Finances are handled differently on certain channels and by different property managers.
For that reason, there are multiple fields that define financial values. In this article, we'll give an overview of all these fields as they are used on the Guesty Dashboard.
Financial data types
The fee that the guest pays for the accommodation only, excluding additional fees (e.g., Cleaning Fare).
On most channels, it's common to charge extra for cleaning. This appears separately from the Accommodation Fare.
= Accommodation Fare + Cleaning Fare.
Guest's Channel Fee (Airbnb only):
Airbnb charges a service fee from both the guests and the hosts. This is taken as a percentage of the reservation Subtotal Price. Guests see the Guest's Channel Fee as part of the price they pay at check out, before booking.
Guest's Taxes (Airbnb and manual reservations):
Some hosts are required by local laws to charge a tax. It's common practice on Airbnb to add the tax as part of the reservation price. You can also add this for manual reservations.
Guest's Total Price:
= Subtotal Price + Guest's Channel Fee + Guest's Taxes
Host's Channel Fee:
As mentioned, Airbnb charges a service fee from both the guests and the hosts. The Host's Channel Fee is taken as a percentage of the reservation Subtotal Price. Guests do not see this fee.
Host's Taxes (manual reservations only):
In manual reservations, you can add a Host's Tax, to be excluded from the Payout.
= Subtotal Price - Host's Channel Fee - Host's Taxes.
Formulas are used within the Guesty dashboard to determine revenue share between property managers and owners. You can read more here.
Account level formulas can be filled within Account > System Settings > Commission Calculation.
You can override the account level settings for a specific listing via Listings > Settings.
Net Income (input formula):
Use the data types above, plus dynamic variables, to determine the Amount from which the revenue sharing should be calculated. By default, this should be the Host Payout.
Commission (input percentage):
This is the percentage of the Net Revenue that should go to the property manager.
Commission Tax (input percentage):
Tax on the Commission. The commission does not include tax
For example, if the Net Revenue is $100, the Commission is 20%, and the Tax is 10%, then the Tax will be 10% of 20% of $100 = $2.
Commission Inc. Tax:
= Commission + Commission Tax.
Owner's Revenue (calculated field):
The Owner's Revenue is automatically calculated as:
Owner's Revenue = Net Income - Commission - Commission Tax
For example, if the Net Revenue is $100, the Commission is 20%, and the Tax is 10%, then the Owners Revenue will be 100 - 20 - 2 = $78.