Operators pay over $1bn a year in OTA fees on repeat guests, study finds

Worldwide: Property managers are paying more than $1bn a year in commission fees to online travel agencies (OTAs) on repeat guests, according to new analysis from hostAI.

The study, which analysed more than 230,000 bookings from 115 operators worldwide, found that most repeat bookings continue to be made through platforms such as Airbnb, Vrbo and Booking.com, despite guests having already stayed with the property.

hostAI found that around 77 per cent of repeat guest revenue flows through OTAs, resulting in commission costs of between 12 and 20 per cent on customers operators have already acquired. The company refers to this as “repeat guest leakage”, where revenue from loyal guests is lost to third-party platforms.

Repeat guests account for between one and 26 per cent of total booking revenue, with a median of five per cent. Operators with weaker direct booking strategies were found to lose the highest share of repeat revenue to OTAs, while those with stronger direct channels significantly reduced commission leakage.

The analysis also shows that the channel through which a guest first books plays a key role in future behaviour. Around 86 per cent of guests who booked directly returned via the same channel, compared with almost 89 per cent of guests who first booked via Airbnb.

Amirali Mohajer, CEO and founder of hostAI, said many operators are unaware of how many of their guests are repeat customers or why they continue to rebook through OTAs.

The study also found that larger operators tend to lose a greater proportion of repeat revenue to OTAs, while smaller operators are often better placed to retain loyal customers.

The analysis is based on 231,150 confirmed bookings from 2025, covering operators with portfolios ranging from one to 588 properties.

Highlights:

Short-term rental operators pay over $1bn a year in OTA fees.

Majority of repeat bookings still made through OTAs.

Direct booking channels reduce commission leakage.

First booking channel shapes repeat guest behaviour.