Explanation: In the context of travel agency (TA) commissions, the commission structure is based on the difference between the booking price and the reference price (Ref Price). The TA in this scenario has selected the 'Pay to YOU' option on the portal, which means the commission is calculated based on the difference between the booking price and the Ref Price.
The TA creates a booking for 1 room night (RN) at a price of Rs. 2000. The minimum price shown to the TA was Rs. 1900, which is also the Ref Price. The commission structure for the TA includes a base commission of 10% and an up-sell commission of 90%. However, these commission percentages only apply if the booking price exceeds the Ref Price.
In this case, the booking price (Rs. 2000) is not higher than the Ref Price (Rs. 1900). Therefore, the TA does not earn any commission because the booking price does not exceed the Ref Price. The commission is only applicable if the booking price is higher than the Ref Price, which is not the case here.
To summarize, the commission is calculated as follows:
- Booking Price: Rs. 2000
- Ref Price: Rs. 1900
- Difference: Rs. 2000 - Rs. 1900 = Rs. 100 (This difference is not considered for commission as the booking price is not higher than the Ref Price)
Since the booking price is not higher than the Ref Price, the TA does not earn any commission. Therefore, the correct answer is Rs. 0.
This concept is important in understanding how commissions are calculated in the travel industry and how the booking price and Ref Price determine the commission earned by the TA. It is crucial to remember that the commission is only applicable if the booking price exceeds the Ref Price.