Additional Commission Calculation Options for use with Rebates / Convention Rebate
J
Julia Josephson
started a topic
about 2 years ago
Hotel Tampa Riverwalk has many groups that are part of city-wide events where the CVB has negotiated a rebate that is applicable to all overnight reservations related to the event. Groups are often then booked as part of that city-wide event by a Travel Agent at the hotel. The Travel Agent's commission is typically calculated on the room rate, and contracts generally state that the commission does not include the rebate. In other words, the rebate is subtracted from the group's room rate before commissions are calculated.
The rebate amount can either be a flat amount nightly or a flat amount per stay.
For example,
Group A is part of a large convention where a $10 rebate is offered per reservation to the hotel. Group A has 100 rooms booked for 2 nights that were booked by a Travel Agent at a 7% commissionable rate of $100.00 per night ($20,000 in room revenue). The 7% commission owed to the Travel Agent is contracted to be paid less the $10 per reservation rebate amount, so the final calculation for commission is ([Room Revenue minus Rebate] * 7% Commission).
Room Revenue: $20,000 (100 reservations x $100 rate x 2 nights)
Rebate Amount: $1,000 (100 reservations x $10)
Commission Amount: $1,330 ([$20,000-$1000]*.07)
With our current functionality, the Travel Agent can be added to the group reservations and calculate the 7% commission. In the Commissions module, the hotel will show that they owe the Travel Agent $1,400 ($20,000 x 7%). However, in reality they owe the Travel Agent only $1,330 because the rebate was not applied prior to the commission calculation.
Rather than manually editing commissions in the Commissions Module, the hotel would like the ability to automatically account for this - either with enhanced commission calculation options on the travel agent OR the ability to input the amount of the rebate (flat per stay or flat per night) on the group block as a whole that would then be applied to reduce the commissionable revenue for associated travel agents by that configured rebate amount.
Hotel Tampa Riverwalk has many groups that are part of city-wide events where the CVB has negotiated a rebate that is applicable to all overnight reservations related to the event. Groups are often then booked as part of that city-wide event by a Travel Agent at the hotel. The Travel Agent's commission is typically calculated on the room rate, and contracts generally state that the commission does not include the rebate. In other words, the rebate is subtracted from the group's room rate before commissions are calculated.
The rebate amount can either be a flat amount nightly or a flat amount per stay.
For example,
Group A is part of a large convention where a $10 rebate is offered per reservation to the hotel. Group A has 100 rooms booked for 2 nights that were booked by a Travel Agent at a 7% commissionable rate of $100.00 per night ($20,000 in room revenue). The 7% commission owed to the Travel Agent is contracted to be paid less the $10 per reservation rebate amount, so the final calculation for commission is ([Room Revenue minus Rebate] * 7% Commission).
With our current functionality, the Travel Agent can be added to the group reservations and calculate the 7% commission. In the Commissions module, the hotel will show that they owe the Travel Agent $1,400 ($20,000 x 7%). However, in reality they owe the Travel Agent only $1,330 because the rebate was not applied prior to the commission calculation.
Rather than manually editing commissions in the Commissions Module, the hotel would like the ability to automatically account for this - either with enhanced commission calculation options on the travel agent OR the ability to input the amount of the rebate (flat per stay or flat per night) on the group block as a whole that would then be applied to reduce the commissionable revenue for associated travel agents by that configured rebate amount.