Negotiating with Big OTAs
Lesson 5 / 10Renegotiating commission

When to ask, who to ask, what to ask for

Commission renegotiation is the single conversation that moves the most money at the operator level. A 1.5-point reduction across a €30M-revenue portfolio is €450k a year. Operators ask for it badly — wrong timing, wrong counterpart, wrong ask structure — and walk away with 0.25 points and a vague promise of "review next year." The mechanics of asking properly are not complicated. They are just not what the OTA wants you to know.

When to ask

Three windows produce the highest hit rate. (1) 90-120 days before contract renewal, when the KAM has internal pressure to retain the volume and can justify a concession to their commercial committee. (2) Immediately after a strong performance quarter where you can show 18-25% YoY growth on the OTA — they want to keep the trajectory. (3) When the KAM changes — new KAMs need a win in their first 90 days and have more latitude to grant one to a portfolio they are inheriting.

Worst time to ask: mid-contract with no specific trigger, in November-December when KAMs are closing the year, or immediately after a parity dispute when the relationship is fragile. The ask gets dismissed and you have spent your "ask capital" for the cycle.

Who to ask

Your KAM is the messenger, not the decision-maker. KAMs at Booking.com, Expedia, and Agoda typically have authority to grant 0.25-0.5 points of commission concession without escalation. For 1-2 points, the request goes to the Regional Commercial Director. For 2+ points or for any change to the base commission tier, it goes to the Strategic Account Director or equivalent.

The mistake operators make: pitching the full ask to the KAM, who has no authority to grant it. The KAM dutifully escalates, the request gets watered down in transit ("the operator would settle for 1 point"), and you end up negotiating against a position you never took. Better approach: tell the KAM the size of the ask and request a meeting with the person who can approve it. KAMs respect this — it makes their job easier.

What to ask for — the structure

A commission ask should always be a package, not a single number. The package gives the OTA optionality and gives you negotiating room. A 4-property operator with €18M in OTA revenue might bring this package to renewal:

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The OTA cannot say no to all four options. They will pick the one cheapest for them and grant it. You exit with a real improvement on terms that matter to your P&L. The contract is also re-architected for the next cycle. That re-architecture is often more valuable than the commission concession itself.

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When to ask, who to ask, what to ask for · Negotiating with Big OTAs · OtelCiro Academy