Sometimes you would want to set custom conversion rate for specific channel so that your default myfrontdesk rate converts to the OTA currency according to the conversion rate you set manually. This is especially popular in Central European countries which currencies are not supported in Booking.com or Hostelworld and the automatic exchange rate may not be always beneficial.
This article explains how to set custom conversion rate to be sent to OTA and its limitations.
Before proceeding to custom conversion rate setup - be aware that it only applies for sending updates to the channel, not for importing bookings
Currently there's no page in myfrontdesk where you can set custom conversion rate (*it's in development), however this page is available in myallocator - a channel manager for myfrontdesk. If you want to setup custom conversion rates for the OTAs, contact our Support team to provide you access to myallocator or to setup custom conversion rates for you.
Here's how you setup custom conversion rates from myallocator:
1. Once you gain access to myallocator from our Support team, go to "Currency" page
2. Scroll down to "Custom Conversion Rates" section
3. Remove the checkmark in "Automatic" column next to the currencies you want to set custom conversion rate for
4. Enter the custom conversion rate
Save the changes
- Let's say your myfrontdesk default currency is RSD
- Your Booking.com account currency is EUR
- You set up currency for Booking.com in myfrontdesk to EUR
- You setup custom conversion rate where 1 RSD = 0.0083333334 EUR
1. Your room cost in myfrontdesk is 3,840.00 RSD
2. With the custom conversion rate 1 RSD = 0.0083333334 EUR, its price should be 3,840.00 RSD = 32.000000256 EUR.
3. 32 EUR is the price which will be sent to booking.com
Please note that OTA will still apply automatic conversion rate if the guest will select currency different from your hotel default currency. And it's not possible to control OTAs conversion rates from our side
For example, the guest will book not in EUR, but in USD, which will convert the rate to $36:
4. The guest makes a booking for 32 EUR (*If the guest books a room in currency different from your OTA default currency, it will be converted to your default currency by OTA and then will be sent to myallocator. In this example - booking.com will convert again the booking from 36 USD to EUR with their conversion rate, and will send 32 EUR to myallocator)
5. Myfrontdesk will convert the booking rate sent by OTA back to RSD but applying automatic conversion rate
Literally, that means that custom conversion rate only applies for sending updates to the channel, not for importing bookings
After automatic conversion the booking will be displayed in myfrontdesk with the Sub Total 3810.96 RSD (that differs from original room rate 3,840.00 RSD)
There are reasons why myfrontdesk doesn't apply custom conversion rate when receiving the booking:
- most of OTAs do not allow custom conversion rate and use automatic one, mostly because the guest will check the conversion rate in other sources while making the booking, and may not be aware about your custom rates
- while testing how could applying custom conversion rate work when receiving the booking - still gives the difference between original room rate and room rate received from the OTA, in case the guest books with the currency different from your default OTA currency, as it will be converted using OTA automatic conversion rate. For example, you control conversion rate for EUR, but the guest will book in USD. The conversion rate of USD to EUR on OTA is controlled by OTA, and not myfrontdesk
1) Use your default OTA currency as myfrontdesk currency.
For example, instead of RSD - use EUR as the account currency and do not use custom conversion rates. We are also working on supporting multi-currency payments in myfrontdesk, which may partially resolve a problem with the account being in popular currency and payments made in your local currency.
2) Apply exclusive fee to the bookings from certain OTAs.
You can take the difference between original room rate and imported room rate from OTA, then calculate what is the percentage of room rate this amount is, create it as exclusive fee and apply to all sources where conversion issue might occur so you do not lose the revenue. This will not, however, resolve the issue with imported room rate 100% perfectly matching the initial room rate.
3) Turn off custom conversion rate and use automatic conversion rate only.
That would resolve all the issues with manual adjustments. The only problem is potentially losing revenue. So as a workaround daily review on room rates will probably be required.
4) Adjust the rate manually by either editing the rate or adding adjustment.
Please be aware that your guests should be notified about the changes, this may also create misunderstandings for the guests who checked the conversion rate while booking on OTA and when checkin-in