Overview
When setting up a rate, you have two options:
Manually input daily rates: Manage and update each rate individually
Derive daily rates: Rates automatically adjust based on another rate using a percentage or fixed amount
Derived rates can be configured at four different levels: rate plan, room rate, channel rate or direct rate.
Using derived rates saves time by automatically updating multiple rates when your base rate changes (seasonal adjustments or channel-specific pricing).
Manual rates
To set up a rate plan, room rate, channel rate or direct rate using manual rates:
Select Manually input daily rates under the Rate setup settings
Update rates through the Distribution > Inventory
Set your minimum rate in Setup > General information to prevent rates from being set too low.
Derived rates
To set up a rate plan, room rate, channel rate or direct rate using derived rates, select Derive daily rates under the Rate setup settings.
You can derive a rate by an:
Amount
Percentage
Amount and then percentage
Percentage and then amount
Whenever you update the prices for the standard rate, the derived rates will also adjust accordingly.
Examples:
Set up a ‘Best available rate’ as your base rate
Create a ‘Non-refundable’ rate at 10% less
Add a ‘Breakfast included’ rate at 20 more
Common uses for derived rates
Breakfast included: Increase the rate by a specific amount for daily breakfast included
Release period / advance purchase: Discount the rate by a specific amount or percentage if your guests book a certain number of days in advance
Non-refundable: Discount the rate by a specific amount or percentage to secure a non-refundable rate
Length-of-stay: Discount the rate by a specific amount or percentage if your guests book a certain number of nights
Room views: Increase the rate by a specific amount or percentage for rooms with a view, for example an ocean view room would have a higher rate than the best available rate with a garden view
Notes:
You cannot directly update derived rates in the Inventory grid
Use rate overrides for occasional exceptions. Consider switching to manual rates if you need frequent overrides.
Derived rates at different levels
Rates can be derived at four levels:
Rate plan: (the highest level) will affect all room rates associated with the rate plan, including the rate plan’s channel rates and direct rates.
Room rate: Override rate plan pricing for a room rate, if needed. This will also affect the associated channel rates and direct rates.
Channel rate: Specific to rates on certain channels. Note: it’s recommended not to add an override for the rate plan or room rate as well as the channel rate, as this will result in the derivations being applied twice.
Direct rate: Specific to direct bookings. Note: it’s recommended not to add an override for the rate plan or room rate as well as the direct rate, as this will result in the derivations being applied twice.
While you can override higher-level derivations at lower levels, fewer overrides simplify pricing management.