notitur.com August 24, 2026

Distribution

Agency model

In the agency model, the guest pays at the hotel and the hotel later settles the commission with the OTA. The hotel keeps the payment, the guest data and control of cancellations. It is Booking.com's classic model and gives the hotelier more room to maneuver than the merchant model.

Example In the agency model, the guest pays on departure and the hotel pays Booking its commission at month end.

Related terms

Distribution

Merchant model

In the merchant model, the OTA charges the guest upfront and then pays the hotel its net rate, keeping the...

 Distribution

OTA

An online travel agency is a channel that sells accommodation and travel online in exchange for a commission....

 Distribution

Commission

Commission is the percentage a channel keeps for each booking it brings the hotel. It is the cost of selling...

 Distribution

Direct booking

A direct booking is one the guest makes through the hotel's own channels, with no middleman. It saves the OTA...

FAQ

What is the agency model in hospitality?
It is a booking system where the guest pays the hotel directly upon stay, and the hotel later settles the commission with the OTA. This is the classic model used by Booking.com and gives the hotel control over payment, guest data, and cancellations.
How does the agency model work?
The hotel invoices and collects payment from the guest at check-in or check-out, then pays the agreed commission to the agency. For example, if a guest pays 100 euros at the front desk, the hotel keeps the 100 and later sends, say, 15 euros to the OTA.
How is the agency model different from the merchant model?
In the agency model the hotel collects payment and manages cancellations, whereas in the merchant model the OTA charges the guest upfront and pays the hotel the net amount. The agency model gives the hotel more flexibility, such as modifying a booking without involving the platform.

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