rate multiplier
The formula for calculating the surcharge at the channel is wrong. Here is the explanation that I had with the Support Team. After that, they ask me to put it in here
many thanks for your feedback. And we can close the case. The problem in this case is that we have 2 different numbers and different situations. The way you explain it and hostfully do it it is right and not right.
I try to explain it:
I have a pizza and like to make my pizza 15% bigger. Than I use your Formular: 100 * 1.15 = 115. Than my pizza is 15% bigger as before. Perfect and it is right
But now the costumer say (Airbnb) from every Pizza that I sell i get 15% for my belly. But the costumer have still to get the same size pizza for him self 100.
The Point is that AIRBN take the 15% pizza from the bigger pizza and not from the smaller pizza
when AIRBNB take the 15% from the smaler pizza 100, than it it fits.
but AIRBN take the 15% from the bigger pizza. from the 115 pizza and than it is: 17.25 and that mean that the pizza by the costumer is not more 100 - it is 97.75.
but when i change the Formular to the right way:
100 / 85 * 100 = than i have 117.64.
And you see it in your own example that we have here 2 different situations. I have to increase my number to 18% that AIRBNB can take 15% commission and i don't loose money.
In German language i can explain it very easy but the in English we don't have the words, that is why it try it with the pizza
I wish you a blessed day
Thank you for your examples.
Let's take this as an example:
[$ 207 the night - 10 nights - are $ 2070
lets stay by 15% commission - than the commission is $310.50
Payout is $1759.50
But the price for the villa is $180 night x 10 days is $1800
so mean I get from AIRBN $ 1.759.50 and I have to pay to the owner $ 1.800. MEAN I lost $40.50]
In this example, I believe the Rate Multiplier is 15%, right? 180 * 1.15 = 207
How about increasing it to 18%? => Airbnb price for 10 nights is 180 * 1.15 * 10 = 2124
Airbnb Commission 15% => Host Payout is 2124 * 0.85 = 1805.4
So you get from Airbnb 1805.4 and you pay the owner 1800 => You won't lose anything
To be honest, I went through this situation before when I had to balance prices across channels & what I would receive after deducting Airbnb commission. Also I would need to think as a guest's view, using high rate multiplier might lead to less bookings.
It is general when we apply this formula for channel prices using our Rate Multiplier:
Price in Hostfully = 100
Rate Multiplier = 15%
Price on Channel = 100 + 100 * 15% = 100 * 1.15 = 115