Setting up Pricepoint
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      3. Setting up Pricepoint

      Setting up Minimum and Maximum prices

      Configuring the Rate Setup: Balancing Flexibility and Strategy with Powerful Reporting Tools

      Setting up the Rate Setup is a crucial step in defining the pricing framework for your property. The framework determines the price range—Starting Price, Minimum Price, and Maximum Price—within which Pricepoint optimizes pricing to balance Average Daily Rate (ADR) and occupancy.

      What Is the Rate Setup?

      The Rate Setup is where you configure the framework, a predefined price range that allows Pricepoint to dynamically adjust prices based on demand. The framework ensures that Pricepoint recommends optimal prices within boundaries set for each room type, month, and optionally, weekdays and weekends. A well-configured framework minimizes manual interventions and ensures Pricepoint operates efficiently.

      Additionally, the interface provides metrics like ADR, revenue, and occupancy to help shape your pricing strategy effectively.

      Steps to Configure Rate Setup

      1. Navigate to Rate Setup

        • Go to Settings > Rate Setup.

      2. Choose Room Type

        • Select the Parent Room for which you want to configure the pricing framework. (Refer to the article Understanding the Room Setup for more details.)

      3. Set Starting, Minimum, and Maximum Prices

        • By default, the Minimum Price is -40% of the Starting Price, and the Maximum Price is +40%.
        • Adjust these values as needed, ensuring a minimum gap of 20% between the Starting Price and the other values.

        Example:

        • Starting Price: $100
        • Minimum Price: At least $80 (default: $60)
        • Maximum Price: At least $120 (default: $140)

      4. Customize Weekends

        • Configure weekends independently or derive them from weekday prices using a percentage or fixed modifier.

      5. Copy Prices (Optional)

        • Use the Copy Prices feature to duplicate pricing from another room type or last year’s ADR. Add modifiers (e.g., +20%) to adjust copied prices for weekdays or weekends.

      Important Notes

      The Rate Setup is designed to create sufficient room for Pricepoint to find the optimal price. It enables prices to increase when possible and decrease only when necessary within the defined framework.

      • Avoid Micromanagement: The Rate Setup should not be micromanaged or changed too frequently. Instead, it should be revisited regularly to adjust the framework (price range) for factors such as inflation or changes in demand dynamics for the next months or year.
      • Addressing Frequent Changes: If you find yourself needing to adjust the Rate Setup often, it likely means the price range provided to Pricepoint is too restrictive. In such cases, consider widening the framework or consult the article How to Use Demand Levels to Adjust Prices or contact Customer Success for guidance.

      Powerful Reporting and KPIs

      The Rate Setup screen includes robust reporting tools that display key performance indicators (KPIs) from previous years, such as:

      • ADR
      • Occupancy
      • Revenue

      These metrics can be viewed side by side with the current price range (framework) to help you make informed adjustments. This historical and comparative data provides valuable insights to refine your pricing strategy effectively for future periods.