How to calculate and automatically apply the Gross rate to an OTA reservation when only the Net 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 convert the net rate the channel sends into the gross rate held on the reservation. The OTA still remits the property its net amount; the multiplier is what makes the reservation show the sell value rather than the net one.

Where a channel deals in net rates, the booking reaches RMS at the net amount. The multiplier grosses that figure up as the booking arrives, so the property does not need to build a separate net rate in RMS, and its reporting still shows the sell value. It is applied to the rate the channel sends to RMS, not to the rate RMS sends out, and RMS records the adjustment in the reservation's audit trail.

Please Note! RMS is highly configurable. Some Terminology, User Access & Permissions, Images, Labels, and Functions used in these articles may differ from your setup. CLICK HERE to find out more.

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.

Tip! In this example we are using a 12% 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