Net Revenue
Net revenue is the income a property manager or owner retains after deducting OTA commissions, payment processing fees, channel costs, and any platform-related charges from gross booking revenue. It represents the true top-line income available to cover operating expenses and generate profit. Calculating net revenue accurately requires tracking commission rates across different booking channels, which can vary significantly — from around 3% on Airbnb host-only fee to 15% or more on Booking.com. Property managers who shift a greater share of bookings to direct channels or negotiate lower commission tiers can meaningfully improve net revenue without increasing occupancy or rates. Financial reporting tools within a PMS like Hostaway automate net revenue calculations across all channels.
Frequently Asked Questions
How do you calculate net revenue for vacation rentals?
How can I improve net revenue without increasing occupancy?
What is a good net revenue margin for vacation rental managers?
How does channel mix affect net revenue in vacation rentals?
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