Markups - New Calculation
Guesty currently calculates markups by ensuring the payout minus the markup value equals the nightly rate. (Example #1)
In June 2018, we will be updating the way Guesty calculates markups to align with the industry standard in which the nightly price is equal to the base price plus the extra person fees times the markup. (Example #2)
The purpose of this update is to simplify the use of Markups in Guesty and align with industry standards.
Impact - Markup Value Update
- There will be no changes to your prices in any of the booking channels.
- Guesty will update your markup value (if exists) to Booking.com direct and Booking Website in order to ensure that your prices will not change.
- For example:
If you had a 10% markup value with a base price of $100 which results in a $111.1 nightly rate. Guesty will update the markup value to 11.1% so your nightly rate will not change.
Booking Website and Manual Reservation will share a markup value under Guesty Reservations.
Markups - Account Settings
We're also adding the ability to set Markup values on the account level and using them across all listings, thus saving you the work of setting markups on each listing specifically.
Will this cause any change in my prices?
No, there will be no changes to your prices in any of the booking channels.
What will be the account settings Markup values?
We will add account level markup settings only to Booking.com (direct) and Guesty reservations (Booking Website and Manual Reservations).
The markup values will be equal to the values used most commonly in your listings.
For example: if most of your listings have a markup value for 7% on Booking.com, then this will be account settings markup value.
Will all listings use the account Markups settings?
We will only activate the "Use account settings" toggle for listings which has an identical markup setting as the one in the account settings (the most commonly used).
This logic is implemented to make sure none of your current settings are impacted by the change.
If you want to ensure to get the base price of $100, and you know the channel takes a 10% fee, you set the markup to be 10%. Guesty then calculates the price that needs to be listed so that minus this 10% you will get the desired base price of $100.
In this example, the listed price will be $111.11. Why? As when the channel gets $111.11 and takes its 10%, which is 11.11, THEN you are left with $100.
If the listing has the following settings:
- Base price: $100
- Extra person fee: $10 per guest
- Number of included guests: 2
- Channel A markup: 10%
The nightly price for channel A would be:
- 1-2 guests: $110
- 3 guests: $110 + $11 = $121
- 4 guests: $110 + $22 = $132