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Yield Management Close Discounted Rates

Discounted rates can be "closed" so they cannot be used automatically. In roomMaster, closed rates are not actually stopped from being used, but they automatically convert to the amount of the default rate, the rate code set in Setup > Configuration > Reservations > Default Rate. This is usually RACK rate. This means that if you had a discounted rate such as ENT (Entertainment Card) and this rate were always $50.00 per night, the rate would automatically be adjusted to the default rate amount for any date over this certain percentage.

This is done because it is better to quote the guest a rate, regardless of whether or not the discount/name of the rate can be used or not. Meaning, we'd rather tell the guest the amount of the Government rate for July 4th is $180.00 rather than we don't accept Government rates on July 4th, even though the RACK RATE for July 4th is $180.00.

Example: Let's say you were booking a 6 night reservation, and you did not allow discounted rates when over 90%. ENT Rate is $50.00 per night, every night (defined as a discounted rate) and the RACK Rate taking into consideration Yield Management Adjustments is $90.00 per night. The following rates would apply:

Night 1 60% $50.00 Night 2 92% $90.00 Night 3 55% $50.00 Night 5 95% $90.00 Night 6 91% $90.00

The guest would still see they are getting the ENT (Entertainment card) rate and all statistics and rate codes would show as "ENT", however, a $90.00 rate would apply on 3 of the nights above.

Apply Yield Increase/Decrease to closed discounts

Depending on the setting on the Yield Management configuration tab (Setup > Rates Management > Yield Management), when the discount is closed, this determines if the Rack Rate being used is the Rack Rate or the Rack Rate + Yield Increase.

Example:

Assuming the following ...

  • The Government Rate is $50.00

  • The Rack(Default)Rate is $100.00

  • The current occupancy is 80% and discounts close at 80%.

  • The Increase/Decrease amount for 80% is +$20.00

The following would happen ...

If a guest booked at the Rack(Default) Rate, the amount would be $120.00

If a guest booked at the Government Rate, and the Apply Increase/Decrease to closed discounts is checked, the rate would be $120.00

If a guest booked at the Government Rate, and the Apply Increase/Decrease to closed discounts is unchecked, the rate would be $100.00