Rate Plan Configuration

Use Rate Plan setup to define the unqualified rates that G3 RMS can use for Best Available Rate (BAR) pricing decisions. After you create Rate Plans and their corresponding Rate Details, they become available for G3 RMS to choose in its optimization.

Share your pricing strategy with G3 RMS, so the system can pick from the correct price range. Review Best Practices before you set up your Rate Plans.

Rate Plan setup consists of the following setup steps:

  1. Add Rate Plans
  2. Add Seasons to Rate Plans
  3. Setting up a Rate Plan Strategy

Sharing your Pricing Strategy with G3 RMS

Rate Plans are a key input into G3 RMS. The system can only produce the best possible BAR decisions if your rate plan setup is optimal. Use Rate Plan and Mass BAR Configuration to share your pricing strategy, following these steps:

  1. Determine the lowest and highest BAR that you want to sell in a year. These values are the upper and lower limits of your pricing.
    • Consider the lowest BAR price point by day of week that you sell when demand is low. This price point becomes the lowest Rate Plan in the rate setup.
    • Select the highest price point in your pricing by determining the maximum price you can achieve in your market when the hotel is forecasting to fill. This price point becomes the highest Rate Plan in the setup.
  2. Determine the number of BAR levels in between.
  3. Set up your rates in Rate Plan setup with the highest and lowest BAR levels and the increments between. Use these two tabs:
    1. Rate Headers: define the number and names of your Rate Plans.
    2. Rate Details: manage the prices and seasons of your Rate Plans, by room type.

    Alternatively, use the Mass BAR Configuration template to set up Rate Plans via an Excel template.

  4. Use Mass BAR Configuration to export, review and verify your Rate Plans, particularly if you have many levels and seasons.
  5. Use either of the two Strategy options in Rate Plan setup to limit the availability of BAR levels. This might be necessary to ensure that G3 RMS chooses only appropriate rate levels. For example, you may want the lowest BAR to be available only as an override during your peak season.
  6. After G3 RMS produces decisions, check your pricing strategy by reviewing the Highest and Lowest BAR on the Summary tab of the Business Analysis Dashboard.
  7. If your property uses the BAR by Day pricing method, you must also set up Room Type Offsets.

Setup Steps

Before you set up, review Best Practices.

Adding Rate Plans

  1. Click , then Decisions, and then Rate Plan. The Rate Headers tab displays.
  2. Click the add icon .
  3. Enter a Rate Plan Name.
  4. Enter a Description.
  5. Select a Start Date from the calendar.
  6. Select an End Date from the calendar. We recommend that you set a date far in the future. All future Rate Details that you define in the next step must fit into this date range.
  7. If your Reservation SystemClosed The primary reservation system, like a PMS or CRS, that provides data to G3 RMS. The data from that one system is used by the RMS to forecast, optimize and produce controls. The controls are sent to all selling systems, which for some integrations may exclude the reservation system. allows the import of Rate Plans and Details, you see the Ignore PMS/CRS Updates option. We recommend that you do not select this option unless you want to manage all rate plan information in G3 RMS instead of in your reservation system.
  8. Select the Apply Start and End Dates to all Rate Headers checkbox to apply the same date range to all new Rate Plans.
  9. Click the save icon .
  10. Continue following these steps to add Rate Plans until you add all required plans.

Editing or Deleting Rate Plans

For properties that use BAR by LOS, if you delete or edit Rate Plan names only in G3 RMS and not in your Reservation System (usually PMS or CRS), you might break the delivery of pricing decisions to your reservation system. These Rate Plan names typically need to be the same across the systems.

If you delete a Rate Plan that is used for future pricing decisions or price overrides, it is removed as the decision or the override for all relevant arrival dates. The Pricing Management Calendar displays a no pricing decision icon for those dates until new decisions are selected in the next optimization.

  1. Click , then Decisions, and then Rate Plan. The Rate Headers tab displays.
  2. If necessary, change the selected checkboxes to view only Present or Future Rate Plans. Or use the search box to filter by name of the Rate Plan.
  3. Click the edit icon for the Rate Plan that you need to edit and make the appropriate changes.
  4. Click the delete icon for the Rate Plan that you need to delete.
  5. Click the save icon .

