Should you use derived rates for your hotel?

What are derived rates?

Derived rates are a type of rate that can be set up in the Hotel Executive PMS to allow hotel owners, managers and revenue managers to “batch” update rates rather than have to adjust them individually.

This time-saving feature, which can enable you to control a multitude of rates from a single base rate, greatly reduces the risk of making errors. Derived rates are linked to the base rate and price variation between them can be a set amount or a percentage.  

When is it good to use derived rates?

Rates with meal allowances – for example, you may wish to derive your B&B rate from your room only rate, adding an uplift of, say, £15.00 for breakfast. 

Room occupancy – you may wish to derive a single occupancy rate from your standard rate giving a discount of say, 20%.

The three example rates shown to the top right in green are each derived from one base rate, room only.  This means that to make a price change across all four rates, only the one base rate, room only, needs to be changed. The other rates change automatically.

Promotional rates – these can be set up to derive from your standard rates incorporating a discount in the form of a percentage or an amount.  Rules and restrictions can be applied to promotional rates such as arrival date rules, minimum and maximum nights, quantity, and closed to arrival.s – these can be set up to derive from your standard rates incorporating a discount in the form of a percentage or an amount.  Rules and restrictions can be applied to promotional rates such as arrival date rules, minimum and maximum nights, quantity, and closed to arrival.

If you’d like to learn more about our hotel reservation system and how it can benefit your business get in touch.