Hosteeva Markup Calculation

Process Description for Generating Marked-up Fee

• Introduction: This document outlines the process for calculating the marked-up fee for accommodations listed on Hosteeva and other Online Travel Agencies (OTA), considering various factors such as channel commission, local tax rates, and Stripe fees.

• Factors in the Formula: The marked-up fee is determined based on three main factors:

  • Channel commission
  • Local tax percentage or flat amount
  • Payment Processor (Stripe, Squareup fees)

• Channel Commission:

  • OTAs operate on a commission-based model.
  • Commission rates vary among different OTAs:
    • Booking.com and Expedia: 15% (can rise to 18% or 21% based on sales plan)
    • Airbnb: 15%
    • Vrbo: 5% to 10%
    • FlipKey: 3%
  • Commission rates may vary based on partner programs, promotions, and accelerators.

• Local Tax:

  • The local tax rate is applied as a percentage of the total amount.
  • For example, in Gulf Shores, the local tax rate is 16%.

• Stripe Fee:

  • A Stripe fee of 3% is applicable for all channels except Airbnb, FlipKey, and Marriott, where the guest bears the fee.
  • For Booking.com, to maintain price consistency with Expedia, the 3% Stripe fee is included in the marked-up rate.

• Markup Based on Booking Channel:

  • The markup may vary depending on the booking channel.
  • Some channels charge guests directly, affecting the formula.

• Hosteeva = Vrbo Markup:

  • Generally, the Hosteeva markup aligns with Vrbo.
  • Exception: Gulf Coast area (Gulf Shores AL, Orange Beach AL, Pensacola FL, Pensacola Beach FL, Navarre FL, Perdido Key FL, Fort Walton Beach FL, Miramar Beach, FL).
  • Vrbo commission is 5%, which covers both initial and subsequent payments.

• Examples:

  • Vrbo:
    • Commission: 5%
    • Stripe Fee: 3%
    • Tax: 16%
    • Selling Fee-Rate: $104, Raw Rate: $80
    • Calculation:
    • $105 – 3% Stripe = $100.88
    • $100.88 – 5% Channel commission = $95.84
    • $95.84 – 16% Tax = $80.50
    • $80.50 (rounded down to $80)
  • Airbnb:
    • Commission: 15%
    • Selling  Fee-Rate: $95, Raw Rate: $80
    • Calculation:
    • $95 – 15% Channel commission = $80.75
    • $80.75 (rounded down $80)
  • Booking.com & Expedia:
    • Commission: 18%
    • Selling Fee-Rate: $121, Raw Rate: $80
    • Calculation:
    • $121 – 3% Stripe = $117.37
    • $117.37 – 18% Channel commission = $96.24
    • $96.24 – 16% Tax = $80.84
    • $80.84 (rounded down to $80)

This SOP ensures consistency and accuracy in determining the marked-up fee for accommodations listed on Hosteeva, considering various factors and channel-specific requirements.