When setting up your Travel agency contract, a field for the commission can be filled in.
This field is not mandatory, as it all depends on how you want to see the commission.
If you fill it in, the reservation price will not be affected, and only the reporting will show the amount paid to the Travel agencies.
If you would like to have a different price on the reservation, i.e., if the guest already paid the commission to the travel agency and only owes your property the rest, then you can add adjustments.
You can either create an Absolute adjustment or a Relative adjustment.
An Absolute adjustment will always be the same value.
- If the adjustment is 100, the reservation price will be adjusted by +100 (of whichever currency applies)
A relative adjustment will use a percentage value of the reservation price in the calculation.
- If the adjustment is 12%, the commission will vary based on the total reservation price.
If you want to adjust down, You will need to add a "-" (minus) symbol to the number
For those of you curious to calculate the commission in percentage, here is how it works:
Let's take the above example of 12%. If we received a reservation that will pay 100$
The 100$ is actually 88%.
This is simply obtained as 1 - 12% = 0.88 or 88%
To get the value to add to the 88% to obtain the original price follow the following formula:
12% / 88% or 0.12 / 0.88 = 13.64% or 0.1363636
Simply add this % to the price of the booking you received and you will have the amount paid to the Travel Agency.
100 + 13.64% = 113.64$
The options of the contract give you the possibility to include the cancellation fee in the estimate of the commission and/or to allow you to settle the travel agency's reservations manually.