Hotel Markups

Navigation: Master Entry → Hotel Markups

To load markup rules for any land segment.
There is a related functionality of a higher priority at customer profile at 'Fees' tab.

Customer-defined markups are taken into calculation is search rates forms, when the search is run for a specific customer.

Net rate here is a Sell rate, which B2B Company, as a tour-operator represents to its clients (travel agencies) as their Net rate. Calculation method for all land segments is changed, there is no markup on HC and contracts level anymore. The rates are returned according to the rules defined in inhouse Application (Travelwise.NET):

1. primarily according to the customer (Customer profile → 'Fees' tab see above);
2. and secondary according to the general markups at Master Entry → Hotel Markups - though it is named 'hotel', rules for any land segments can be set in this form.

Got rid of the rounding in a segment to the upper 5, rate is rounded to the higher integer. The calculation method of sell rate remains the same, but with a difference that customer's handling fee is treated in a segment and no additinal calculations are needed in Invoice, if any is set at customer' profile (Customer → 'Fees' tab), i. e. as it used to be Sell rate = Net rate (from supplier) * Exchange rate * Markup or Sell rate = Net rate (from supplier) * Exchange rate + HF.

One should note that old way of calculation was designed for B2B workflow as it calculated recommended sell price which is buying price for the end customer.
New scheme fits both B2B and B2C as the agent sell calculation is removed from inhouse Application and exists only in www.farewise.dk now.

Net rate (from supplier) * exchange rate * default HC markup (of 25% in most cases) = Recommended Sell Price
e.g. 100 USD * 7 *1.25 = 875
then when invoice was made, it took customer discount for particular product (e.g HTL) and customer paid some % less (having commission).
e.g. 875*0.9 = 787.5 = 790 (rounding)

Net rate (from supplier) * exchange rate * global or customer specific MU (or HF) (e.g. 12%) = Agent Net - the price for our customer
e.g. 100 usd * 7 *1.12 = 784 and now it rounds only up to nearest integer, not to 5.
This is final price saved on segment, and it goes to invoice.

The agent sell calculated in www.farewise.dk only now.

To be applied, markup should fit the segment type (product). There are 6 types of products: one per a segment type or all.
Geographic is optional, the more specific the more prioritized, e.g. a rule made for BKK has more priority than Thailand rule.
Amount type and Amount is markup itself.
Supplier if empty, it means that the rule is applied to all suppliers.

In order to get agent sell, settings from farewise are used (defined by travel agency).
Agent sell is not stored in the DB, so changed to those settings affect all existing bookings of the agent (agent sell becomes changed). Read more... (description for Billetkontoret A/S).