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OTA-Hotel Reconciliation | Process

Reconciliation of Online Bookings | Reconciliation of OTA Bookings

OTAs provide customers two modes of payment to Book their rooms online i.e., Pay At Hotel and Pay Now.

Let's see how does reconciliation happen between the hotel and the OTAs in each of the above mentioned cases.

Reconciliation in case of Pay At Hotel Bookings
Let's take an example here.
Suppose the contract between a Hotel and the OTA is in the ratio of 80:20. It means that if a booking gets made at Rs 1000 then the hotel share on the booking will be Rs 800 and the OTA share on the booking will be Rs 200.

Reconciliation in Case of Pay At Hotel Booking happens as follows:

Guest NameBooking AmountHotel ShareOTA ShareAmount Collected by HotelAmount Collected by OTA
John10008002008000
Thomas2000160040016000
Total3000240060024000

This means that at the end of the month whenever the reconciliation happens, the hotel is liable to pay the OTAs their share of money. In this case the hotel will pay Rs 600 to the OTA!


Reconciliation in Case of Prepaid Booking happens as follows:

Guest NameBooking AmountHotel ShareOTA ShareAmount Collected by HotelAmount Collected by OTA
John100080020001000
Thomas2000160040002000
Total3000240060003000

This means that at the end of the month whenever the reconciliation happens, the OTA is liable to pay the Hotel their share of money. In this case the OTA will pay Rs 600 to the Hotel !





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