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Travel Agent Commissions and Owners

Added 4/28/00 - Version - 12.02 and Higher

Overview

RDP can be configured to charge condominium or timeshare owners a portion of travel agent commissions in one of the following ways:

  1. Owner pays the entire travel agent commission.
  2. Owner pays an equal share of the travel agent commission (i.e. - a 50/50 split).
  3. Owner pays a portion of the travel agent commission based on the owner pay code.

With option #3, the owner shares the travel agent commission expense based on the reservation's revenue split (the owner pay code).  For example, if the owner receives 65% of the reservation revenue, he would also be responsible for 65% of the travel agent commission.  

In previous RDP versions, if a reservation was in-house on a package transaction code, the owner paid travel agent commission expenses on incidental charges, even if he did not receive commission on incidental expenses.  

Use the scenario below as an example.

A reservation is in-house on the "Premium Golf Package".  This package transaction code has the following breakdown.

Component Price Bucket
Room $100 0
Golf Greens Fees $50 1
Golf Cart $20 1
Breakfast $10 2
Dinner $20 2

The owner is paid 65% of room revenue, he does not receive revenue for any incidental charges, i.e. -greens fees, golf cart, meals.  In this example, the owner pay code appears as:

The "OA" owner pay code specifies that the owner receives 65% of room revenue (bucket 0) and no commission on incidental charges that accrue to buckets 1 and 2.  

For the sample reservation on the "Premium Golf Package", a travel agent booking the reservation may receive 10% commission on the room portion and incidentals.  A sample travel agent commission code is seen below.

If the reservation specified is in-house for one night, the total charge (without tax) is $200 ($100 for rooms + $50 for greens fees + $20 for a golf cart + $30 for meals).  The travel agent receives a $20 commission ($200 x 10%).  However, since the owner receives 65% of room revenue ONLY, he should not be responsible for the travel agent commission on incidentals ($10 in this example).

Version 12.02 correctly computes the owner share of travel agent commissions by separating package transaction codes into the appropriate buckets, seen below.

Component Bucket Price TA Commission Percentage TA Commission Percentage Owner Revenue Percentage Owner Revenue Dollar Amount Owner Portion of TA Comm.
Rooms 0 $100 10% $10 65% $65 65% of $10, or
$6.50
Golf 1 $50 10% $5 0% $0 0
Cart 1 $20 10% $2 0% $0 0
Meals 2 $30 10% $3 0% $0 0
Total Travel Agent Commission:  $20

Total Owner Portion of Travel Agent Commission:

 $6.50

To Enable

Update to Version 12.02, revision #73.

To Disable

This feature is active in all Version 12.02 systems (revision #73 and higher).

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