Price Calculation: how it works


This is how the Automatic Price Calculation works:

1) Paying persons

First of all the system defines how many people pay.
Who pays?

  • Adults
  • Children except those with 100% discount (you, the Owner, decide this in Child Policy)

 

In our example we have two children: one is 2 years old and one is 8 years old.

Who pays? In this case the Owner defined that children up to 5 years old pay nothing (100% discount)

The child policy is defined by the Owner

so, in our example only the 8 years old is a paying person.
We have 3 paying persons:

2 adults + 1 child (8 years old) = 3 paying persons.

2) Price according to Season

Now that we know how many people pay, we see on the table the price for them.

In this example the price for 3 people in High Season is 115.24 U$ X 2 nights: 230.47 U$

Ok, easy so far.

What if the period was over more seasons? Well, we consider this of course. See this example:

the last night is on Standard Season so it’s calculated accordingly.

 

3) Child Policy

Now that we have the total price, we apply the Child discounts, if any.
In our case we have one 8 years old child who has the right to a 60% discount.
(we completely ignored the other child as he does not pay).

The total price is 230,47 / 3 paying persons =  76,82 * 60% = 46,09 U$

So the discount for this child is 46,09 U$.

4) Short stay Increase / Long Stay discount

Now we have the total price (230,47 – 46,09 =  184,38 U$ ) , including the children discount. Let’s see if there are some increase for who stays a short time or discounts for who stays a long time.

Yes, we have:

in our example, we have to increase the price by 10% because they stay only two nights.

So, 184,38 * 10% = 18,44 U$.

Total price so far: 184,38 +18,44 = 202,82 U$

 

5) Extras

Then we calculate the Extras.

each Extra is calculated in the way you defined. I won’t go into details right now.
What I suggest is that you add them, see how the system calculates them for you well and if not, change them.

6) Total Price

And the total price is 404,48 U$!

More about the Price Calculation

Currency

Customers can see the prices in many currencies, and they are updated daily by our system.
But Customers cannot pay in any currency.
They have to pay  in the currency the Owner defined. See

because the Owner has defined

of course, Owner and Customer can agree in payment in any currency or method, that’s up to you.

Certified Price Vs Approximate Price

You may not like the way the system calculates your prices. Or you may like it but it does not calculate the price as you wish.
This is possible and we know it. What’s impossible is to have a price structure and price calculation system which is OK for everybody.

There’s a real price jungle out there.

If you do nothing we will consider your prices are Approximate and tell Customers so.

If instead you checked and the prices are correct, you can go in Apartments > Apartment  > Prices

and tell us that the price is right:

so, we got you covered either way.

Of course it’s much better and you will get more customer if the price is Certified.

Please be careful: Certified Price is a serious thing, so check this only if you are really sure.

 

“I would have calculated differently”

Yes, we know.
There is not official or perfect way to calculate prices.
We chose this, we gave enough flexibility to insert Extras, discounts etc… but there is no way everybody is going to be happy.

We hope most of you can accept the way prices are calculated and we will keep improving them, so please feel free to comment or suggest new ways!

 

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