OTA's like Airbnb and Booking.com all charge a percentage of the booking as a commission.
HomHero gives you the option of lifting rates for each specific OTA in order to cover the commissions.
A common mistake is to just set the uplift to the OTA's commission percentage, but this will not cover the entire amount of the commission.
We'll explain why.
Say we have a booking total for a stay of $100.
Booking Total: $100
OTA will take 5.5% = $5.50
So what figure do we need so that when the OTA takes off their 5.5%, we still get our $100?
We can't just add 5.5% because this would make our booking total = 105.5 and then the OTA will take 5.5% of that figure which = $5.80
So we need to adjust the uplift to take into the account that the OTA will take their percentage of our total rate including uplift.
So if we instead use 5.82%, this makes the total booking = 105.82, then the OTA deducts their commission of 5.5% which is $5.82, which means that $100 is left over.
HomHero includes a reverse percentage uplift calculator on all Rate Lift fields, to make it easier to arrive at a percentage that will cover the inclusive percentage uplift.
If you need assistance on how to change your Rate Lift in HomHero for your OTA please see article here.