About This Hotel Revenue & ROI Calculator for Indian Properties
This Hotel Revenue & ROI Calculator is built specifically for independent hotels, resorts, homestays, and budget-to-midscale properties operating in India. Running a profitable property here means balancing occupancy, Average Daily Rate (ADR), and the commission cut taken by OTAs such as MakeMyTrip, Goibibo, Booking.com, and Agoda. This tool gives you an instant, transparent breakdown — in Indian Rupees — of your property's earning potential, and shows exactly how much moving bookings to a direct channel can add back to your bottom line.
How to Use This Tool
- Enter Total Room Count: The total number of sellable rooms or keys in your property.
- Set Average Occupancy Rate: Your trailing 12-month average occupancy, or a seasonal estimate (peak season vs. monsoon/off-season vary significantly for most Indian markets).
- Enter Average Daily Rate (ADR): The average rate paid per occupied room per night, in ₹, across all channels.
- Define OTA Booking Share: The percentage of your current bookings arriving via OTAs versus your own direct channels (website, walk-ins, phone).
- Set OTA Commission & Software Cost: The average commission slab charged by your primary OTAs (commonly 15%–25% in India) and your monthly PMS/booking-engine spend.
Understanding the Inputs
- Total Rooms: Your property's baseline sellable capacity.
- Occupancy Rate (%): Rooms sold divided by rooms available, over a given period.
- ADR (₹): Total room revenue divided by rooms sold.
- OTA Share (%): Share of bookings subject to third-party commissions.
- OTA Commission (%): The cut deducted by the OTA before payout reaches you.
Interpreting the Outputs
- Gross Annual Revenue: Total top-line room revenue before commissions or operating costs.
- RevPAR: ADR × Occupancy Rate — the standard industry metric for room-yield efficiency.
- Annual OTA Commissions: Total ₹ paid out to OTAs each year.
- Direct Savings Projection: Estimated annual profit recovered by shifting 30% of OTA bookings to your direct engine.
Why Direct Bookings Matter for Indian Hotels
Properties that lean heavily on OTAs routinely give up ₹15–₹25 out of every ₹100 earned in commission fees alone — before payment gateway charges or GST considerations. A well-integrated direct booking engine on your own website, paired with a modern hotel PMS, lets guests book straight with you at zero commission.
As the projections above show, converting even a modest share of OTA-driven traffic into direct, commission-free reservations can add lakhs of rupees in annual savings — often paying for your entire PMS subscription many times over.
Frequently Asked Questions
How do I calculate RevPAR for my hotel in India?
Multiply your Average Daily Rate (ADR) by your occupancy rate. For example, an ADR of ₹3,500 at 65% occupancy gives a RevPAR of ₹2,275 per available room, per night.
How much commission do MakeMyTrip, Goibibo, and Booking.com charge?
OTA commissions for Indian hotels typically range from 15% to 25% per booking, depending on your property category, contracted slab, and the season.
How can I reduce OTA dependency and commission costs?
Invest in a direct booking engine linked to your website, maintain rate parity so guests trust booking direct, run a simple loyalty or repeat-guest offer, and use a PMS that consolidates all your channels so you can track and shift booking mix over time.