Click here to learn what's new in the latest Rate Types update, and here to learn more about working with rate types!

Manage Your Rate Types

A rate type allows you to manage your rates and restrictions across a specific set of rooms. Rate types are mapped directly to the rates the business would like to offer. For example, if the business wants to offer a Best Available Rate, an Early Bird Rate, and a AAA Rate, you would configure three rate types, respectively.

A rate type applies to a set of rooms. Additionally - restrictions, customer group and Promotion codes, deposit policy, package items, and Yield Management Plan are all configured on a rate type. This allows greater flexibility and allows you to do some interesting things (such as configuring your Early Bird rate type with a 100% deposit and your Best Available Rate with a 50% deposit).

Rate types can be configured by going to the Settings page and clicking on Rate Types. Once there, you can create or update a rate type.

Details Tab

The first tab of each rate type is the Details tab. This is where the basic information of the rate is configured like name, descriptions, qualifier, included room types, and deposit. Typically, the rate's details do not change frequently.

Rate name and short description

 1. NAME
The name of the rate type. This will be shown on the external booking engine to the customer to distinguish rate types. The name of the rate also displays at the top of the Edit rate type page.

The NAME must be unique among your other rate types.

2. DESCRIPTION DISPLAYED IN THE BOOKING ENGINE: The description of this rate type will be displayed on the booking engine (unless the rate type is designated for staff use only). This box supports simple HTML formatting (see image for examples). 

Rate qualifiers

Rate qualifiers: This allows the customer to qualify for a rate type. These are global settings for the entire rate type. Related: Booking Engine: Walk through
 

3. THIS RATE IS AVAILABLE TO: The following options determine who will be offered this rate on the booking engine:

    All Guests: anyone doing a search on your booking engine.

    Customer Group: only guests who indicate they are part of this group are offered this rate. For example: If a Customer Group of 'AAA' is configured, a customer would need to indicate he is a AAA member on the booking engine to see this rate type.

    Promotion Code: only guests who manually type the Promotion code into the Promotional Code box on the booking engine are offered this rate.

    Staff Only: this rate type will not be offered online at all, but will be available for staff use on the Reservation Calendar.

4. MINIMUM NIGHTS: The minimum night search required for a guest to be offered this rate type. For example, if MINIMUM NIGHTS is set to 2, only guests searching for at least two nights will see the rate type. Related: Understanding Minimum Nights Video

5. MAXIMUM NIGHTS: The maximum length of stay allowed to select this rate. For example, if MAXIMUM NIGHTS is set to 2, only guests searching for at most two nights will see the rate type.

6. ROOM TYPES: Rooms that are selected will be associated with this rate type. The room types with unchecked boxes will not be available to this rate type.

Pricing (Derived Rate Types)

 7. PRICING:
Determine whether or not this rate type has rates and restrictions which are set manually (like your Best Available or Standard Rate), or if this rate type is derived from another rate type in ThinkReservations. Related: Working With Rate Types Video

Derived Rates can include a dollar or percentage adjustment above or below the rate type they are derived from. For example: A Repeat Guest Rate type set up as a derived rate from the Best Available rate with a -15 percent adjustment. Because it is derived, if the Best Available rate is updated to a new price, the Repeat Guest rate will update automatically. 

**Please note: adjustments on Derived Rates do not override the selected Yield Management Plan.

8. YIELD MANAGEMENT PLAN: Select the yield management plan that applies to this rate type. Yield management plans must first be configured in Settings > Yield Management Plans. If the rate type is derived from another rate in your account, the yield management plan selected will apply after any adjustment selected.

Deposits and Taxes

9. DEPOSITS: This deposit strategy will be associated with this rate type. You can choose a Percentage, Number of Nights, or a Flat Fee. Determine any exceptions, like collecting the full balance for single night stays or last-minute reservations. Decide if taxes and items are collected with the deposit.

10. TAXES:  Taxes may be overridden if the rate type is an exception to tax rules. For most rate types for most properties, taxes are not overridden. An example might be an Airbnb rate type if Airbnb remits taxes on your behalf. Related: Getting Started with Airbnb

Packages and items

11. PACKAGES AND ITEMS: If IS THIS RATE A PACKAGE? is marked Yes, the rate type will be lumped with other package rates on your booking engine if at least 3 package rates are configured on your account. You can add items automatically to the reservation as a package that will include the room and any number of other items. Click the Add Item button to add items to the bill.

