Rate Derivation

Rate Derivation

Pricing can also be managed by utilizing derivative options. Deriving rates allows a parent rate to manage the pricing for the rates that are set to derive from it.
 
In order to use pricing derivatives, the following conditions must be met
  • Parent and child rate plans must have the same multiple LOS setting
  • Parent and child rate plans must have the same pricing model (per room/per person)
  • Parent and child rate plans must be the same currency

To derive a rate, click on the associated to the rate plan to derive from a parent rate.

The following page will return:


Reference product: select the parent rate from the drop-down menu 

Absolute value derivation: selecting the radio button will choose the option to derive pricing based on a set value per person/per room. Each field should be completed with the value required. 

Ex. to create a child rate that increases the pricing of the parent rate by $10 per person, the fields would be completed as follows:



Attention! Under the minimum rate entry, the highest value among those entered for each occupancy level must be entered; this value serves to discount the minimum rate of the reference product. 

Increase: check this box if the prices should be increased by the values entered (compared to the parent product)

Tax included: select YES/NO from the drop-down menu

Apply to price: select Tax Included/Tax not included from the drop-down menu

Percentage derivation: selecting the radio button will choose the option to discount/increase the pricing of the child rate by a percentage value from the parent rate

Ex. to create a child rate that is discounted by 10 percent from the parent rate, the fields would be completed as follows:


Increase: selecting this will increase the pricing of the parent rate for the child’s rate by the percentage indicated

Rate rounding: choose to round the pricing after derivation: None (equal), 1 (nearest cent), 5 (nearest 5 cents), 10 (nearest 10 cents)

Combined: Selecting this radio button opens the fields to derive pricing based on both percentage and absolute value methods.

Ex. The child rate will first be increased by 20% and then discounted by $5.00 for each adult occupancy


Tax included: select YES/NO from the drop-down menu

Apply to price: select Tax Included/Tax not included from the drop-down menu

Rate rounding: choose to round the pricing after derivation: None (equal), 1 (nearest cent), 5 (nearest 5 cents), 10 (nearest 10 cents)

Derivative conditions: Choose whether the product must take into account the family discount policies applied to the reference product (Derives from the periods of the reference product) or those of the product itself (Use the product's family discount policies)

Once all fields have been completed, click on save. The derivative product will look like this:

After a newly derived rate has been saved, it is possible to create different derivation conditions per period by clicking on the next to the rate to modify the derivations of
  and then selecting


The page looks like this:

To create a new derivation rule select .

A name and a color must be defined, which will be displayed on the calendar:


Complete the derivation settings as if newly deriving a rate.

Apply a new grid to the calendar by selecting the radio button and then applying it to the calendar by day or by period.

Once the selections have been inserted into the calendar click on Save to apply the changes.

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