Traditionally, housing companies have relied on post-event commissions and rebates as their main source of revenue. While this method has been effective, it involves steps like verifying actualized rooming lists, generating invoices, and waiting for payments. That's where our new approach with Upfront Markup comes in, transforming this process into something more efficient and straightforward.
As we look towards the future, we anticipate significant industry benefits if the funds typically allocated for rebates and commissions to housing companies were instead collected directly from guests at the time of booking. This would eliminate the need for reconciliation and invoicing, reducing operational burdens for both hotels and housing companies, while maintaining revenue streams. That’s exactly what we’re accomplishing with Upfront Markup. Let’s dive into the benefits of this new compensation model.
One of the key aspects to consider with an upfront fee is the ability to maintain competitive rates. It is crucial to ensure that housing companies can still negotiate competitive rates that are comparable to those available to the public, even with the upfront fee included.
We guide the salesperson to quote the lowest possible rate, taking your markup and their best available rate into account. The result? A sell rate you can have confidence in.
Upfront markup works with both net and commissionable rates.
Our customizable tech lets you choose whether the upfront markup is refundable. If yes and a guest reduces a night, the system will automatically take care of the refund. When a night is added, the guest is automatically charged.
From a cash flow perspective, collecting the revenue upfront is a significant advantage for housing companies. Traditionally, it could take months to receive rebates and commissions, which can impact financial planning and operations. By eliminating the cumbersome reconciliation workflow, we can provide immediate financial benefits and operational efficiency to both housing companies and hotels.
The reconciliation process has traditionally been a burdensome workflow where housing companies and hotels sort out how much is owed. Upfront Markup removes this headache and almost eliminates the reconciliation workflow, benefiting both parties at the end of the day.
The flexibility to adjust rates offers housing companies the ability to be more competitive. They can choose to lower the markup to attract more bookings or increase it to boost profits.
"Upfront Markup represents a significant shift in how housing companies can manage their revenue. By collecting fees at the time of booking, we simplify the entire financial process, allowing companies to focus more on delivering exceptional experiences to their guests."
"Upfront Markup is a testament to EventPipe’s commitment to innovation and customer-centric solutions. This product empowers housing companies with greater financial control and operational efficiency, setting a new standard in the industry."
"Our customers have long expressed the challenges of managing post-event commissions and rebates. Upfront Markup not only addresses these pain points but also offers a more predictable revenue stream, which is crucial for strategic planning."
We're excited about the potential of Upfront Markup to revolutionize revenue management for housing companies. By streamlining the reconciliation process and providing immediate financial benefits, this innovative product can significantly enhance operational efficiency. With the flexibility to adjust rates, housing companies can stay competitive and maximize profits. Upfront Markup represents a significant advancement in the industry, offering a simpler and more effective way to manage revenue.
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