Guide - Payment Methods & Supplier Types
Rates play a critical role in determining your profit margins. Regardless of your role in the travel industry, the rate types you work with matter a great deal. Unfortunately, there’s a lot of them and that can make it hard to remember the difference between each type. Fortunately, you’ve got this cheatsheet to reference any time you need to decide on what works best for your business model.
Your success can very well depend on which rates you use, how you combine them and how they’re delivered.
HSP supports various Payment Types :
Cash [0]
The payment type "Cash" is applicable to Net suppliers.
When selecting the "Cash" payment method, there is no need to provide credit card details or any other payment method. The booking request will secure a rate with the supplier, and payment collection for the booking will occur outside the Gimmonix system. Payments are collected by the supplier directly from the partner.
Credit Card Internal [1]
The payment type "Credit Card Internal" applies to Net suppliers and is available only when the Partner is integrated with a Payment Gateway within the Gimmonix system.
This method operates similarly to "Cash", except that the Partner collects payment from the end user at the time of booking.
HSP Integrated Payment Gateways - Click here.
Credit Card External [2]
The payment type "Credit Card External" is applicable to Gross suppliers.
When working with a Gross supplier, a credit card is required at the time of booking. Partners have two options for using this payment method:
- Book by Credit Card Method: Provide a credit card for each booking individually.
- Corporate Card Setup: Define a corporate credit card at the account level. In this case, no credit card is required for individual bookings, as the corporate card will automatically be used for the supplier.
VCC Support -
When working with a Gross suppliers, clients have the option to integrate a Virtual Credit Card (VCC) within the Gimmonix system. The VCC will be automatically generated and transmitted to the supplier with each booking attempt.
For VCC Integrated Supplier - Click here.
Pay Upon Arrival [3]
The payment type "Pay Upon Arrival" is applicable to Gross suppliers.
When booking a "Pay Upon Arrival" or "Pay at Property" rate, suppliers may have different requirements, some may request a credit card, while others may not.
With this method, the corporate card or the end user’s card is charged only when the end user arrives at the hotel.
Payment - Comparison Matrix
| Payment Type | Supplier Type Support | Credit Card Required | Payment Collector |
|---|---|---|---|
| Cash [0] | Net. | No. | Supplier collects directly from Partner. |
| Credit Card Internal [1] | Net. | Yes. | Partner collects from End-User. |
| Credit Card External [2] | Gross. | Yes. | Supplier collects from Partner. |
| Pay Upon Arrival [3] | Gross. | ? | Hotel collects from Partner / End-User. |
Credit Card field values
Immediate Payment
(Default value) In this case, the payment method in the booking request will be ‘CreditCardExternal.’
Not Required
Payment is to be made upon arrival at the hotel. Payment method sent in the booking request will be ‘Pay Upon Arrival'.
Guarantee
Credit card details will be required, but no charges made. Payment will be made directly to the hotel upon arrival. In the case of a cancellation, payment will be made after cancellation policy's expiry. Payment method sent in the booking request will be ‘Credit Card External.’
Deposit
Credit card details will be required, and the card will be charged for the value of [sum= FinalPrice - PayOnArrivalFinal]. Upon arrival at the hotel, ‘PayOnArrivalFinal’ amount is to be paid. Payment method sent in the booking request will be ‘CreditCardExternal,’ and in package details price section ‘PayOnArrivalFinal’ will be returned.
Pre-Paid, Post-Paid & Commissionable Rates
Pre-Paid
Pre-paid bookings involve paying for your room at the time of booking, often via an online platform or travel agency.
Post-paid
Post-paid hotel bookings allow you to reserve a room without immediate payment, with the payment being settled upon arrival or departure from the hotel.
Commissionable
A "commissionable rate" is when a customer books a hotel room at a commissionable rate through a third party, a percentage of the rate is paid as a commission to that intermediary. This arrangement is common in the travel industry, where travel agents and online booking platforms often rely on such commissions as part of their revenue model.
| Glossary | Meaning |
|---|---|
| Net Rates | Net Rate is the most common rate type in the industry. It is sold by a company, after their own mark-up is added on top of the Net rate. In this rate type, the OTA charges the customer for the full amount, which makes him the MOR (Merchant of Record). The OTA would then pay the supplier for the Net amount. |
| Gross Rates | Gross Rate is a rate that includes a payable commission amount for the OTA. It is sold by the OTA at the full price, which means that the OTA cannot add any mark-up on top of the Gross rate. In this rate type, the supplier charges the customer’s credit card for the full amount, which makes him the MOR (Merchant of Record) |
| Direct/Negotiated Rates | OTA signs an agreement with the hotelier, getting ‘exclusive’ rates, which can be consumed through the GDS/Channel Managers. |
| CUG Rates | Closed User Group These are discounted rates which are sold to ‘members-only’ groups. Mainly promoted in OTAs’ websites as: ‘Hidden rate, click here to register and view’. |
| Mobile Rates | Rates that are available to be sold through mobile apps/websites. |
| B2B Rates | Rates which are intended to be sold by travel agents, operating under a B2B booking engine. Suppliers forbid selling B2B rates in B2C channels. |
| Package Rates | Discounted rates, intended to be sold as part of a package. E.G Hotel + Flight package. |
| Opaque Rates | Discounted rates are sold without a ‘supplier’ behind them. Wholesalers usually buy these rates from other suppliers and sell them at a cheaper rate, without disclosing the source of the rate. |
| GDS | Global Distribution System |
Partner who implementing the Payment gateway on their side - outside of Gimmonix system :
Updated about 2 months ago