A. Dynamic payout means that we adjust the amount sent to channels (according to the percentage of the channel fee you have on your channel in Hosthub) so you get the same amount per night for all channels.
Dynamic rates ensure a consistent payout per booking, simplifying revenue projections and eliminating discrepancies caused by varying channel commission fees. This approach enhances transparency and allows hosts to better predict their earnings.
To calculate the price that we send to the channels we use the following formula.
Channel daily price - Channel daily price * Channel fee/100 = Hosthub daily price
Example: Let’s say that you set a price of 100$ on Hosthub, then our system calculates and adds up an extra amount according to the channel fee you have on Hosthub channels that support price-synchronization, sending that final price to them.
For Airbnb the default is 15% , for Booking.com 15% and Expedia 18%
Using the calculation formula above, that means that if you have set a price of 100$ then Hosthub will send:
Airbnb, Booking.com: 118$, because 118$ - 15 * 118$/100 = 100$,
Expedia: 122$ , because 122$ - 18 * 122$/100 = 100$,
*all amounts are rounded.
This way you can ensure that you always get a net 100$ per day regardless of the channel fees applied.
You can always adjust the channel fee according to your needs.
Additionally, consider reviewing platform-specific features, such as custom rate plans and commission structures, to effectively optimize pricing strategies. It's also beneficial to routinely audit pricing configurations to reduce errors or overlaps.
B. Rate Parity means that you want to set the price to 100$ and send it across all channels without any type of fluctuations. You have that option by simply changing the channel fee for all channels that support Price-Synchronization to 0%. However, it's important to note that while rate parity simplifies pricing, hosts must monitor platform commissions to ensure they do not erode expected revenue. This practice helps maintain transparency for potential guests and ensures financial feasibility for the host.
Factors Influencing Price Variations Across Platforms
Price variations can arise from factors like discounts or promotional stacking on platforms such as Booking.com or Airbnb. For example:
Platform Discounts: Specific promotions like Genius loyalty discounts or mobile offers may apply automatically.
Rate Plan Adjustments: Non-refundable or segmented rates can influence visibility and guest choices.
Staggering Discounts: Overlapping discounts could unintentionally reduce the final price. To maintain pricing accuracy, review and configure platform-specific settings regularly, ensuring discounts align with your revenue goals.
