Listed below are explanation of few pricing terms everyone should know in the vacation rental industry!
#1.Rate Plans or Pricing: Rate Plans is the means to define the rate of a property for a particular day. Rate can be defined per day or for a range of dates. The basic inputs for the pricing are From Date, To Date, price per day and Currency.
That was just the fundamentals of pricing. When it comes to the real world, customers expect a reduction in price for example when they stay longer. Here’s where Yield Rules come in picture. For example we can say if the user stays for a minimum of 7 days, they expect a 10% discount. If the user stays during the weekends, the price might increase by 15 % etc.
#2.Fee Structure
These are the additional Fees that adds to the price. For example Cleaning Fee, Pet Fee, Parking Fee etc. Fees may be mandatory or optional, or taxable or non-taxable. Fee might be applicable per-night or per-stay or per-night-per-person. Fee is related to property only and not related to a price.
#3.Taxes
Taxes are the local governing taxes expressed either in percentage or a flat value. In case of percentage, the distinction should be made whether to apply to the price alone or price-plus-fee. In most of the cases, taxes are calculated per stay basis.
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