Fix Elements and Variable Components

An important feature within the component list is the variable component. Whilst the revenue of all other services in a package is distributed at their specified rates (= fix elements), the revenue of variable component amounts to whatever is “leftover” from the total package price.

This field is pre-set with the definition from the service master file. You may change the field, if required:

•    Select no (i.e. the rate is “not fix”) and the revenue for this service may be reduced, if the package rate is less than the charges for all services added together. SIHOT will distribute the revenue among all other services at their respective rates. Whatever revenue remains afterwards, will then be allocated to the variable component (which is usually accommodation).

•    Select yes (i.e. the rate “is a fix price”) and the service is being allocated its full share as per the service master file during the distribution of revenue. If the package rate is less than the sum of all fix services, then all fix services will be reduced in proportion.

It is also possible to define two or more variable components in the component list, each receiving a certain percentage of the variable amount. Select percentage in the column fix and enter the percentage under the column rate. This function is used e.g. in all-inclusive resorts in order split the revenue percentage-wise between Rooms and F&B, after deducting fixed costs (such as excursions, etc).

Above screenshot shows that 40% of the component list’s revenue is allocated to the revenue account LO, while 60% are allocated to the revenue account LO1.