Direct bookings vs marketplace bookings

When guests book your property directly, you have complete visibility into all the details of the transaction. You know:

The amount of rent collected.
The fees are charged.
The taxes applied.

This makes it easy to determine your taxable revenue.

When guests book through a marketplace, determining taxable revenue can require more attention. Many marketplaces collect and pay some or all lodging taxes on your behalf. This usually involves:

Adding applicable lodging taxes to the guest’s bill.
Collecting the tax from the guest.
Remitting the collected tax to the appropriate tax jurisdiction.

However, not all jurisdictions follow the same rules. Sometimes:

A marketplace may not collect or pay any lodging taxes.
It may collect only certain portions of the total tax owed.

For example, your property’s jurisdictions may require a 6% state occupancy tax and an 11% city occupancy tax. If the marketplace collects and pays the state portion but not the city portion, you’re responsible for collecting and remitting the city portion yourself.

Marketplaces provide reports that show how much tax they collect from guests. Review these reports to:

Confirm the amount collected for taxes.
Identify which taxes have been paid on your behalf.
Determine what, if any, taxes you must still collect and remit.