%20--%3e%3cg%3e%3cg%20id='Logotype'%3e%3cg%3e%3cpath%20fill='%23141313'%20d='M46.37,250.9L136.63,28.98H0v237.25C0,296.87,21.93,318.83,52.56,318.83v-.03h160.64v-154.45l-156.9,95.23c-5.8,3.71-12.82-2.05-9.94-8.68Z'/%3e%3cpath%20fill='%23141313'%20d='M347.35,104.3c-68.33,0-115.93,44.71-115.93,108.91s47.6,108.9,115.93,108.9,115.93-44.72,115.93-108.9-47.6-108.91-115.93-108.91ZM347.35,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M633.86,118.01c0,3.31-3.71,3.31-7.02,1.66-18.22-9.54-32.29-15.3-53-15.3-56.71,0-95.62,42.66-95.62,108.08s39.32,109.7,93.14,109.7v-.03c21.93,0,35.61-7.02,56.31-19.87,3.71-2.48,8.28-1.66,6.19,3.71l-5.36,12.85h86.51V28.98h-81.15v89.03ZM594.11,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1406.03,107.65l-23.58,112.61c-1.66,8.68-11.59,9.11-13.65-.4l-24.84-112.22h-94.79c-39.32,0-51.74-11.99-51.74-29.81s10.33-28.15,27.72-28.15c20.27,0,30.64,16.16,32.69,32.29h79.5C1325.35,29.38,1286.43,0,1230.52,0,1168.85,0,1130.32,36.04,1130.32,91.09v16.56h-44.71v67.07h44.71v144.08h81.15v-143.68h70.23l46.53,124.21c3.31,8.28,2.88,17.39-.4,26.1l-28.55,68.73h80.25l120.47-286.51h-93.97Z'/%3e%3cpath%20fill='%23141313'%20d='M886.41,117.98c0,3.31-3.71,3.31-7.02,1.66-19.87-9.94-34.35-15.3-54.65-15.3-60.45,0-93.97,49.29-93.97,107.65,0,64.59,37.26,98.54,87.77,98.54,23.19,0,40.57-7.02,62.1-19.47,5.37-3.31,9.51-.4,7.45,4.57-9.11,20.7-28.55,31.47-59.62,31.47h-83.2v67.07h98.5c72.04,0,123.78-47.63,123.78-114.67V107.65h-81.15v10.33ZM846.67,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1026.35,18.18c-26.1,0-44.71,16.16-44.71,39.35s18.61,39.35,44.71,39.35,44.72-16.16,44.72-39.35-18.62-39.35-44.72-39.35Z'/%3e%3crect%20fill='%23141313'%20x='985.78'%20y='107.65'%20width='81.15'%20height='211.15'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
Finance
Pricing strategies, fees, taxes, payouts, and the economic levers that drive vacation rental profitability.
Advance Payment
An advance payment is a sum of money paid by a guest before the check-in date to secure their booking, often representing a portion of the total reservation…
Amenity Fee
An amenity fee is a mandatory charge for guests, separate from the nightly rate, to cover the cost and maintenance of specific property amenities like pools…
Bank Transfer
A bank transfer is a method of electronically moving funds from one bank account to another, commonly used for paying for vacation rental bookings or for…
Base Rate
The base rate is the standard, default price for a vacation rental property per night before any dynamic adjustments, seasonal rules, discounts, or additional…
Booking Fee
A booking fee is an administrative charge added to a reservation's total cost. Typically levied by Online Travel Agencies (OTAs) or property managers, it…
Cancellation Fee
A cancellation fee is a charge levied against a guest who cancels their reservation within a specified timeframe, as outlined in the property's cancellation…
Capital Expenditure (CapEx)
Capital Expenditure (CapEx) refers to significant funds used to acquire, upgrade, or maintain long-term physical assets for a vacation rental property, such as…
Channel Commission
Channel commission is the fee a vacation rental host pays to an Online Travel Agency (OTA) or distribution channel for each booking generated through its…
Chargeback
A chargeback is a forced transaction reversal initiated by a cardholder's bank to dispute a payment. Unlike a refund, it is not a mutual agreement between a…
City Tax
City tax is a locally imposed tax levied on guests staying in short-term accommodations, including vacation rentals, with the revenue typically used to fund…
Cleaning Fee
A one-time charge added to a guest's reservation total to cover the cost of cleaning the property after their stay.
Damage Waiver Fee
A damage waiver fee is a non-refundable, one-time charge paid by a guest to cover accidental damages up to a predetermined limit, serving as an alternative to…
Demand-Based Pricing
Demand-based pricing is a strategy where vacation rental rates are adjusted according to real-time market demand, including factors like seasonality, local…
Depreciation
Depreciation is an accounting method used to allocate the cost of a tangible asset, such as a property or its furnishings, over its estimated useful life for…
Down Payment
A down payment is the initial portion of the total booking cost that a guest pays upfront to secure a vacation rental reservation. It confirms the booking and…
Dynamic Pricing
Dynamic pricing is a strategy that adjusts rental rates in real time based on supply, demand, seasonality, and other market factors.
Extra Guest Fee
An extra guest fee is a specific charge applied for each guest who stays at a property beyond the standard number of occupants included in the base nightly…
Foreign Exchange Fee
A foreign exchange fee is a charge levied by a financial institution or payment processor for converting one currency into another during a transaction.