Setting up Rate Details

When you change Rate Details by editing its seasons, adding a new season or deleting a season, a flag icon is displayed in the menu bar. It indicates that the current pricing decisions are not aligned with the current Rate Plan setup . You can choose to update the pricing decisions manually or wait for the next optimization. See Sync for more information.

Adding Seasons to Rate Plans

  1. Click , then Decisions, and then Rate Plan. The Rate Headers tab displays.
  2. Click the Rate Details tab.
  3. Click the open icon before the Rate Plan Name.
  4. Choose a method to add new seasons:
    1. Copy future seasons and offset the rates from another rate. This option is available only for rates without any seasons and when at least one other rate with a season and shared dates exists:
      1. Select the Offset from checkbox.
      2. Select the Rate Plan from which you want to copy seasons. Only seasons that include the System Date and future dates are available.
      3. Enter a positive or negative value to offset the copied season's rates.
      4. Click Apply.
      5. Click the open icon for the season to view and edit the populated rates for each room type and day of the week, as needed.
    1. Enter a new season:
      1. Click the add icon .
      2. Select a Start Date and an End Date for the season from the calendars.
  5. Choose a method for adding rates or adjusting the copied rates for room types. You must enter rates for at least one room type.
    1. Copy and offset the rates from one of the Rate Plan's existing seasons:
      1. Select the Offset from checkbox.
      2. Select a season from the menu. Only seasons with end dates in the future are available.
      3. Enter a positive or negative value to offset the rates of the copied season.
      4. Click Apply. The rates for the room types that you set up in the copied season display, adjusted with your offset.
    2. Enter a rate in the first field following the room type name. The rate displays for all days of the week for that room type.
  6. Edit rates for each day of the week or room type, as needed.
  7. Click Apply.
  8. Continue to add seasons as needed.
  9. Click Save.

Editing or Deleting Rate Plan Seasons

When you delete a season, the pricing decision is invalidated for all future dates in the season where this Rate Plan was used as the pricing decision. The Pricing Management calendar displays a no pricing decision icon for these future dates. These pricing decisions update when the next optimization runs.

  1. Click , then Decisions, and then Rate Plan. The Rate Headers tab displays.
  2. Click the Rate Details tab.
  3. If necessary, use the search box to filter by name of the Rate Plan.
  4. Click the open icon before the Rate Plan Name.
  5. If necessary, change the selected checkboxes to view only Present or Future Seasons .
  6. Click the open icon before the season to edit or delete.
  7. Make the necessary changes:
    1. Change existing values and click Apply.
    2. Click Delete and click Yes to confirm the deletion. The season is marked with a remove icon .
  8. Repeat the steps as needed to adjust other seasons.
  9. Click Save.

Setting up a Strategy by Room Class

Setting up a strategy is an optional step after you set up Rate Plans. A strategy allows you to restrict the availability of your unqualified or BAR price points. See Consider Setting Up a Strategy for more information about when to use one.

Setting a Default Strategy by Room Class

  1. Click , then Decisions, and then Rate Plan. The Rate Headers tab displays.
  2. Click the Room Class Strategy tab.
  3. Click the open icon for the Room Class Name that you want to restrict. G3 RMS identifies the Master Class with a blue dot icon . If your reservation system (typically your PMS or CRS) does not support different pricing decisions by Room Class, then the Master Class is the Room Class by which the system bases all its pricing decisions. In that case, the Master Class is the only Room Class to which you can apply price strategies. These details are displayed at the top of the tab:
    • The Associated Room Types for the room types assigned to the Room Class in the Room Class setup.
    • The Order or display order that you set up for Room Classes in Display Preferences.
  4. Select the Rate Plan. By default the Exclude Past Rate Plans box is checked and you can select only current and future Rate Plans.
  5.  Set a restriction on the rate plan using one of these options:
    • Select the User Override Only checkbox if you never want G3 RMS to use this price level during its optimization, but you still want to use it as a pricing override. This option can be useful with very high or low rate plans that should be available only when you choose to use them. This option is the most restrictive of the settings because it makes the rate available only for overrides for all days of the week and seasons.
    •  Clear the Available for Arrival checkbox if you do not want G3 RMS to offer the rate plan for any arrivals on that day of the week. You can still use the rate plan as a pricing override for arrivals on that day. The system can still offer the rate plan for earlier arrivals that stay over that day.
    • Select the minimum and maximum length of stay for which the system can offer the rate plan for arrivals on that day of the week (for properties with BAR by LOS):
      •  MinLOS restricts G3 RMS from offering this rate for fewer nights than the number that you select for a specific day. For example, if you set MinLOS to "3" for Monday, G3 RMS will not offer this rate plan for 1 or 2-night arrivals on Monday.
      •  MaxLOS restricts G3 RMS from offering the rate for a longer length of stay than the number that you select for a specific day. For example, if you set MaxLOS to "4" for Thursday, the system will not offer this rate plan for more than a 4-night length of stay for arrivals on Thursday.
  6. Click Save.

