Understanding DMC Matrix Rules

It is important to understand both the overall concept and terminology that Tourplan uses when working with Discounts, Commissions and Markups.

When the DCM Matrix is being used, Tourplan analyses all services as they are being entered into a Quote or Booking and looks for matches between the detail stored in the DCM matrix record. This method can quickly become complex and difficult to manage which is why we suggest reviewing the possible parameters and triggers below, and ensuring careful planning is achieved. We also advise discussing the general principles to minimise rule entries covered in the section headed Discussion points prior to implementation/General Principles.

The complexity of the DCM Matrix allows variations of parameters. These include:

• The booking branch, department and booking analysis codes

• The service location, service code, supplier code, product code, and product analysis codes

• The supplier analysis codes

• The booking agent code and analysis codes

• And if a PCM is involved, the PCM analysis codes.

Each DCM record has a Sequence Number, an Entry Type (Discount, Commission or Markup), a Code and a Description.

When processing, it first looks at all DCM matrix records that are either a Discount or a Markup type. Tourplan treats these as the same - the only difference being that the one named 'Discount' has the applied percentage reversed. Markup and Discount apply to the Product Sell price which is why they are treated as the same.

The search of DCM matrix records is by sequence number and if a record is found that meets the criteria, the values are applied. If there is a Markup and a Discount record that could apply, the system stops at the one with the lowest sequence number.

The system then makes the same assessment of the service to check if there is an applicable DCM matrix record that is a Commission type which meets the criteria, and again, if one is found it applies the values from within the rule. This means there could be competing DCM matrix records against Booking/PCM service lines, but equally it means that a Markup can be applied and a small commission offered - during a specific period for example.

Each service in the product database has a Cost price - i.e., the value that is being paid to the supplier.

To this is added a markup for the tour operator. Tourplan is able to have markups in 2 distinct places - within the Product (Product Markup) and/or in the booking (Booking Markup - also applies to Quotations/PCMs).

• With Product Markup, the mark-up is calculated on a service by service basis as each service is entered into the quote or booking.

• Booking Markup is added to the Booking total. A booking can have both Product Markup and Booking Markup.

It is important to note that the applied matrix rule can show within a service, however if there is more than one matrix rule applied i.e. one for Discount/Markup and one Commission the booking will only show the first rule sequence number – allowing some difficulty for users to trace back the applied DMC rules.

More explanation and samples can be found within the User Manual Gateway.

Discount Commission Markup Matrix Sequence

Thought should be given as to how sequence numbers are going to be allocated. If a year-round discount has been allocated a sequence number of 00001 and it was then needed to introduce a discount with a lower sequence number in order to take precedence over the year-round discount, it would be impossible to do retrospectively.

The DCM Matrix sequence number affects which of the rules will be applied to booking service cost rates, therefore before getting started with setting up DCM matrix rules, first identify the different type of contributing factors which will affect the different price rule settings.

Group the different types of factors/scenarios, follow by defining the priority of rules (in terms of which rule should be applied first if the booking matches the conditions set up in the DCM matrix rules).

For example, DCM matrix rules can include the following conditions based on:

• Per product Location / Service Type e.g. Accommodation, Ground Transfer etc…/ specific Supplier / specific Product Code / Price Code

• Product Analysis e.g. Price Range

• Supplier Analysis

• Specific Agent Code / Agent Analysis e.g. Agent’s Country / Agent’s Market / Agent’s Type

• Booking Analysis

• PCM Analysis

• Supplier Market exclusion condition (based on Supplier’s Contract) etc…

When grouping the type of pricing rules, the same type of rule may be created repetitively for different service type, or for different category of Agent etc.

NOTE: Refer back to General Principles to guide you to simplify and minimise the number of rules. Remember the higher the number of rules - the more maintenance will be required moving forward.

Sequence convention applied in the sample table.

1. Rules applied with priority order; smaller range number being used to allow the rules to be applied at booking with consideration of the markup which is applied for a Specific Agent, Specific Country, Country to be excluded from a Market, a specific Market (for all countries which were not excluded in earlier rules) and World Wide costs.

2. Sequence number allows: 0 – 99999 (max 5 digits)

   Instead of starting from 0 or from sequence 1, opt to have bigger gap of sequence range numbers for more flexibility (in case more rules need to be added for each type of rule).

3. In the example given below, 4 digits of sequence being used:

   1st digit refers to the type of rule, based on priority

   2nd, 3rd and 4th digits to allow more combinations based on the criteria/conditions applied to the rule. More digits can be used as part of planning (maximum digit 0-99999).

4. Within the same range of sequence, it is not expected to have any rules created which will cause any conflicts.

   For example: Rules start from 1101 – Apply Markup for a Specific Agent. The same type of rule would repeat for different Specific Agent Codes (generally no conflict should occur against the same Agent Code).

