Understanding fee markup

Marking up fees is an additional feature that enables property managers to adjust the final fee amount before the properties get listed on sales channels.

It gives you flexibility and control over your pricing, especially if used together with the price markup feature. It allows you to adjust your pricing strategy against the changing market needs and trends.

Offset channel commissions by marking up fees and reduce operational costs
Gain more control over your pricing strategy and adapt quickly to the market changes

The feature works by adjusting non-percentage fees with the specified markup value before the pricing is sent to a sales channel. The fee markup does not work with taxes.

Overview

Mark up your fees already when connecting to a new channel. You should get familiar with the channel's commission policy and set up your markup strategy accordingly.

Remember that guests often compare different offers side by side. Overpricing may lead to a decreased number of bookings, while underpricing may leave you with a small profit margin. Remember to carefully prepare your pricing strategy. If you need help setting up a strategy or you are already connected to a sales channel/PMS, feel free to contact your Account Manager or the Support Team.

Fee markup settings

The table below summarizes where you can set up the fee markup for different channels and purposes. You can read more about each setting in the next sections of this article.

Markup setting	Allowed channels	Use case
When connecting to the new sales channel	All sales channels	Set up the default fee markup for every new property added to this channel.
Channel Settings	All sales channels	Set up the default fee markup for every new property added to this channel.
Creating new listing	All sales channels	Set up a custom fee markup for an individual property.
Bulk actions	All sales channels	Update the fee markup for all properties connected to a given channel.
Partial content update	Channels with the content update feature, see here	Change your fee markup for each hotel or room type separately, without updating any other details.
Full content update	Channels with the content update feature, see here	Update the fee markup for a given hotel or a room type, along with other changes.
Manage	All PULL channels, see here	Change the fee markup for an individual property.

Note:

Fee markup setting is not available for room types without the main property selected. Set the main hotel and room type property first - see here.

Default fee markup for a channel

Default fee markup works as default price markup. You can define the default fee markup on the channel level.

These default markup will be only a suggested value for you when you create a new listing in the channel. Changing the default fee markup doesn't update the fee markup in any listings.

Custom fee markup settings for a channel

Apart from the default settings, you can adjust the fee markup in the following ways.

Creating a new listing in the channel - When you create a new listing in the channel (PUSH and PULL), you will see the default fee markup settings. This allows you to define your markup for each newly added listing separately.

Note:

Marking up fees is not possible during mapping. During the mapping, no static data (fees) is shared with the channel, therefore, the fee amounts cannot be adjusted with markup.
Bulk actions - Use bulk actions when you update the fee markup for all properties connected to a given channel. This option is available for all channels (PUSH and PULL).
Partial content update - Use partial content update when you update only the fee markup for a given hotel or a room type. This allows you to change your fee markup for each hotel or room type separately, without updating any other details. This option is possible only for a few sales channels.
Full content update - Use full content update when you update the fee markup for a given hotel or a room type, along with other changes. This option is possible only for a few sales channels.
Manage - Use the "Manage" option to update the fee markup for a given property. This option is possible only for PULL sales channels.

Note:

When you decide to change your main property for a hotel or room type, then the newly assigned main property will keep the same markup value as the original main property.

Fee markup in use

You are connected to a channel with 20% commission on the fees amount. The channel charges the commission from the booking amount (does not add it on top). You would like to cover for this commission on fees.

Your current set-up:

Cleaning fee: 50 EUR per stay
Environment fee: 1% of the rent value (2 EUR)

Fee mark-up can apply only to non-percentage fees. In this case, it will apply only to the cleaning fee.

Actual fee cost to be commissioned: 50 EUR + 2 EUR = 52 EUR

Total fee value received after commission is charged: 52 EUR - 20% = 41.60 EUR

Commission amount: 41.60 EUR - 52 EUR = 10.40 EUR

Difference: - 10.40 EUR

To cover for the commission, your fee mark-up value must be slightly higher than the commission, e.g. 28%.

Actual fee cost to be commissioned: (50 EUR + 28%) + 2 EUR = 64 EUR + 2 EUR = 66 EUR

Total fee value received after commission is charged: 66 EUR - 20% = 52.80 EUR

Commission amount: 52.80 EUR - 52 EUR = 0.80 EUR

Difference: + 0.80 EUR