1 Reply Latest reply on Mar 7, 2019 3:17 AM by Nemoto Akito - Oracle-Oracle

    Commission on rates including packages

    Nemoto Akito - Oracle-Oracle

      The Goring are struggling to handle a commissions issue. They have one TA with whom they have agreed that they will pay commission on an entire rate not just accommodation. They have also agreed that they will include breakfast for guests booked through this TA regardless of what rate code is booked. Therefore they add the breakfast package element to a booking as included. So for a £100 rate that is normally room only they have a £20 breakfast allowance now included. They are struggling to get commission calculated on the £100 value - it takes the package out of the calculation and calculates commission on £80. What is the right way to handle this as they have been working on some very "creative" approaches (which don't work!) but I am sure there is something easier...

        • 1. Re: Commission on rates including packages
          Nemoto Akito - Oracle-Oracle

          Please look at the three samples on this page that can be shared with the customer:

           

          https://docs.oracle.com/cd/E53533_01/opera_5_05_00_core_help/commission_codes.htm

           

          Depends a little bit on the specific configuration but at first sight they need to check their commision codes.

           

          Most likely the wrapper code is not part of the configuration.

           

          Please either ask them to read this carefully and apply the changes or suggest them to contract some short Consulting time.

           

          Calculating Commissions when Rate Code Includes a Package

           

          Commissions are sometimes based on room revenue alone, or on room revenue and revenue from selected other transactions that may be included in packages. When the rate code attached to a reservation includes one or more packages as well as lodging, OPERA is able to separate out the amounts attributed to specific transaction codes in order to compute commissions that conform to the configuration of the applicable commission code.

           

          The following scenarios give examples of how commissions are calculated when the rate code attached to a reservation includes a package.

           

          Note: When a wrapper transaction code is attached to the rate code, it groups the lodging transaction code and package element transaction code(s) under one transaction code.

           

          Example 1

           

          Rate Code: B&B

          Rate Amount: $150

          Accommodation Transaction Code: 1000

          Package Transaction Code: 9300 (wrapper)

          Package: BFST $30 (included in rate)

          Commission Code: 10%

          Transaction Codes Included in Commission Code: 1000

            Sun Seekers Travel is attached to the guest's reservation. Sun Seekers is eligible for a 10% commission on transaction code 1000. The guest stays for one night on a reservation having rate code B&B. Following check out and end of day processing, the commission amount to be paid to Sun Seekers is $12. This is 10% of the $120 room revenue. The $30 BFST package charge is not commissionable because the wrapper transaction code is not included in the commission code configuration.

           

          Example 2

           

          Rate Code: GOLF

          Rate Amount: $200

          Accommodation Transaction Code: 1000

          Package Transaction Code: 9300 (wrapper)

          Package: CLUB $75

          Commission Code: 15%

          Transaction Codes Included in Commission Code: 1000, 9300

           

          Spree Travel is attached to the guest's reservation. Spree is eligible for a 15% commission on transaction codes 1000 and 9300. The guest stays for one night on a reservation having rate code GOLF. Following check out and end of day processing, the commission amount to be paid to Spree is $30. This is 15% of the total accommodation and CLUB package rate of $200 for which Spree is eligible because the wrapper transaction code is included in the commission code configuration.

           

          Example 3

           

          Rate Code: HOLIDAY

          Rate Amount: $300

          Accommodation Transaction Code: 1000

          Package Transaction Code: 9300 (wrapper)

          Package: SPA $100 (transaction code 1270)

          Commission Code: 10%

          Transaction Codes Included in Commission Code: 1000, 9300, 1270

           

          GetAway Travel is attached to the guest's reservation. GetAway is eligible for a 10% commission on transaction codes 1000, 9300, and 1270. The guest stays for one night on a reservation having rate code HOLIDAY. The guest also posts an additional charge of $50 to transaction code 1270. Following check out and end of day processing, the commission amount to be paid to GetAway is $35. This is 10% of the $300 total accommodation and SPA package amount covered by the 9300 wrapper transaction code, plus 10% of the $50 additional SPA revenue because transaction code 1270 is included separately in the commission code configuration