Commtrak's 20+ year history in the hotel recovery business has taught us that there is no common formula that accurately calculates commission recovery potential for every agency. If you currently do not post, reconcile, and invoice hotel commission items...your recovery yield potential can be significant. If you utilize an agency resolution and billing program or even another third party reconciliation firm, there is still important revenue to be pursued.
Estimating your potential hotel commission recovery can be a complex task. There are numerous variables that can dramatically increase or diminish each agency's yield. Some common factors include:
- The typical size of your agency's commercial accounts. Larger agencies tend to have larger corporate accounts with more non-commissionable hotel rate programs. (The largest agency firms often book over 50% of all rooms at net, non-commissionable rates)
- The percentage of international versus domestic hotel bookings. Some international properties expect booked records to be invoiced for commission payment.
- The percentage of bookings with major hotel chains versus independent hotel groups.
- The percentage of your bookings that are not recorded (invoiced) in your back room accounting system.
- The accuracy of your commission posting and reconciliation process.
- Any current billing and recovery effort by your agency or contracted reconciliation firm.
Commtrak receives data files of unresolved hotel items from agencies of every size and description. These files include any booked item that did not result in a commission payment. The majority turn out to be legitimately non-revenue items...customer cancellations, no-shows, net rates, and paid but not recorded by agency. However, a significant number of records will always yield additional commission income.