NOTE: Added items will be bundled, but the guest's bill will only indicate a package. Ensure that the rate type DESCRIPTION DISPLAYED IN THE BOOKING ENGINE field appropriately identifies what is included.

INCLUDED ITEMS:

Add and configure the package items with the below parameters.

  • ITEM - Choose from the drop-down the item(s) to add to the reservation.
  • LIST PRICE - This is the programmed price for the item. If you don't override the price, this is how much the guest will be charged for the item.
  • OVERRIDE PRICE - You can configure a new price. Negative values are allowed.
  • FREQUENCY - The fulfillment date for the item. Choose between first, last, or every day.
  • PER GUEST - The item can be automatically added once per guest. Choose Yes or No.
  • To remove an item, click the X on the right.

Related: Create a Room Package

Rates & Restrictions

The Rates & Restrictions tab of a rate type is where prices and restrictions are configured. Rooms are listed on the left, similar to the Reservation Calendar. If rooms are grouped into room types, the room type is listed instead of the individual room name along with the number of rooms within that type in parenthesis. 

Each day is displayed as a cell in the grid. Each cell shows the unit's price (before yield management adjustments), restrictions, and if applicable, the number of available units of that room type. Reservations are signified by dark gray blocks. Blackouts are signified by dotted outlines.

At the top left is a Jump to Date tool which allows you to see into the past and future. The Today button returns the calendar to today's date.

The Edit toggle allows you to control the information displayed as you manage data. When in Summary, prices and all restrictions can be edited at the same time. To reduce the calendar, toggle so that the calendar only displays the data you would like to modify. For example: if Price is selected, only prices will display and only prices may be updated. 

Restriction Types

Seven restrictions can be configured, although typically a business will only configure a subset of these:

  • Price: Prices are required. If the price is not configured, the room-rate type combination will not be bookable by either the internal reservation calendar or external booking engine. To lower the price, enter a negative value with "Adjust by percentage" or "Adjust by dollar."
    Related: Setting Rates
  • Minimum nights on arrival: If a customer is arriving on a date that has minimum nights on arrival set, they must meet the minimum nights indicated. If reservations have been made that make the minimum nights infeasible, then the minimum nights will automatically be adjusted. For example, if Friday has minimum nights on arrival set to 2, then someone who tries to book a room on Friday must stay at least two nights. If Saturday is already reserved, then the minimum night on arrival for Friday will automatically adjust to 1.
  • Minimum nights through: If a customer is staying on a date that has minimum nights through set, they must meet the minimum nights indicated. If reservations have been made that make the minimum nights infeasible, then the minimum nights will automatically be adjusted. For example, if Friday has minimum nights through set to 3, then someone who tries to stay Thursday and Friday must stay at least one more night. If Wednesday and Saturday are already reserved, then the minimum night through for Friday will automatically adjust to 2.
    Related: Setting your minimum nights
    Related: Minimum Nights on Arrival vs. Minimum Nights Through
  • Maximum nights on arrival: A customer arriving on a date that has maximum nights on arrival set must stay no more than the maximum nights indicated.
  • Maximum nights through: A customer staying on a date that has maximum nights on arrival set must stay no more than the maximum nights indicated.
  • Closed on arrival: XA: Customers cannot check-in on a date that is closed on arrival. Guests can still stay through this day, but not arrive on days you have this set.
  • Closed on departure: XD: Customers cannot check-out on a date that is closed on departure. Guests can still stay through this day, but they cannot check out on days you have this set.
Set Pricing/Rates and Restrictions

The Rate Type Calendar makes it easy to set your restrictions across many rooms and dates. There are three ways to configure rates and restrictions using the Calendar:

  • Click directly on the price you want to change. Type the new rate to update the cell.
  • To change a restriction on a singular date, click on the cell, then the Modify button. This gives you a text box where you can change the restriction for that specific room-date pair.
  • Click multiple cells that you want to change by clicking and dragging. Holding down the Ctrl key allows you to select cells that are not next to each other and holding down the Shift key will connect two selections. Then continue with the Modify button. 
  • Use the Modify tool. The Modify tool lets you choose dates and rooms. This is the easiest option for setting bulk restrictions. Select the Date range, Days of the week, and Room Types you would like to adjust. Click Select. 

  • The Modify tool allows you to make multiple changes at once if the Rates & Restrictions calendar is toggled to Summary. Decide what changes to make and click Update once complete. 


For more detailed instructions on settings your rates, click HERE. For a video, see below:


S
Sean is the author of this solution article.

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