Distribution & Channel Management
Net vs. Gross Revenue: The Number That Actually Matters
Gross ADR is what you charge. Net ADR is what you keep. Most hotel reporting stops at the first number.
4 min read
Channel cost analysis means calculating the true net revenue of each booking after all distribution costs — OTA commission, GDS fees, credit card processing, loyalty point redemption, and CRS charges. A booking at €200 through a 20% commission OTA yields €160.
The same booking at €185 through the direct channel, after a 3% card processing fee, yields €179. The direct booking is worth €19 more per room, every night, across every property in your portfolio.
Running this analysis systematically — by channel, by segment, by property, by season — reveals the true cost of your distribution mix and makes the ROI of direct booking investment visible and defensible.