Room Rate Pricing Formula
Base (cost-plus) rate =
CPOR / (1 - Target margin %)
Seasonal rate =
Base rate x Seasonal multiplier
Net rate after OTA =
Seasonal rate x (1 - OTA commission %)
Requires: Target margin < 100%Caricamento...
Hotel & Hospitality
Build a defensible room rate from the cost up. Enter your cost per occupied room, target margin, expected occupancy, seasonal multiplier and OTA commission to get the recommended rate, the seasonal rate, the net rate after commissions and your expected ADR.
Base (cost-plus) rate =
CPOR / (1 - Target margin %)
Seasonal rate =
Base rate x Seasonal multiplier
Net rate after OTA =
Seasonal rate x (1 - OTA commission %)
Requires: Target margin < 100%Cost-plus pricing starts from your cost per occupied room (CPOR) and marks it up to hit a target margin: base rate = CPOR / (1 - target margin %). For example, a CPOR of €27 with a 70% target margin gives a base rate of 27 / 0.30 = €90. You then adjust that base rate for season and net out distribution commissions to arrive at the rate you actually publish.
A seasonal multiplier scales your base rate up or down according to demand. Low season might use a multiplier below 1 (e.g. 0.9), shoulder season around 1, and high season above 1 (e.g. 1.4). Applying the multiplier to the cost-plus base rate lets you capture more margin when demand is strong and stay competitive when it is weak, without ever pricing below your cost foundation.
Online travel agencies (Booking.com, Expedia and others) typically take 15-25% of the booking value as commission. That commission comes off the rate the guest pays, so your net revenue is rate x (1 - OTA %). To protect your margin you must price gross of commission: the calculator shows both the published rate and the net rate after OTA fees so you can see what actually reaches your bank account.
Expected ADR is the average rate you realistically expect to achieve once you account for the mix of seasons and channels you sell through, weighted by expected occupancy. It is a more honest planning number than a single headline rate because it blends high and low season pricing and the dilution from OTA commissions. The calculator derives it from your inputs so you can plug it straight into RevPAR and break-even planning.
It can be. Beyond roughly 25-30% the calculator flags the commission as high, but OTAs deliver demand you might not capture directly, especially for new or low-awareness properties. The right approach is to compare the net rate after commission against your CPOR: as long as the net rate comfortably exceeds your cost per occupied room, an OTA booking still contributes. Use direct channels to win back margin where you can.