# RevPAR Optimization & Channel Strategy

RevPAR (Revenue Per Available Room) is the north-star metric for hotel revenue management. But raw RevPAR tells an incomplete story. A $200 RevPAR from direct bookings is worth far more than $200 RevPAR through an OTA charging 18-25% commission. AI helps you optimize for net RevPAR — the revenue that actually reaches your bottom line.

Channel Profitability Analysis

Every booking channel has a different cost structure:

| Channel | Typical Commission | Net on $200 Rate | |---------|-------------------|-------------------| | Direct website | 3-5% (payment processing) | $190-194 | | Brand.com central | 8-12% | $176-184 | | OTA (Booking, Expedia) | 15-25% | $150-170 | | Wholesale/opaque | 25-40% | $120-150 | | GDS corporate | 10-15% + fees | $170-180 |