Revenue Allocation - Everything you need to know

The Revenue Allocation makes the price breakdown for more accurate accounting and profit&loss analysis. It is meant to improve the calculations of the rate plans that include add-ons (packages) to have correctly distributed revenue streams for storing transactions and reporting better tax documents to the government.

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Important

  • You need to have add-ons created and added to the rate plan in order to see it's revenue breakdown

Benefits

  • Improved calculation to split revenue streams for packages or internal price breakdown. If there is a reservation that includes breakfast, this feature allows the breakfast transaction to be posted every day of the stay or for every guest. 
  • Apply the price breakdown to the reservations received from booking engine and direct reservations.
  • The new package pricing breakdown is displayed:
    • when you create a reservation;
    • when you edit reservation.
  • Print Folio the way you need it:
    • without revenue breakdown for guests;
    • with the breakdown for your internal needs.
DEMO Mountain Resort and Spa - Reservations - Google Chrome

Currently, revenue breakdown is not reflected in:

  • Reports
  • Guest-facing sections such as: invoices and reservation confirmation e-mails, as it is not relevant for guests.

How does it look?

Revenue allocation is the way to show a detailed breakdown of the rate plan with add-ons. Check the following example:

  • A reservation for the Standard room: 2 adults and 1 child included in the room rate
  • Rate plan: Walk-in, Breakfast included
  • Number of Nights: 3

On guest's folio you can see the following breakdown of charges:

  1. Room rate for the first night
  2. Tax for the first night
  3. Separate breakfast charges for 2 adults and for 1 child (discounted) for the first day
  4. Tax for each person's breakfast
  5. Room rate for the second night
  6. Tax for the second night stay
  7. Airport Transfer
  8. Tax for the transfer
  9. Separate breakfast charges for 2 adults and for 1 child (discounted) for the second day
  10. Tax for each person's breakfast
  11. Total

Invoicing

Since guests don't need all of these details on their invoices, they will see the following:

  1. Combined value of the package per day
  2. Combined value of total taxes
open_invoice - Google Chrome

How to control how add-ons values are calculated for revenue allocation

Choose how the items will be calculated for revenue allocation:

  • Adjust its price proportionally to the other package inclusions - this option includes the add-on price into the calculation and adjust its price proportionally to the other package inclusions.
  • Calculate based on the full price - this option doesn't change the add-on price and keep the full pricing. It is mostly used for the services provided by the third-parties, where you want to keep the price fixed. For example: concert tickets, airport transfers, or safari tours. These services should be marked with this option during add-on creation to keep their pricing fixed. 
DEMO Mountain Resort and Spa - Add-Ons - Google Chrome

How to configure add-ons transaction to be posted daily

If the add-ons charge type is selected as: Per Night, Per Guest Per Night or Per Room/Bed Per Night you can select for the transaction to be posted daily as shown below:

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