Two different commissions
There's a management company commission, and it pays for the management of the facility.
- service
- reporting
- staff
- cleaning
- repair
- tariff
- interaction with owners
- business and quality control
There's a sales channel commission, and it pays for the guest engagement.
- tour operator
- agency
- e-mail or other partner
They're different functions. They can't be mixed.
What happens if you pay the tour operator from the Commission of the criminal code
If the Criminal Code receives conditionally 8-10 percent for management, and of this money should give 15-20 percent to the tour operator channel, the model does not work.
The CC is left without resources to manage, and it's hitting service, personnel, reporting, repair, quality control and ownership.
As a result, the facility can lose quality, get bad reviews and reduce load, and trying to save on the right cost structure will lead to large losses.
The correct model of the price of the ticket
First, the internal price of the property is calculated, which includes accommodation, operation, owner income, the Criminal Code commission, taxes, repair reserve and minimum margin.
If you sell a ticket through a tour operator or an agency, you get a budget on top of it, and you pay the sales channel commission.
So the UK receives money for management, the tour operator receives money for sale, and the owner receives income from the inhabited unit.
Why the price of a ticket can be higher
A trip through a tour operator can cost more, because it should include not only a room, but also a program:
- feeding
- transfer
- excursion
- medical wellness block
- route
- escort
- bath
- family-format
Then the higher price is justified. The client does not buy a room, but a ready-made scenario for the stay.
The manager doesn't have to say, "We're just adding commissions," but you have to say, "We're selling packaged software through the tour operator."
Why a low price without commissions can sell worse
Sometimes a cheaper product sells worse because the sales channel is unmotivated.
If the agency gets a low commission, it won't actively promote the object; if the competitor gives a normal commission and a product that's understandable, the agent will rather offer it.
For downloading, not only the price for the tourist is important, but also the motivation of the seller.
How to explain this to the owner of the unit
Working wording:
"The tour operator commission is not removed from the management company commission, it is pre-counted in the price of the ticket, it is necessary that the partners are motivated to sell, and the Criminal Code retains the resource to manage the facility, and if the channel brought a guest, its commission is the cost of attracting that guest."
Direct Sales and Tour Operators: How to Explain the Difference
In direct sales, the external commission is lower, so the margins can be higher, and in tour operators, the commission is higher, but the channel gives volume.
The job of the UK is to manage the balance sheet, you can't be totally dependent on tour operators, but you can't be completely dependent on them, and direct sales, tour operators, agencies and e-commerce sites have to work together.
How to Remove the Feeling of Double Commission
The buyer can say: “So I take the commission of the Criminal Code and the commission of the tour operator?”
Strong answer:
"It's different costs. The CC manages the facility and is responsible for quality, reporting and operation. The tour operator or the agency attracts the guest; if the guest comes directly, the channel commission is lower; if the guest comes through a partner, that partner receives a payment for the sale. All deductions are reflected in the financial model and reporting in advance."
The answer to the question is: why not lower the price?
The buyer says, “Why not lower the price and remove the tour operator commission?”
Strong answer:
"Low price alone does not guarantee sales: tour operators and agencies sell products that have a clear commission and a ready program; if the commission is weak, the object will sell worse, even at a lower price; therefore, the right thing to do is not to remove the commission, but to put it in the price of the program and give partners the motivation to sell."
Practical conclusion
The commission of tour operators should be part of the ticket price, not an expense from the commission of the Criminal Code.
The manager has to explain to the buyer that the channel commission is the cost of attracting a guest. Without a motivated sales network, the unit can stand idle. With a properly calculated commission, the object has a better chance of loading.