How does Mews calculate commissions for travel agency contracts?

You can set up two types of commissions for a travel agency:

 

• Commissions that are included in the price
• Commissions that are excluded from the price

 

Mews calculates the commission differently for each scenario, and this calculation is used for reporting only (it does not affect the price of the reservation).

 

Note: Commissions are indicated when creating a travel agency contract. You can learn more about how to set up a travel agency contract in this guide.

 

Commissions that are included in the price

 

If the commission is included in the price, Mews calculates this commission as a simple percentage of the total price.

 

For example: If the total price is €100 and the commission is a relative adjustment of 12%, then the commission is €12.

 

Commissions that are excluded from the price

 

If the commission is not included in the price, Mews calculates this commission as follows:

 

For example: If the total price is €100 and the commission is a relative adjustment of 12%, Mews considers that the €100 is actually €88 (obtained by doing the following formula: 1 - 12% = 0.88 or 88%).

 

To obtain the total amount paid to the travel agency, Mews uses this formula:

 

• 12% / 88% or 0.12 / 0.88 = 13.64% (or 0.1363636)
• And add this number to the price of the booking: €100 +13.64% = €113.64.