{"id":22621,"date":"2020-04-10T16:47:34","date_gmt":"2020-04-10T16:47:34","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/margin\/"},"modified":"2024-12-23T09:21:19","modified_gmt":"2024-12-23T09:21:19","slug":"margin","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/margin","title":{"rendered":"Margin"},"content":{"rendered":"<p>What is the meaning \/ definition of Margin in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>Within revenue management in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel-industry\">hotel industry<\/a>, <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/margin\">Margin<\/a> is often used to refer to the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/commission\">commission<\/a> or fee <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/ota\">OTA<\/a> are making on your room rate.<\/p>\n<p>Here an example on how we can calculate the margin or commission fee a 3rd party travel agency website makes on the price of your <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/room-type\">hotel room<\/a>:\u00a0A room sells for 100\u20ac per night, and a guest books a one night <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/stay\">stay<\/a> on a OTA website the hotel works with. The total amount collected from the guest is 100\u20ac.\u00a0The OTA charges a 15% commission, which means you will have to pay him \u20ac15 and you will be left with \u20ac85.<\/p>\n<p>In case an OTA work on a commissionoable model, the guest will pay the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel\">hotel<\/a> directly, and a <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/commission\">commission<\/a> is charged by the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/ota\">OTA<\/a> to the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hotel\">hotel<\/a> upon completion of the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/stay\">stay<\/a>.<\/p>\n<p><strong>The Formula for the calculation OTA Margin is:<\/strong><\/p>\n<ul>\n<li>Margin in \u20ac\/$ = Room Rate x % Commission<\/li>\n<li>100\u20ac x 15% = 15\u20ac<\/li>\n<\/ul>\n<p><em>Note: Hotels should be aware that on cancelation or no-show fees they have to be careful to pay commission only over the fee charged to the guest and not the complete stay.<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>See also:<\/strong><\/p>\n<ul>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/markup\">Markup<\/a><\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/merchant-model\">Merchant Model<\/a><\/li>\n<\/ul>\n<p><strong>Synonyms<\/strong><\/p>\n<ul>\n<li>Margin<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of Margin in the  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,43],"tags":[],"class_list":["post-22621","post","type-post","status-publish","format-standard","hentry","category-glossary","category-m"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Margin Definition \/ Meaning - Xotels<\/title>\n<meta name=\"description\" content=\"Definition: Within revenue management in the hotel industry, Margin is often used to refer to the commission or fee OTA are making on your room rate.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.xotels.com\/en\/glossary\/margin\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Margin Definition \/ Meaning - Xotels\" \/>\n<meta property=\"og:description\" content=\"Definition: Within revenue management in the hotel industry, Margin is often used to refer to the commission or fee OTA are making on your room rate.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.xotels.com\/en\/glossary\/margin\" \/>\n<meta property=\"og:site_name\" content=\"Xotels\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-10T16:47:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-23T09:21:19+00:00\" \/>\n<meta name=\"author\" content=\"Patrick Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xotels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Patrick Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/margin#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/margin\"},\"author\":{\"name\":\"Patrick Landman\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#\\\/schema\\\/person\\\/f51e882bd553ae1b905fc0214cdca6f5\"},\"headline\":\"Margin\",\"datePublished\":\"2020-04-10T16:47:34+00:00\",\"dateModified\":\"2024-12-23T09:21:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/margin\"},\"wordCount\":199,\"publisher\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#organization\"},\"articleSection\":[\"Hotel Terminology &amp; 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