Direct Booking or Platforms: the Real Cost of Commissions for a Riad

Taken in isolation, a platform commission looks reasonable: fifteen, eighteen, or twenty-two percent on a night, in exchange for global visibility. The problem appears when you apply that percentage to all the nights in a year. On a riad that runs well, the amount paid to the platforms often equals the cost of a renovation, a hire, or a structural investment. The comparison between direct booking and platform booking deserves to be made with numbers, not by feel.

How Much a Platform Booking Really Costs

The displayed commission isn't the only cost. On top of the base commission, generally between fifteen and twenty percent, there are often paid options to improve visibility, platform loyalty programs funded by the property, and sometimes payment processing fees. The total cost of a platform booking frequently exceeds twenty percent of the night's amount, once everything is added up.

How Much a Direct Booking Costs

A booking made on the riad's website only bears bank payment fees, generally around two to three percent, plus an amortized share of the website and tools cost. Over time, as the volume of direct bookings grows, the unit cost of a direct booking falls, while a platform booking's cost stays constant as a percentage. The gap widens mechanically in favor of direct.

The Math Over a Typical Year

Take a riad doing several hundred nights a year, at a given average rate. If nearly all of them go through the platforms at an average commission of eighteen percent, the amount paid over the year is considerable. If, thanks to a booking website and visibility work, a significant share of those nights shifts to direct, the commission saved on that share generally covers the website investment within a few months, then generates a net saving every following year.

At What Volume a Booking Website Becomes Profitable

There's no universal threshold, but the logic is simple: as soon as the annual commission paid to platforms exceeds several times the cost of a booking website and its maintenance, the investment is justified. For most riads with a decent occupancy rate, this threshold is comfortably reached, and the website is recouped in under a year. We describe a concrete case in our case study on increasing a riad's direct bookings.

The Non-Quantifiable Benefits of Direct Booking

Beyond the commission, direct booking brings advantages that are hard to quantify but very real: the relationship with the customer, who can be retained and re-engaged; control over cancellation terms and pricing policy; no dependence on an unstable ranking; and a customer database that becomes a business asset. These don't appear in the commission calculation but weigh heavily in the riad's value.

Why Keep the Platforms Anyway

Direct booking doesn't fully replace the platforms, especially at first. Booking and Airbnb bring discovery, notably among international travelers who don't know the riad yet. The goal isn't to cut off this source, but to gradually raise the direct share to rebalance, reduce the average commission across all nights, and gain independence.

How to Shift a Share of Bookings to Direct

Three main levers: a direct rate slightly more attractive, clearly displayed on the website; a more flexible cancellation policy than elsewhere; and worked-on visibility so the traveler searching for the riad by name finds the website first. Add to that discreet follow-ups after a first stay inviting a return direct booking. It's the combination of these levers, not any single one, that raises the direct share over time.

Don't Forget Payment and Currency Fees

Even direct, a booking has a cost. Online payment fees, often around two to three percent, apply to every transaction. For an international clientele, currency conversion fees can be added depending on the payment solution chosen. These fees stay well below a platform commission, but they need to be factored into the calculation for an honest comparison, and a payment solution suited to the riad's clientele profile should be chosen.

Communicating the Direct Advantage Without Getting Into Trouble

It's possible to promote direct booking without breaking the platforms' rules. On its website, in its emails, on its Google listing, and on its social media, the riad can freely explain the advantages of direct booking: better rate, more flexible terms, direct contact with the team. What's governed is displaying a lower rate on a platform's listing itself, not the riad's communication on its own channels.

FAQ

Can you display a price cheaper on your site than on the platforms?

On your own website, yes; it's one of the most effective ways to steer the traveler toward direct booking.

Do platforms penalize a riad that grows its direct share?

They govern rate display on their own channel, but they have no visibility into what a riad does elsewhere on its website.

How long to recoup a booking website?

For a riad with a decent occupancy rate, recoupment generally happens in under a year thanks to commissions saved.

Do you need to lower your prices to sell direct?

No, a slight rate advantage and better terms are often enough, with the margin recovered from the commission funding that gap.

Brandora helps Moroccan riads grow direct booking and reduce the weight of commissions. Discover our approach or let's talk about your riad's numbers.