Formula - How to match your payout? Follow
Create a formula that matches your payout
One of the main requests we receive is how to create a formula that will calculate your payout. By payout, we mean the value that you get after commission and payment fees.
We do NOT take into consideration the taxes that OTA sends to us. The reason is that every channel is different.
That is why we have built New Taxes. We will use New Taxes to calculate taxes in Financial Reporting. (We use New Taxes to calculate taxes for Hostaway channel and plan to use this for Vrbo calculation too).
You can read this article about New Taxes to learn more.
Note: If the OTA takes taxes, it will not be included in the Total Reservation.
Some important fields
- hostChannelFee: This is the commission the channels charge you. For Vrbo, Hostaway calculate it
BookingcomPaymentProcessingFee will take the percentage commission you pay Booking for this service.
PaymentServiceProcessingFees will take the Stripe commission you paid to charge this guest.
- Weekly/Monthly Discount: This is in Listing > Edit > Price and Fees
Learn more on how to create a formula for a specific channel and then add these formulas to make one.
The payout per channel
Payout for Hostaway Channels (Direct, BookingEngine, WordPress)
In general, the reservation total includes: BaseRate + CleaningFee + Taxes.
That said, you edit a reservation and include Fees, Discount Coupon, Weekly/Monthly Discount etc.
On a reservation level, you can find the breakdown:
You can check this article to find more information on reservation breakdown and fees/discounts.
Payout for Airbnb
Since Airbnb takes the payment for you, there is no need to add Payment fees.
Formula: BaseRate + CleaningFees + PricePerPerson (+other fees) + Taxes - hostChannelFee.
We saw that in some cases that the Airbnb Total Reservation includes also:
- Taxes > Sometimes Airbnb sends taxes to you
If you wish to calculate for cancelled reservations, please read the Financial Reporting FAQ.
Payout for Booking.com
For Booking.com, it depends if you use Booking.com Payment service or not.
- Booking.com manages payments: ((baseRate + priceForExtraPerson + cleaningFee) + totalTaxes) - hostChannelFee - bookingcomPaymentProcessingFee
- Booking.com doesn't manage payments: ((baseRate + priceForExtraPerson + cleaningFee) + totalTaxes) - hostChannelFee - paymentServiceProcessingFees
Payout for Vrbo
For Vrbo, one of the main differences is that Hostaway calculates the HostChannelFee.
Go to Listing > edit > Price and Fees > VRBO host channel fee. It will calculate the Vrbo commission on the Base Rate and other fees.
Please note that it will only calculate for newly received reservations.
- Vrbo: ((baseRate + priceForExtraPerson + cleaningFee) + totalTaxes) - paymentServiceProcessingFees - hostChannelFee
Payout for Expedia
For Expedia, it depends if Expedia takes payment for you or not.
- BaseRate + Cleaningfee (+otherFees) - ((BaseRate+CleaningFee)* Your Expedia commission) % + TotalTax - paymentServiceProcessingFees)
To make it either to calculate Expedia Commission, you can create a formula: (BaseRate + Cleaningfee) * your Expedia commission. So then you can use this formula for your calculation which will be easier and look like: BaseRate + Cleaningfee + The formula you calculated + TotalTax - paymentServiceProcessingFees
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