When you modify the number of guests on a reservation—by adding or removing guest cards or accompanied guests—the system recalculates the city tax based on the updated guest count. Here's how the process works and what’s changing in the behavior of the system.
Previous Behaviour
Prior to April 16, 2025, when a user adjusted the number of guests on the reservation page, a pop-up displayed the updated reservation price and gave the following three options:
- OK — Accepted the updated reservation price, calculated from the Prices menu and adjusted for the new guest count.
- Keep Original Prices — Kept the original total price, ignoring city tax changes. Even if guests were added, the city tax remained unchanged.
- X — Cancelled the entire operation.
New Behaviour
The “OK” button behaviour remains the same.
What's new with “Keep Original Prices”?
Now, when you click “Keep Original Prices”, the system will:
- Keep the original room price only
- Recalculate and apply the correct city tax based on the updated guest count
To reflect this change, a new label is shown in the confirmation dialog:
Understanding Room Price and Tax Models
The room price is defined in the Rate Plans menu. Depending on the tax model in your account, the price can be NET(excludes taxes) or GROSS (includes taxes). Here's how each model behaves when guest numbers are changed:
NET Tax Models
When using a NET pricing model, the room price is before tax. Any change in guest count affects the final reservation total.
Example:
- Room price: €10 for 1 guest, €20 for 2 guests
- City tax: €1 per person
- VAT: 18%
Scenario: 1 Night for 1 Person → Add 1 Guest → Choose “Keep Original Price”
You're keeping the original NET room price of €10, even after adding a second guest. However, the city tax is updatedbased on the new number of guests.
Breakdown:
- Original room price (NET): €10
- City tax: €1 per person × 2 guests = €2
- VAT: 18% of (€10 + €2) = €2.16
Total: €10 (room) + €2 (city tax) + €2.16 (VAT) = €14.16
Scenario: 1 Night for 1 Person → Add 1 Guest → Choose “Update Prices” (Click “OK”)
Here, you accept the updated 2-person NET room price of €20. The system recalculates everything based on the new price and guest count.
Breakdown:
- New room price (NET): €20
- City tax: €1 per person × 2 guests = €2
- VAT: 18% of (€20 + €2) = €3.96
Total: €20 (room) + €2 (city tax) + €3.96 (VAT) = €25.96
GROSS Tax Models
In GROSS pricing models, the total price includes taxes, so when guest numbers change, the total amount stays the same—but the distribution between accommodation and city tax is updated.
Example Setup:
- Room price: €10 (1 guest), €20 (2 guests)
- City tax: €1 per person
Scenario: 1 Night for 1 Person → Add 1 Guest → Choose “Keep Original Price”
You're keeping the original GROSS room price of €10, even after adding a second guest. However, since the city tax is based on the number of guests, its value increases, and the accommodation portion is adjusted accordingly.
Breakdown:
- Original total (GROSS): €10
- City tax: €1 per person × 2 guests = €2
- Accommodation fee (calculated as GROSS total – city tax): €10 – €2 = €8
Result: €8 accommodation + €2 city tax = €10 total (unchanged)
Scenario: 1 Night for 1 Person → Add 1 Guest → Choose “Update Prices” (Click “OK”)
By accepting the updated price, the system applies the 2-person GROSS room price of €20 and recalculates the breakdown accordingly.
Breakdown:
- Total room price (GROSS): €20
- City tax: €1 per person × 2 guests = €2
- Accommodation fee: €20 – €2 = €18
Result: €18 accommodation + €2 city tax = €20 total
M04 Tax Model
In the M04 tax model, city tax is not included in the room price—it’s always treated as an extra cost. So when the number of guests changes, the final reservation total is updated accordingly, even if you choose to keep the original room price.
Example Setup:
- Room price: €10 (1 guest), €20 (2 guests)
- City tax: €1 per person
Scenario: 1 Night for 1 Person → Add 1 Guest → Choose “Keep Original Price”
You're keeping the original room price of €10, but because city tax is external in M04, the additional guest triggers an increase in city tax. This increases the total cost.
Breakdown:
- Room price: €10 (unchanged)
- City tax: €1 per person × 2 guests = €2
- Final total: €10 (room) + €2 (city tax) = €12
Result: €12 total — room price unchanged, city tax updated
Scenario: 1 Night for 1 Person → Add 1 Guest → Choose “Update Prices” (Click “OK”)
You’re applying the new 2-person room price, and the city tax is also updated based on the new guest count.
Breakdown:
- Updated room price: €20
- City tax: €1 per person × 2 guests = €2
- Final total: €20 (room) + €2 (city tax) = €22
Result: €22 total — both room price and city tax updated
Important Notes
- If a reservation has derived services, the original price will include the value of those services. As a result, the “Booked Price” and “Original Price” may differ.
- If city tax is percentage-based, guest number changes do not affect the quantity of the city tax line in the Folio. The value will still update if a new price is applied.
- If the reservation is moved to a unit with different city tax rules, the pop-up displays the price based on the new unit’s tax configuration.