Set up taxes and fees by accommodation type

This new feature significantly expands your flexibility, allowing you to tailor tax and fee application based on the specific accommodation types booked by your guests. This is crucial for adhering to diverse local regulations and optimizing your pricing strategies.

Why Apply Taxes and Fees by Accommodation Type?

Many regions and jurisdictions have specific tax and fee requirements that vary depending on the type of accommodation. This enhancement directly addresses these complex scenarios, ensuring accurate billing and compliance. Here are a few examples of real-world use cases this new functionality supports:

  • French Tourist Tax: In France, tourist taxes can be levied per person, per night, and often vary based on the classification or type of accommodation. Our new feature allows you to configure this with ease.
  • Spain Ecotasa (Balearic Islands): Properties in popular destinations like Majorca, Ibiza, Menorca, and Formentera are subject to the Ecotasa tourist tax. This tax often has seasonal variations (e.g., higher rates during peak season from May to October) and, critically, different values depending on the property size or accommodation type. 
  • Milan, Italy: In Milan, tourist taxes can be a percentage of the total amount, further complicated by variations based on both the accommodation type and even the guest's age. This update helps you manage such intricate calculations.

You can also configure tazes and fees by date range, learn more here:
Set up taxes and fees by date range

How to configure?

  1. Account Account menu icon.png-> Settings Settings icon.png
     
  2. Finance Payments icon.png-> Taxes and fees
     
  3. Select the Apply to Selected Accommodations Dropdown. It is available on all applicable tax and fee types all existing tax and fee configurations (excluding payment fees).
  4. By default, it is configured as All Accommodation Types. This means that if you do not make any changes, your existing taxes and fees will continue to apply to all accommodation types as they currently do.
  5. You can select which specific accommodation types you wish for a particular tax or fee to apply to. This allows you to create highly targeted tax and fee rules.

How It Works

When a reservation is made, our system will now meticulously check the accommodation type (room type) associated with that reservation. The configured tax or fee will only be applied if the accommodation type on the reservation matches one of the selected accommodation types in the tax/fee configuration.

Important Note for Properties with Varied Offerings

For properties that utilize different taxes or fees for various accommodation types, we recommend the following approach:

  1. Create Separate Taxes/Fees: create several distinct tax/fee entries, each specifically configured for a particular accommodation type or a set of accommodation types.
  2. Apply to Relevant Sources: Then, apply all of these newly configured, accommodation-type-specific taxes/fees to the sources that will utilize them (e.g., your booking channels, direct bookings, etc.).
  3. System Automation: Our system will then intelligently utilize the appropriate tax or fee based on the accommodation type associated with each reservation.

This enhancement is a testament to our commitment to providing you with the most robust and flexible tools for managing your property's financial operations. We are confident that this new functionality will significantly improve your ability to comply with diverse local tax regulations and optimize your revenue management strategies.

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2 comments
  • What is the difference between payment fee and fee selection?

    -1
  • Hello, Melissa Owens, 

    Our dedicated Support Team will contact you with more information about this request.

    Best regards!

    0

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