Introduction
Learn how to create fees for mileage and generator usage (and understanding the difference between tiered & matching tier pricing).
To begin setting up Mileage & Generator fees, visit Add-ons and navigate to the Miles & Generator tab, then click +New Fee
- select type (mileage/generator)
- for mileage, select unit (miles/kilometers)
- name the fee (example, Mileage35)
- select 'How do you charge?' (unlimited vs. based on usage)
- if 'based on usage'
- select tax rate applicability from drop down menu of existing tax rates you have set up
- select how you would like to charge (tiered/matching)
- enter applicable figure for how many miles/km's per calendar day of trip are free
- complete 'pricing levels' section
- ensure that a nominal high figure (eg, 9999) is entered in 'to' under the last 'pricing level' to ensure you are not introducing system confusion
Tiered Pricing Example
- 100 miles included per day
- 101 mi. to 150 mi. $0.35/mi.
- 151 mi. to 200 mi. $0.45/mi.
- 201 mi. to 1000000 mi. $0.55/mi.
If we are to apply above structure to 6 night/ 7 day rental, where the guest drove a total of 1500 miles, we would be calculating as follows:
-
700 miles free of charge (as per miles included per day)
-
350 miles associate with first tier of pricing above (max of 150 miles per day x 7 days = 1050). Calculates as 350 x 0.35 = $122.50
-
350 miles associate with second tier of pricing above (max of 200 miles per day x 7 days = 1400). Calculates as 350 x 0.45 = $157.50
-
100 miles associate with third tier of pricing above (as anything over 200 miles per night falls into the final tier). Calculates as 100 x 0.55 = $55.00
Total charge to guest based on above; $122.50 + $157.50 + $55.00 = $335.00
Matching Tier Pricing Example
- 100 miles included per day
- 101 mi. to 150 mi. $0.35/mi.
- 151 mi. to 200 mi. $0.45/mi.
- 201 mi. to 1000000 mi. $0.55/mi.
If we are to apply above structure to 6 night/ 7 days rental where renter drove a total of 1500 miles would be calculated as follows
-
700 miles free of charge (as per miles included per day)
-
All remaining miles associate with matching tier of pricing, in this case 800 (miles driven)/7(total days) = 114.29 miles/day therefore falling into the first tier of pricing above (101-150 miles per day)
Total charge to guest based on above; 800 x 0.35 = $280
Important Notes
- Above examples/calculations are determined based on miles included per day (as this is the option chosen by majority of users).
- there is also the option to charge per reservation (in which case same logic as illustrated above applies, but based on total usage over course of reservation vs miles driven per day)
- Mileage and Generator fees will charge per day regardless if you charge per night or day for your rental amount.
- In a tiered format 'price' charged must increase with each level/tier (otherwise the system will not calculate successfully)
- We recommend using as few tiers as possible (one or two is ideal)
- Do not withhold mileage fees from the Security Deposit, as claiming the Security Deposit does not add balance paid to the reservation.