Overview
The pricing tool optimises the revenue strategy of all the office's properties it is linked with.
It is composed of a series of pricing factors that, combined together, interact with the property's base price.
- In the main menu, go to Configuration > Pricing tool
- Select the pricing tool you want to edit
- Click on Manage
You can navigate between the factors by clicking on each tab.
On the percentage fields, add a '+' if you want to apply a positive value, or '-' for a negative.
N.B.: always click on save at the bottom of each tab to keep the changes you made and on Update now to apply changes on your active properties.
List of pricing factors
| Seasonality | The variation is applied to all the days of the month |
| Short stay | The variation is applied over a short date range (1, 2, or 3 days) between two reservations |
| New property | The variation is applied according to the date interval range between the property's activation date and the reservation starting date |
| Events | This is a factor in which you can create your own events: the variation will be applied to the selected date range |
| Minimum stay events | This is a factor in which you can create your own events where you can set up different minimum stay periods that will be applied to the selected date range |
| Time factor | The variation is applied according to the date interval range between the present date and the reservation starting date |
| Day of the week | The variation is applied to the days of the week |
| Minimum stay | In this factor you can't apply any price variation, but instead set up different minimum stay periods according to the date interval range between the present date and the reservation starting date |
| Occupancy rates | The variation is applied according to the date interval range between the present date and the reservation starting date, depending on property's occupancy rate: for more information about the calculation, check the section below |
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Night Cap
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Increase price when the remaining allowed nights are being used faster than the property’s available days. |
How it works
Once the variations in the pricing tool are set, the property's daily rates will be automatically affected from the changes applied.
In order to check how the pricing factors are interacting with the base price, follow the steps below:
- In the property page, go to the calendar tab
- Click on the date you want to review
- In the pop-up window, open the details (suggested price) tab
The price variation generated by the pricing factors will sum up with the base price to generate the final price.
N.B.: the final price shown in the calendar is not the price that guests will pay for the reservation as, on top of it, the system will apply a price markup
Minimum price safe rate
If the rate calculated by the pricing tool goes below the minimum price value set at property level, this last one will override the tool, in order to prevent the prices to go too low.
N.B.: the minimum price safe rate will not be applied to any additional discounts set via the pricing rules
Events factor
If you want to create your own events, click on Add a row
Fill the form:
- Add a name
- Add the variation
- Add a start and end date
Click on Save to create the event
Occupancy based factor
This factor will help pushing the right increment factor for all properties with high occupancy rate whilst gradually discounting the properties that need a push to convert bookings.
The following formula is aimed at standardising an increase in prices for all properties with good occupancy irrespective of the time factor, whilst gradually reducing the reduction in prices for all properties with lower occupancy. (The value of ε decreases as the number of days increase)
- . ε : Time factor
- . η: Occupancy Variable
The matrix below depicts the discounts and the increments across different time periods and different occupancy levels.
| Value of ε | 0.04 | 0.03 | 0.02 | 0.01 | ||
| Real Occupancy | Value of η | 0-15 days | 15-30 days | 30-60 days | 60-90 days | 90-365 days |
| 0-10% | -5 | -0.5 |
-0.35 |
-0.12 |
-0.03 |
0 |
| 10-20% | -4 | -0.4 |
-0.28 |
-0.09 |
-0.02 |
0 |
| 20-30% | -3 | -0.3 |
-0.21 |
-0.06 |
-0.01 |
0 |
| 30-40% | -2 | -0.2 |
-0.14 |
-0.02 |
0 |
0 |
| 40-50% | -1 | -0.2 |
-0.14 |
0 |
0.01 |
0.05 |
| 50-60% | 1 | -0.2 |
-0.07 |
0.04 |
0.04 |
0.08 |
| 60-70% | 2 | -0.1 |
0 |
0.08 |
0.08 |
0.12 |
| 70-80% | 3 | -0.1 |
0 |
0.12 |
0.12 |
0.16 |
| 80-100% | 4 | -0.1 |
0 |
0.16 |
0.16 |
0.18 |
To set this, we have the ability to choose the factor value, which decides how much discount and increment would actually be applied.
For instance, if you chose a factor value of 50% for 0-15 days, then the table would change to 50% of the values mentioned in the matrix above (-0.25 for 0-10%, -0.2 for 10-20%, so on).
For the D90–365 timeframe, occupancy is calculated in 30-day batches (D90–120, D120–150, D150–180, etc.), and the increase is applied to each batch.
You can also edit the matrice of occupancy rate with assigned factors, click on Show.
Night cap factor
This factor increases prices only when a property’s remaining bookable nights are being used faster than expected (factoring in seasonality). This is useful only for properties with annual night limits (e.g. regulatory caps) where the goal is to maximize revenue on limited inventory.
- Compares remaining nights vs remaining available days
- Builds a Pressure Index to measure scarcity
- If nights are being consumed faster than expected → higher price multiplier
- If not → little or no increase