into direct bookings, something that is accelerated with an optimised booking engine.