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Updated Vrbo integration – Fees

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Updated Vrbo integration – Fees

At Kigo our goal is to help you streamline your business. One of the important aspects to consider is that you need to set up fees that can be shared across channels. The OTAs rules need to be respected in order to have a successful sync and business management.  
“Processing fees” is a type of fee that is usually set up so guests end up paying for credit card fees. However, these fees are not allowed by some channels (such as Booking.com or Airbnb) or its desired calculation mode is not supported by others, such as Vrbo.
Processing fees in Kigo correspond to fees with the “calculate on statement total” option selected. The calculation for these fees increased the price more than the “flat” percentage set, and it applied to all items (rent, fees and taxes).  So for example for a $100 rent + $10 taxes + $40 cleaning fee (total = $150): 
  • A 10% processing fee applied to rent + fee + taxes would be $15 (correct but not legal option, as taxes cannot be increased more than their value) 
  • A KVRS processing fee applied to rent + fee + taxes would be around $30 (incorrect and not legal) 
  • A 10% fee applied to rent + fees would be $14 (correct and legal) 
This calculation produced a big discrepancy between the search price and booking price at Vrbo. By solving it, you are eligible to be enabled in Price Consistency.   
As a summary:
  • “Calculate on statement total” should not be selected when configuring fees.  
  • For being enabled in Price Consistency with Vrbo, the fees set as percentage need to be calculated as “flat” percentages of rent or rent + fees. 
  • “increased” percentages are not compatible 
  • Taxes cannot be increased (it’s not legal in most countries to increase the tax more than its amount or percentage) 
Alternative: if you need a 3% processing fee, they can set up the fee with 4% or higher so it covers the card costs for rent, fees and taxes. 
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