What is Derived Pricing and what is the advantage of it?

Are you already partner with booking channels such as B.com and Expedia? Then you might have come across the term derived pricing. Derived prices are rates that are dependent on other rates. The idea behind derived prices is that you, as a hotelier, need to manage less individual rates. A good example for commonly used derived prices are non-refundable rates or rates based on occupancies.

Let's say you have a double room that you offer for €100,- a night. You might want to give a 5% discount for corporate guests who stay alone. Instead of having to manage both rates independently, derived pricing enables you to make the single use rate dependent on the standard rate. If you decide to increase your standard rate due to an event in your city, the single use rate will adjust itself accordingly. 

In this example you can see how rates are derived from each other as a base rate.

In this image you can see what the result of the basic rate set up is on in the Rates and Availability overview.

The rate you set up in your accommodation key settings is the rate type with a basic rate. Of course you can always change this which can be done in the Rates an Availability overview.

How do I set up derived rates?

Here are the steps:

Go to your room types in your property settings (key-icon) 
Under the same of the room type, you can add a new room rate.
Give your rate a recognisable name such as '_2 guests - non refundable_'. The name will show on the booking confirmation to your guests as well as on your agenda.
Now you can make it depended on one of the other rates connected to the same room type.
Choose if you want a % or a fixed price.
If you want to add an extra fee, just fill in the amount ( 5 )
if you want to give a discount, fill in the amount with a minus sign ( -5 )
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