5. For a different Type of Service e.g. Accommodation vs. Ground Transfer, the rules can be setup as per the 5 types of sample rules given in the chart below.

6. Within the same sequence range you may utilise the maximum 5 digits' space to further categorise by Product Service Type e.g. Accommodation, Ground Transfer etc. Using a wider sequence range number would assist to prevent any possible conflict and set up a flexible setting for rates maintenance and adjustment.

DMC Rule Sequence Start at 1101	Rule Type # 1 Categorised by Specific Agent	Markup Percentage	Price Code	Service Type	Product Analysis	Agent Code	Agent Analysis Region (Market)	Agent Analysis Country	Agent Analysis Type / Key Partner (Agent Group)
1101	Apply Markup For Specific Agent	Positive Markup Value ü	ü	If Applicable	If Applicable	Agent A ü	If Applicable	If Applicable	If Applicable
1102	Apply Markup For Specific Agent	Positive Markup Value ü	ü	If Applicable	If Applicable	Agent B ü	If Applicable	If Applicable	If Applicable
1103	Apply Markup For Specific Agent	Positive Markup Value ü	ü	If Applicable	If Applicable	Agent C ü	If Applicable	If Applicable	If Applicable

 

DMC Rule Sequence Start at 2101	Rule Type # 2 Categorised by Specific Agent Country	Markup Percentage	Price Code	Service Type	Product Analysis	Agent Code	Agent Analysis Region (Market)	Agent Analysis Country	Agent Analysis Type / Key Partner (Agent Group)
2101	Apply Markup For Specific Agent Country	Positive Markup Value ü	ü	If Applicable	If Applicable	If Applicable	If Applicable	German ü	If Applicable
2102	Apply Markup For Specific Agent Country	Positive Markup Value ü	ü	If Applicable	If Applicable	If Applicable	If Applicable	Russia ü	If Applicable
2103	Apply Markup For Specific Agent Country	Positive Markup Value ü	ü	If Applicable	If Applicable	If Applicable	If Applicable	France ü	If Applicable

 

DMC Rule Sequence Start at 3101	Rule Type #3 Categorised by Country Excluded from Market Nett Cost	Markup Percentage	Price Code	Service Type	Product Analysis	Agent Code	Agent Analysis Region (Market)	Agent Analysis Country	Agent Analysis Type / Key Partner (Agent Group)
3101	Exclude Agent Country from  Market Cost Price Code	Negative Markup Value (-100%) ü	Target the Price Code (Market Cost) Excluded for the selected country ü	If Applicable	If Applicable	If Applicable	If Applicable	German ü	If Applicable
3102	Exclude Agent Country from  Market Cost Price Code	Negative Markup Value (-100%) ü	Target the Price Code (Market Cost) Excluded for the selected country ü	If Applicable	If Applicable	If Applicable	If Applicable	Russia ü	If Applicable
3103	Exclude Agent Country from  Market Cost Price Code	Negative Markup Value (-100%) ü	Target the Price Code (Market Cost) Excluded for the selected country ü	If Applicable	If Applicable	If Applicable	If Applicable	France ü	If Applicable

 

DMC Rule Sequence Start at 4101	Rule Type #4 Categorised by Market Nett Cost	Markup Percentage	Price Code	Service Type	Product Analysis	Agent Code	Agent Analysis Region (Market)	Agent Analysis Country	Agent Analysis Type / Key Partner (Agent Group)
4101	Apply Markup by Market Cost Price Code (All Agent Country)	Positive Markup Value ü	EU (Europe Market - Nett) ü	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable
4102	Apply Markup by Market Cost Price Code (All Agent Country)	Positive Markup Value ü	AS (Asia Market Nett) ü	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable	f Applicable
4103	Apply Markup by Market Cost Price Code (All Agent Country)	Positive Markup Value ü	AF (Africa Market Nett) ü	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable

 

DMC Rule Sequence Start at 4101	Rule Type #5 Categorised by World Wide Price Code (Applicable to All)	Markup Percentage	Price Code	Service Type	Product Analysis	Agent Code	Agent Analysis Region (Market)	Agent Analysis Country	Agent Analysis Type / Key Partner (Agent Group)
5101	Apply Markup for World Wide Price Code	Positive Markup Value (10%) ü	WW Code (World Wide Market - Nett) ü	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable
5102	Apply Markup for World Wide Price Code	Positive Markup Value (20%) ü	WW Code (World Wide Market - Nett) ü	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable	f Applicable
5103	Apply Markup for World Wide Price Code	Positive Markup Value (30%) ü	WW Code (World Wide Market - Nett) ü	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable	If Applicable