Retail Model

Retail Model is an OTA distribution model in which the consumer-facing rate is identical to (or directly tied to) the hotel's published BAR. Unlike the merchant model — where the OTA marks up a net rate — the retail model passes through the hotel's price with the OTA collecting commission on top.

How it works

1. The hotel publishes a BAR via its CRS or channel manager.
2. The OTA displays that exact rate to consumers.
3. The guest books, the OTA either collects payment (merchant facilitation) or the hotel does (agency).
4. The OTA earns a commission on the sale.

Why it matters

The retail model is the dominant approach today on Booking.com and increasingly on Expedia. It is structurally aligned with rate parity: because the OTA isn't marking anything up, the consumer sees the same price across channels. For hotels, the retail model offers more transparency than the merchant model and easier rate management.

Retail vs merchant vs agency

• Retail — the pricing approach: rates pass through at BAR
• Merchant — the payment approach: OTA collects guest payment
• Agency — the payment approach: hotel collects guest payment

These dimensions are independent. A retail-rate booking can be either merchant-of-record (OTA collects) or agency-pay (hotel collects). Modern OTA contracts mix and match.