Rentals Pricing Policy

Posted by admin in Policy | December 29th 2008

Many people ask how exactly the pricing works vis a vis markups/ formulas/ taxes and how it relates to the prices that a Property Owner sets.

The explanation below is as detailed and full as possible, and describes in as much detail as we are able to make public exactly how the pricing works, both in terms of the Renting Customer and the Property Owner.

What follows is disclosed in the interest of transparency and is subject to change without notice. Specifics, exceptions and special negotiations are taken care of contractually on a case by case basis, and specific contracts may vary.

NET PROPRIETEUR Pricing:

The amount that an owner wishes to achieve for any particular time period forms the basis of all pricing. The final ‘Selling Price’ is worked out as a function of the Owners price, in addition to which the following variables are factored in

Commission:

Currently the commission charged by AOL (www.azur-online.com) and EC (www.everythingcannes.com) is 15%. This represents a base level and is subject to change and is also dependant on Contract.

What is included in this price, and what is it for? – This  is to the account of the owner for  administration and procedures which pertain to the OWNERS ACCOUNT, including bonding and legal factors. In detail, it includes marketing the property, performing due dilligence on the renting customer, invoicing &  contracting the customer and  administering said documentation, recieving monies into our Bonded Account (for the protection of all parties), managing any Security Deposits held and finally distributing and dispersing all monies related to the rental to the correct destination on completion.

Service Level:

Bronze Level Service: We always add on at least a basic level of service to each reservation. This basic level of servicing (Bronze Level) is to the account of the renting customer and includes: Preparation and pre-arrival verification and testing of the apartment (water/ heating/ electricity/ Internet connection/ functioning amenities) and setup of the apartment with Linens/ towels and basic consumables. It also includes final exit cleaning on Departure and laundering of all linens and towels.

Silver, Gold and Custom Service Levels: On top of the above basic service package which is always included in the price, the customers are able to upgrade to a higher service level which includes extra mid-stay cleanings, changes of linens, provisioning of the apartment and custom requests that may be made.

NOTE: Due to our knowledge of our own Customer and Market Metrics, different default service levels may be included at different times of the year.  Certain categories of customers have different ‘Default’ paradigms and expectations, and we cater to that using our experience of the market, and by aggregating sections of our customer base.

Concierge Support:

Again, as per the Servicing Level, we always include the basic level of Guest Support into the price which is paid. This support covers professional support & Concierge Services for of all our guests in situ in apartments during normal office hours. It also includes personalised welcome and checkin and acclimatisation in the apartment.

This level of support can likewise be upgraded to a higher level of support up to full 24/7 personalised support and concierge service on request of the guest should they have special needs or should they wish to engage in the fuller peace of mind and support that this service offers.

Taxes:

There are 2 forms of taxation that we are required to collect.

Tax de Sejour: This is a ‘Hotel Tax’ payable to the local City authority. It is worked out as a function of the Type of Property x No of People (PAX) x No of Nights

Tax de Sejour = Property Type Rate x PAX x Nights

As such, it is hugely variable.

TVA (VAT): TVA in France is 19,6%. This is chargeable on top of any full and final figure. Depending on circumstance and the administrative set up of the end customer, this TVA may or may not be reclaimable in their Tax Juristiction, which is outside of the control of the billing company.

Therefore, the final price can be illustrated by the following formula:

Selling Price = (NET PROP / 0.85) + Bronze Service + Concierge Support Service + Taxes+ Upgrades

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