Gross Revenue
Gross revenue is the total income a vacation rental generates from all guest bookings before any expenses, commissions, taxes, or other deductions are…
Host Service Fee
A host service fee is a charge levied by an online travel agency (OTA) or booking platform on a property owner or host. This fee covers the platform's…
Installments
Installments are a payment arrangement where the total cost of a vacation rental booking is divided into multiple, smaller payments collected over a scheduled…
Last-Minute Pricing
Last-minute pricing is a dynamic pricing strategy where hosts reduce the rates for their rental properties for dates in the immediate future. The primary goal…
Late Check-out Fee
A late check-out fee is a specific charge applied to guests who do not vacate a vacation rental property by the agreed-upon check-out time. This fee serves as…
Length-of-Stay Pricing
Length-of-stay (LOS) pricing is a strategy where the nightly rate for a vacation rental is adjusted based on the total duration of a guest's booking.
Linen Fee
A linen fee is a specific charge levied on vacation rental guests to cover the cost of providing, laundering, and replacing linens such as bed sheets, duvet…
Management Fee
A fee paid by a property owner to a vacation rental management company for the services involved in overseeing the property, guests, and bookings.
Multi-Currency Pricing
Multi-currency pricing is the practice of displaying property rates and accepting payments in the local currency of the guest, rather than the host's home…
Net Income
Net income is the profit remaining after all expenses, including operating costs, interest, and taxes, have been deducted from total revenue. Often called the…
Net Revenue
Net revenue is the total income a vacation rental generates from bookings after subtracting direct, variable costs associated with securing that revenue, such…
Nightly Rate
The nightly rate is the base price a vacation rental property charges for a single night's stay. This rate excludes additional costs like cleaning fees…
Occupancy Tax
Occupancy tax is a tax levied on the rental of short-term accommodations, which hosts are legally required to collect from guests and remit to local or state…
Off-Season Pricing
Off-season pricing is a strategy of reducing nightly rates for a vacation rental during periods of low tourist demand. This tactic aims to attract…
Operating Expense (OpEx)
Operating Expenses (OpEx) are the ongoing, day-to-day costs incurred to keep a vacation rental business running, distinct from long-term investments in the…
OTA Commission
An OTA commission is the fee a property owner or manager pays to an Online Travel Agency (OTA) for each booking generated through the platform.
Owner Payout
An owner payout is the net amount of rental income a property manager transfers to a property owner after deducting management fees, operational expenses, and…
Payment Gateway Fee
A payment gateway fee is a charge levied by a payment gateway provider for processing credit card or other electronic payments. In the vacation rental…
Payment Method
A payment method is the specific means by which a guest pays for their vacation rental booking, such as a credit card, bank transfer, or digital wallet.
Payment Scheduling
Payment scheduling is the process of collecting guest payments in two or more installments at predefined times between the booking confirmation and the…
Peak Season Pricing
Peak season pricing is a strategy where vacation rental hosts and property managers increase their nightly rates during periods of highest demand, such as…
Pet Fee
A pet fee is a one-time, non-refundable charge that hosts add to a booking to cover the additional cleaning and wear and tear associated with accommodating a…
Pricing Strategy
A pricing strategy for a vacation rental is the comprehensive plan and methodology a host or property manager uses to set rates for their property. This…
Property Management Cost
Property management cost refers to the fees an owner pays to a professional manager or company for overseeing the operations of their vacation rental.
Refund Processing
Refund processing is the operational and financial procedure of returning funds to a guest, typically following a booking cancellation, service issue, or…
Resort Fee
A resort fee is a mandatory daily charge levied by hotels, resorts, and some vacation rental complexes to cover a bundle of on-site amenities and services…
Return on Revenue (ROR)
Return on Revenue (ROR) is a profitability ratio that measures the percentage of total revenue that constitutes net income, indicating how efficiently a…
Revenue Management
Revenue management is the strategic process of using data analytics to predict consumer behavior and optimize pricing and inventory availability to maximize…
Sales Tax
Sales tax is a consumption tax charged on the sale of goods and services, which vacation rental operators are often required to collect from guests and remit…
Seasonal Pricing
Seasonal pricing is a revenue management strategy where vacation rental rates are adjusted based on demand fluctuations throughout the year, such as high…
Service Fee in the Vacation Rental Industry
A service fee is a charge levied by an online travel agency (OTA) or booking platform for the use of its services. These fees can be charged to the guest, the…
Shoulder Season
Shoulder season is the travel period between the high (peak) and low (off) seasons, often characterized by a favorable balance of good weather, fewer crowds…
Tax Collection
Tax collection is the process by which vacation rental hosts and managers charge, collect, and prepare to remit applicable taxes from guests to the appropriate…
Tax Remittance
Tax remittance is the process of forwarding taxes collected from guests, such as occupancy or sales tax, to the appropriate government authorities.
Tax-Deductible Expense
A tax-deductible expense is a cost incurred while operating a business, such as a vacation rental, that can be subtracted from gross income to reduce the…
Tourist Tax
A tourist tax is a levy imposed by local or regional governments on visitors staying in short-term accommodations. The revenue is typically used to fund…
Transaction Fee
A transaction fee is a charge collected by a payment processor or gateway for facilitating an electronic payment, typically for a credit or debit card…
Trust Account
A trust account is a special, legally designated bank account where a property manager holds funds on behalf of others, such as guests and property owners. It…
Value-Added Tax (VAT)
Value-Added Tax (VAT) is a consumption tax levied on goods and services, including vacation rental stays, in many countries worldwide, particularly in the…
VRM Commission
VRM commission is the fee a property owner pays to a vacation rental management (VRM) company in exchange for managing their rental property. It is typically…
Wire Transfer
A wire transfer is an electronic method of transferring funds from one person or entity to another through a network of banks or transfer agencies, known for…
Yield Management
Yield management is a variable pricing strategy that aims to maximize revenue from a fixed, perishable inventory, such as vacation rental nights. It involves…
Join the Lodgify newsletter.
Once a month, get free templates, expert tips for hosts, industry news, webinar invitations, and more — straight to your inbox.
One email a month. Unsubscribe anytime.