Advice on where to code both Travel Agent Commissions and OTA costs that are found on the Choice Franchise invoice.
Some owners and managers have asked about Commissions, both Travel Agent and OTA costs, as they are also included on the Choice Fee invoice. Those fees should be recorded in the Rooms Department in a specific account labeled “Commissions”. Tracking them is this fashion can help you to see how your contribution of revenue from commission-able sources compares to other operators, and can lead you to valuable conversations with your Franchise Representative about the situation. If you have any other questions, or know of an expense on the Choice Fee invoice we have not defined, please let us know.
How you track Choice Fees is one key to comparing how your hotel’s profit measures up
Redoing your accounting can be an overwhelming task, but standardizing to the 11th Edition of the USALI will make your GROW Profitability Analysis even more meaningful. Each month we want to provide you one small step you can take towards this goal.
Our topic of the month is “Franchise Fees”. Did you know that the 11 th edition expects the entirety of these fees to be broken down in various departments? If you’re currently grouping them together in one line, we recommend creating the accounts highlighted below. We’ve also included the Departments .
Whether you want to compare your expenses to other operators, to improve your income, OR have a meaningful conversation about your Fees; detailed accounting will help you greatly.