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 Name	Booking Amount	Hotel Share	OTA Share	Amount Collected by Hotel	Amount Collected by OTA
John	1000	800	200	800	0
Thomas	2000	1600	400	1600	0
Total	3000	2400	600	2400	0

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 Name	Booking Amount	Hotel Share	OTA Share	Amount Collected by Hotel	Amount Collected by OTA
John	1000	800	200	0	1000
Thomas	2000	1600	400	0	2000
Total	3000	2400	600	0	3000

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 !