A Derived Rate Plan allows hoteliers to set pricing based on a base rate, ensuring automatic updates across different rate categories. This strategy saves time, maintains pricing consistency, and optimizes revenue management across all online booking portals.
Why Derived Rate Plans Matter?
- Ensures Pricing Consistency: Changes in the base rate automatically adjust all linked rates, reducing errors.
- Saves Time & Effort: No need to manually update multiple rate plans across platforms.
- Enhances Revenue Strategy: Offers flexibility for discounts (e.g., non-refundable, long stays) without manual adjustments.
- Prevents Overpricing or Underpricing: Keeps rates aligned with demand while maintaining profitability.
Key Factors to Consider
- Set a Strong Base Rate: Ensure the main rate is competitive and updated regularly.
- Define Clear Rate Rules: Specify discount percentages or markups for each derived plan.
- Sync Across OTAs: Ensure all connected platforms update automatically.
- Monitor Performance: Analyze booking trends and adjust base rates accordingly.
Hygiene Factors to Maintain
- Avoid complex rate structures that may confuse guests.
- Ensure rate parity across all linked OTAs.
- Regularly review pricing strategies to stay competitive.
A well-implemented Derived Rate Plan streamlines pricing, boosts efficiency, and maximizes revenue while reducing manual work—making it an essential tool for modern hoteliers.