Setting a Seasonal Strategy by Room Class

For reference, the Seasons pane displays the Rate Details schedule, which shows the seasonal rate values for each room type in the Room Class. The seasons are color-coded for past, present and future dates.

Use the Seasonal Strategy section on the right to set up seasonal exceptions to the Default Strategy.

  1. Click the add icon to create a new season.
  2. Select the Start Date and End Date for the period when the strategy applies. Note that, for properties that use BAR by LOS pricing, the system can still offer the rate plan for earlier arrivals that stay over the period that you select.
  3. Select an option from the Control column:
    • Close Rate Plan: The rate plan is unavailable for selection by the system or as an override during the period.
    • LOS and Available for Arrival: Apply the MinLOS, MaxLOS or Available for Arrival settings for the period by clicking Configure . These settings restrict the rate plan for arrivals for specific lengths of stay or on certain days of the week.
    • User Override Only: The system cannot use the rate plan for arrivals for the period, but you can use it for overrides for those dates.
  4. Click the note icon to enter a note with an explanation as to why you restricted this price level for the period.
  5. Repeat these steps to set up additional seasonal price strategies, as needed.
  6. Click Save.
  7. To remove a season, click the delete icon in the Seasonal Strategy pane.

Setting up a Strategy by Rate Plan

Setting up a strategy is an optional step after you set up your Rate Plans. A strategy allows you to restrict the availability of your unqualified or BAR price points. See Consider Setting Up a Strategy for more information.

Setting a Default Strategy by Rate Plan

  1. Click , then Decisions, and then Rate Plan.
  2. Click the Rate Plan Strategy tab.
  3. If necessary, change the selected checkboxes to view only Present or Future Rate Plans. Or use the search box to filter by name of the Rate Plan.
  4. Click the open icon for the Rate Plan Name that you want to restrict. The Start Date and End Date for this rate plan display at the top of the tab.
  5. Select a Room Class.
    • G3 RMS identifies the Master Class with a blue dot icon . If your reservation system (usually your PMS or CRS) does not support different pricing decisions by Room Class, then the Master Class is the Room Class by which the system bases all its pricing decisions. In that case, the Master Class is the only Room Class to which you can apply price strategies.
    • The "All" selection applies only to Seasonal Strategy and cannot be used for the Default Strategy.
  6. Set a restriction on the rate plan using one of these options:
    • Select the User Override Only checkbox if you never want G3 RMS to use this price level during its optimization, but you still want to use it as a pricing override. This option can be useful with very high or low rate plans that should be only available when you choose to use them.
    • Clear the Available for Arrival checkbox if you do not want G3 RMS to offer the rate plan for any arrivals on that day of the week. You can still use the rate plan as a pricing override on that day. Note that the system can still offer the rate plan for earlier arrivals that stay over that day.
    • For properties with BAR by LOS pricing, select the minimum and maximum length of stay for which the system can offer the rate plan for arrivals on that day of the week:
      • MinLOS restricts G3 RMS from offering this rate for fewer nights than the number that you select for a specific day. For example, if you set MinLOS to "3" for Monday, G3 RMS will not offer this rate plan for 1 or 2-night arrivals on Monday.
      • MaxLOS restricts G3 RMS from offering the rate for a longer length of stay than the number that you select for a specific day. For example, if you set MaxLOS to "4" for Thursday, the system will not offer this rate plan for more than a 4-night length of stay for arrivals on Thursday.
  7. Click Save.

Setting a Seasonal Strategy by Rate Plan

For reference, the Seasons pane includes the Rate Details schedule, which shows the seasonal rate values for each room type in the Room Class. The seasons are color-coded for past, present and future dates.

Use the Seasonal Strategy section on the right to set up seasonal exceptions to the Default Strategy.

