There are two types of channels used for calculating commissions: PRE and POST.
PRE: In this type, the channel deducts its commission before sending the booking to us, and we receive the remaining amount. Therefore, we must display the total amount paid by the guest, which is calculated as the Total Price in XML plus the channel's deducted commission.
POST: Here, we receive the full reservation amount upfront. After the guest checks out, the host calculates the invoices with the channels.
For example, Expedia operates as a PRE channel type. To calculate the commission for bookings where the channel has not pre-set a commission (such as SU), we use the following formula:
Actual Total Price = Total Price in XML ÷ (1 - (Channel Deal Percentage Per Booking ÷ 100))
Channel Commission = Actual Total Price - Total Price in XML
Note: This formula is a standard method we use for other organizations, and they are satisfied with it.
If discrepancies arise between our calculations and Expedia's, we propose two possible solutions:
The Channel Deal percentage might need adjustment.
Expedia's calculation method should be reviewed. They might be using a different or updated approach, and we may need to align with it.