This article refers to the Cloud version. For the Desktop version, click HERE.
Set up the Rates and Tiers for each room type during a season
Go to Management > Rates > Room Rates
Each of the three windows on the screen work in conjunction.
1- Select the season;
2- Select the Room Type;
3- Enter the Base/Rack Rate for that room type for that season;
4- Enter the Tier rates if you will use them either under the manual or the auto-tiering feature.
Go through each room type and enter the rates, like above.
5- Enter any Weekly and Monthly rate and the frequency of posting. See below for more explanation;
6- If you are set up for weekend rates, make sure you do the same in the Weekend Rates section;
7- Use the tools available to go faster - see below;
7- Click Save before switching to any other screen.
This tool is actually an advanced calculator.
Choose the Starting Tier (rate of reference) and the Target Tier, and the amount there should be between both of them.
It will not modify the rates in between.
For example, if I choose my base rate as Starting Tier and Tier2 as the Target Tier and I choose $15 of offset, it will add $15 from the Base Rate to the Tier2 rate.
It will not modify the Tier1 rate. However, it will update the Tier2 rate for every number of persons.
You can modify only one tier at a time, but one completed can do another one without having to close and reopen the tool.
If you will have the same rates for two different room types, you can copy from one to another, avoiding you to re-enter the same data for the other room type.
Choose the Room Type of reference, from which you want to copy the rate, and then the target room type to which you will copy the rate.
Click OK when done.
It will copy any rates from weekdays as well as weekend rates.
Weekly and Monthly Rate
Frequency of posting
Once you have set up the Monthly Rate Option (for Monthly Rates) and the rates you wish to apply weekly and/or monthly, you have to ask yourself the frequency of posting.
Do you want the rate to be divided and posted every day or posted at once, once a week, or once a month? This choice will have some consequences in the reports.
The frequency will also have to be set up in the Seasons screen.
Set up the Monthly Rate Options
Go to Management > Rates > Seasons > Monthly Rate Options
This setup will make you choose how many days are there in your monthly rate:
- Calendar: the monthly rate will not change, but if you post Daily, the rate will change every month based if the month is 28/30 or 31 days;
- 28 days: If you post Monthly, the charge will be posted every 28 days. If you post Daily, the rate will be the monthly rate divided by 28;
- 30 days: If you post Monthly, the charge will be posted every 30 days. If you post Daily, the rate will be the monthly rate divided by 30;
- 31 days: If you post Monthly, the charge will be posted every 31 days. If you post Daily, the rate will be the monthly rate divided by 31;
If it is set up for 30 days or 28 days, what happens during the months of 31 days? It is posting a 31st time at the 30 days rate or it is starting the new month early?
And what about if they start the month set up at 30 days and after a couple of days are changing to 31 days, will the system adjust, or will VM wait until the end of the started month to start on the new setup?
If it’s 30 days, it will post for exactly 30 days from the day the customer checks in. The reservation would go by the number of days that are in that field when they check-in.
If it is changed after they have stayed a few days it will not change any reservation already checked in.
Post weekly or monthly?
Once any folio has a zero balance it can be checked out, having a weekly and monthly rate on the reservation does not change anything, they can be checked out at any time.
However, if the room charge is posted monthly in one lump sum on the folio, it does not report as one lump sum to the revenue reports, it will report as a daily amount.
For example, if I have a $1500 monthly rate, my monthly settings are set to $30 days. When posting monthly the folio will show $1500 on the first day. In the background, only $50 is posted a day (1500/30).
If $1500 showed up all at once in the reports this would inflate the ADR on the first day then deflate the ADR on the remaining days.
Even if you check this guest out after 10 days for the next 20 days $50 a night will be posted to equal 1500 displayed on the folio. It has to do this to stay in balance.
This can be confusing but it is necessary to keep the reports balanced.
We recommend you not to use the Weekly or Monthly post setting and instead post the rate Daily.
It will then post the rate daily to the folio and never post a lump sum.
Watch the Walkthrough Video