  1. Click the add icon under Seasonal Strategy.
  2. Select the Start Date and End Date for the period when the strategy applies. Note that, for properties that use BAR by LOS pricing, the system can still offer the rate plan for earlier arrivals that stay over the period that you select.
  3. Select an option from the Control column:
    • Close Rate Plan: The rate plan is unavailable for selection by the system or as an override for the period.
    • LOS and Available for Arrival: Apply the MinLOS, MaxLOS or Available for Arrival settings for the period by clicking Configure . These settings restrict the rate plan for arrivals for specific lengths of stay or on certain days of the week.
    • User Override Only: The system cannot use the rate plan for arrivals for the period, but you can use it for overrides for those dates.
  4. Click the note icon to enter a note with an explanation as to why you restricted this price level for the period.
  5. Repeat these steps to set up additional seasonal price strategies, as needed.
  6. Click Save.
  7. To remove a season, click the delete icon from the Seasonal Strategy pane.

Best Practices

Consider Alternatives to Make Loading Easier

If your Reservation SystemClosed The primary reservation system, like a PMS or CRS, that provides data to G3 RMS. The data from that one system is used by the RMS to forecast, optimize and produce controls. The controls are sent to all selling systems, which for some integrations may exclude the reservation system. allows it, G3 RMS imports the BAR levels and details. In that case, you only need to review the Rate Plans. If an import is not possible, you have an alternative to load the information using an Excel template, instead of the Rate Plan configuration menu. For more information, review the Mass BAR Configuration feature.

Use Historical Prices to Determine Your Highest and Lowest Price Points

Load the highest and lowest Rate Plans within a reasonable range of your highest and lowest historical prices, by season, and if significant patterns exist, by day of week. For example, if your historical range has been $100 to $200, do not load $70 to $250.

Use historical prices because G3 RMS learns price sensitivity for each BAR price point from past reservations. In the example of a historical range from $100 to $200, the system has learned the price sensitivity for these prices from past guest behavior. Because you have never sold rooms at $250, the system has not learned the price sensitivity for that price point yet. Until G3 RMS can learn from actual behavior, it assumes that the price sensitivity is the same as for the closest known price point, so $200 in this case.

If you used a BAR level in the past only for a handful of dates, for example, the highest BAR level during high-demand Special Events, do not make the level available to G3 RMS for the year. Use the Strategy tabs or create seasons for that BAR level. The reason is the same as why you should start with your historical prices, namely how the system learns price sensitivity. In this highest BAR example, if you load the highest BAR for the full year, G3 RMS likely will use it over other dates with less demand until it learns the true price sensitivity over non-peak demand dates.

If your property uses a Limited Data Build, you replace the missing historical data with projections. Ensure that the ADR in the projections aligns with the price range that you set up.

Test New BAR Levels in Small Increments

As a general rule, if you would not sell a BAR level in a manual environment, do not make it available for G3 RMS to select. G3 RMS can optimize the best price point to sell, but if it has price points available that were never sold in the past, the system does not have reliable data to calculate the price sensitivity for these price points.

The system learns quickly, so if you want to explore a lower or higher pricing strategy than in the past, do so in smaller increments. In the above example with a historical range of $100 to $200, do not immediately change the range to $100 to $250 or $70 to $200. Instead, start with $90 or $220, and let the system learn while you monitor the forecast and decisions. Then, if successful, expand the range further.

Use an Appropriate Number of BAR Levels

We recommend using a maximum of 20 BAR levels. Some hotels might require more than 20 price points overall, but you should accommodate those with seasonal differences, so that at any given point in time there are not more than 20 BAR levels.

If your pricing range is small, use fewer than 20 BAR levels. For example, if your pricing is between $50 to $95, you likely only used ten levels with $5 increments before you used G3 RMS and should continue to do so. There is very little revenue to gain by using minimal price increments like $2, and any benefits will likely be offset by customer confusion.

Define Room Type Differences and Seasons

Use the Rate Details tab to manage the prices and seasons for the Rate Plans. The prices should reflect the different values between room types, between Room Classes and between seasons. For example, you might set up a higher price for a Standard room with one King bed than for a smaller Standard room with one Twin bed, then set up a higher price for any room type of the higher ranked Suite Room Class than for Standard room types. You might then set up a higher price during your high-demand seasons, compared to low-demand periods.

