How to calculate and automatically apply the Net rate to an OTA reservation when only the Gross Rate is received. 

Overview

An OTA Commission with a NET Multiplier refers to the commission charged by an Online Travel Agent (OTA) on a reservation, with the NET Multiplier used to calculate the property’s net rate after the commission is deducted.

When the property sets a commission for an OTA, the NET Multiplier helps adjust the rates to ensure the property receives the desired amount after the OTA’s commission is subtracted. For example, if the property wants to receive a specific amount after the OTA takes its commission, the NET Multiplier allows the property to set the original rate, ensuring that the commission is accounted for, without needing to create a separate net rate in the system. This streamlines the process and ensures accurate financial tracking.

OTA Commission Configuration

1. Navigate to Setup > Online Bookings > Channel Management.
2. Select the Property.
3. Highlight the Online Travel Agent Channel.
4. Choose the 'Edit' button.

1. Navigate to the 'Connection Information' menu.
2. Proceed to the 'Travel Agent Information' section.
3. Select 'Add' in the Agent Commission Setup box.

1. Select a Commission Type.
2. Select a Sundry Charge.
3. Select the Collect Type.
4. Enter the Commission Amount.
5. Enter the No Greater Than Amount.
6. Enter the NET Multiplier for the Commission Amount entered.
7. Select the 'Save & Exit' icon.

NET Multiplier Calculation

The following formula can be used to calculate the correct NET Multiplier based on the commission amount.

• Base Price Percentage: 100% Rate - 12% Commission = 88% Base Price Percentage.
• Base Price Divisor: 88 / 100 = 0.88
• Retail Price: $100 / 0.88 = $113.64 (113.6363636363636‬ rounded to 2 decimal places).
• Multiplier: (100 / 0.88) / 100 = 1.1364 (1.136363636363636 rounded to 4 decimal places).
• Gross Rate: $100 * 1.1364 = $113.64

See NET Multiplier Examples for examples of the Net Multiplier for various commission amounts and the formula for calculating them.

Related Articles

• Channel Agent Commission Setup on a Channel Management Connection
• Net Multiplier Examples
• Travel Agent Commission
• Channel Connection