Great question! Let's backtrack a little and provide some definitions first...
What is Commission in Zaui?
Commission is a relationship where the full payment for an activity/product is taken by the agent (ie - a hotel concierge) at the time of booking, on behalf of the tour company, and a percentage of the total is remitted back to that agent.
Example of Commission Relationships:
- Hotel Concierge
- Travel Agent
What is Wholesale in Zaui?
Wholesale refers to ANY relationship in which a third-party or reseller takes payment on behalf of the supplier, pays the supplier via a voucher for that booking, and is invoiced at a later date.
Example of Wholesale Relationships:
- Online Travel Agencies (Viator, Expedia, GetYourGuide, Zaui Connect or Blue Sky Booking)
Main Difference between Commission and Wholesale
The main difference between Commission and Wholesale is related to how payment is taken.
Depending on policies set in place by the activity provider, Company A, an agent can confirm a booking with or without collecting payment first. Payment is then collected between the time of booking and the date of the activity. Once payment is collected, Company A is responsible to pay out a commission to the agent. The commission is a certain percentage of the net cost of the activity or product.
A Wholesale Company or OTA can confirm a booking without a payment and will issue a voucher for the customer to redeem. Company A will then use that voucher to invoice the Wholesaler/OTA for the booking.