Rate Plan Management

Rate Plan Management

Rate plan management is a critical module that forms the foundation of the hotel's revenue strategy, enabling flexible pricing for different periods, channels, and guest segments. Properly configured rate plans provide both competitive advantage and enable revenue optimization.

Rate Plan Creation

In the rate plan creation process, a plan code and plan name are first determined. For example, plans such as BAR coded Best Available Rate, PROMO coded Promotional Rate, or CORP coded Corporate Rate can be defined. Validity start and end dates, minimum length of stay, and cancellation policy are set separately for each plan. The active or inactive status of the plan is controlled with a single setting.

Seasonal Pricing

Seasonal pricing enables prices to be automatically adjusted according to demand fluctuations throughout the year. Seasons are classified as low season, mid season, high season, and peak season. Start and end dates are defined for each season, and prices automatically change when the relevant period begins. Additional pricing periods can be created for holidays, festivals, and special event dates. For example, special prices can be applied during New Year's week or religious holiday periods.

Channel Differentiation

Channel differentiation enables different price levels to be set for each sales channel. The lowest price is given for direct reservations made through the hotel's own website, while a higher price equal to the commission rate can be applied for online travel agencies. Channel-based price differences can be defined as a percentage or fixed amount. This approach should be managed in accordance with the price parity strategy.

Child Pricing Policy

The child pricing policy is configured as a separate section within the rate plan. Free, discounted, or full-price options are determined according to age ranges. Generally, ages zero to six are defined as free, seven to twelve as fifty percent discounted, and over twelve as full price. These age ranges and discount rates can be customized according to the hotel's policy.

Extra Bed Fee

The extra bed fee is defined as a nightly fixed amount for each bed added beyond the room capacity. Whether the extra bed fee varies by board type can be configured. A crib is generally offered free of charge, but a fee can be defined if desired.

Rate Plan Hierarchy

A hierarchy can be established among rate plans. Sub-plans derived from the main plan are defined as a percentage discount or surcharge on the main plan's price. When the main plan price changes, sub-plans are automatically updated. This approach greatly simplifies the management of dozens of rate plans.