If all room types of a Room Class have the same value, you can use the same price for all. But the rates between Room Classes must respect your Price Ranking setup. For example, your Suite Room Class (Order 2) is ranked higher than your Standard Room Class (Order 1). In that case your rates for all Suite room types have to be equal or higher than those for Standard room types.

Room Types Not Sold Publicly or That Rarely Sell

Do you have room types that you don't sell publicly or that rarely sell? If so, assign them to a Room Class with other room types of a similar value. The same applies to setting Up Rate Plans for such room types. If you instead consider a Room Class that contains only such room types, first review the options to set up special-use room types.

Set up Single Occupancy and Only Room Revenue

How you manage pricing for double occupancy, extra adults or children depends on your pricing method. Contact your IDeaS representative for more details. The below options also apply if you sell a breakfast-inclusive instead of room-only prices.

Add or Exclude Taxes Appropriately

Is your property in a country where booked prices have to include taxes (like VAT or GST)? If so, whether you load rates inclusive or exclusive of tax depends on how your Reservation SystemClosed The primary reservation system, like a PMS or CRS, that provides data to G3 RMS. The data from that one system is used by the RMS to forecast, optimize and produce controls. The controls are sent to all selling systems, which for some integrations may exclude the reservation system. sends the data to G3 RMS. With most systems, for example Opera, the data excludes taxes and that's how you load rates. But before you set up rate values, confirm whether your system sends data with or without tax. If you are unsure, contact your IDeaS representative.

Set up Values for the Entire Forecast Window

For the entire Forecast Window (usually 365 days), set up at least one BAR value for at least one room type in each Room Class. An incomplete BAR rate setup can cause problems for forecast calculations, group pricing evaluations, and decision processing, which negatively impact revenues. An Alert in the Information Manager warns you of this situation.

Consider Setting up a Strategy

Rate Plan or Room Class Strategy are optional steps to define availability of BAR levels. Use them to ensure that G3 RMS can choose only from appropriate price points. For example, you might want the lowest BAR to be available only as an override during your peak season.

The Rate Plan and Room Class Strategy tabs are not available if your Reservation SystemClosed The primary reservation system, like a PMS or CRS, that provides data to G3 RMS. The data from that one system is used by the RMS to forecast, optimize and produce controls. The controls are sent to all selling systems, which for some integrations may exclude the reservation system. doesn't support restricting the highest BAR.

You can apply a strategy either by Room Class or by Rate Plan. The choice depends on what level you want to restrict. For example, if you want to restrict the lowest BAR for one or more Room Classes to be available only as an override during your peak season, select the Rate Plan Strategy tab. To restrict one Room Class for one or more BAR levels, select Room Class Strategy.

No matter which price strategy option you apply, you can use restricted rate plans as pricing overrides. If an override is set that is in conflict with the price strategy setup, the system flags that day with a conflict icon . This applies to all but the User Override Only option. To make a rate plan completely unavailable, even for pricing overrides, set up a Seasonal Price Strategy by Rate Plan, and choose the "Close Rate Plan" option for the season.

For more details, review the steps and options for setting up a strategy.

Validate Against Your Price Ranking and Upgrade Paths

G3 RMS maintains the price ranking order defined in Price Ranking and Upgrade Path using the lowest priced room types. Thus, under certain conditions, the highest-priced room type of a lower ranked Room Class might be priced higher than the lowest room type of a higher ranked Room Class. This setting provides G3 RMS with some flexibility to price optimally, while considering the integrity of room type positioning and operational issues. At first glance, this setting might not be intuitive, but consider that a room type from a higher Room Class would only be priced close to, equal to, or lower than a room type of a lower one when there is very little or no demand for it.

If you use the Advanced Price Ranking and Upgrade Path option in Rooms Configuration, G3 RMS does not validate that your pricing is appropriate for the Room Class hierarchy. We recommend that you only use these advanced settings when they are required. See Advanced Price Ranking and Upgrade Path Overview for more information.

Be Careful When Deleting Rate Plans or Seasons

The Rate Plan that you wish to delete might have been used for future pricing decisions or price overrides. After you delete a Rate Plan, it is removed as the decision or the override for all relevant arrival dates. The Pricing Management Calendar displays a no pricing decision icon for those dates until new decisions are selected in the next optimization.

When you delete a season, the pricing decision is invalidated for all future dates in the season where this Rate Plan was used as the pricing decision. The Pricing Management Calendar displays a no pricing decision icon for these future dates. These pricing decisions update when the next optimization runs.