Comparing rates from different channels, brand.com rates to Direct OTA channels or OTA/brand.com on Meta channels, requires a rate type & currency normalization to make sure the comparison will yield the correct insight.
Different channels tend to represent the rates in different ways.
We have seen the following rate types being used in different channels:
- Net rates – A rate without any additional taxes
- Total – A rate including all the applied taxes
- Sub Total – A rate including most of the taxes. In some cases, some of the local taxes will not be included in the rate.
- Different currencies for different PoS
Using the tax information & currency exchange rates, we calculate the correct rate and make sure the correct rate type in the correct currency is compared.
Here is an example of such calculation:
For a hotel, we have extracted a rate with the following criteria:
- Rate: 3132 CNY
- Rate type: “Net”
- PoS: US
- Currency exchange rate CNYàUSD: 0.1416
- Tax information: VAT 0.06% & Service 0.1%
For the OTA we have extracted a rate with the following criteria:
- Rate: 516 USD
- Rate Type: “Total”
- PoS: US
To compare the rates, we will add the taxes to the hotel Net rate and convert the rate to USD*.
* By default, rate conversion is done to the rate of the PoS from which we have acquired the data.