Room Class

Use this tab to group room types with similar demand and pricing into a Room Class. A Room Class is a grouping of room types with similar demand and pricing. Room Classes and Forecast Groups are two key elements in G3 RMS forecasts and decisions:

Note: only overbooking is optimized at the room type and property level.

What Help Do You Need with Defining Room Classes?

Creating Room Classes - Video

Setup Steps

Creating Room Classes During Initial Implementation

G3 RMS imports the room type information from 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.. Then, using your property's historical pricing, the system creates one or more Room Classes and assigns the room types into the Room Classes. You need to review and, if needed, update the setup to ensure that it meets your property's needs. Read the Best Practices before your review. If G3 RMS doesn't have enough historical data, you complete the setup steps.

  1. Click , then Inventory, and then Rooms Configuration.
    If you visit this page often, click next to the name to add it to the Quick Access menu.
  2. The introduction page informs you that each time you work with Rooms setup, you must complete or review every step.
  3. Click Next. The Room Class step displays. The Unassigned Room Type pane displays room types that are not yet assigned to a Room Class.
  4. If needed, click edit to change the name or description of a room type. This is informational only, G3 RMS uses the room type Code when uploading to your selling system.
  5. If G3 RMS created the Room Classes, click to change their names.
  6. Click to add a new Room Class. The Add Room Class window opens.
  7. Enter the Room Class Name. If you upload decisions to Opera PMS, the Room Class names must be in capital letters.
  8. Enter an optional Room Class Description.
  9. Click Apply. The new Room Class displays on the top of the right pane.
  10. If needed, use the search field above the Unassigned Room Types to filter for the appropriate room types.
  11. To assign a room type, click and drag it to the outlined area of the appropriate Room Class box.
  12. Repeat the steps above to create all necessary Room Classes.
  13. Continue selecting and dragging room types into the appropriate Room Classes. Each room type can be assigned only to a single Room Class.
  14. Select one Room Class as the Master ClassClosed The Room Class for which a value displays if there is only space to show one. For example, the price on the Summary tab of the Business Analysis Dashboard.. For more information, review Master Class.
  15. If your property is using Per Person Pricing, complete the steps to add the Maximum Occupants per Room for every room type.
  16. After you have assigned all room types to Room Classes, click Save.
  17. Click Next. Continue to complete all the steps in Rooms setup.

Changing Room Classes After Initial Implementation

Changing Room Classes when G3 RMS is in Decision Delivery ModeClosed A processing status in which G3 RMS is producing forecasts and decisions, and sending them to the selling system., has a larger impact than during the initial setup. Follow this process to avoid issues like processing disruption, occupancy discrepancies or, in the worst case, a costly and time-consuming rebuild of G3 RMS. See Be Careful When You Change Room Classes below.

  1. Ensure that your changes follow the best practices.
  2. Complete steps 1 to 8 in the Restricted Inventory topic. These steps ensure that IDeaS support teams analyze the impact of the changes and that G3 RMS can cope with them. In some cases the IDeaS team might suggest additional steps.
  3. Only after IDeaS gives you the green light, continue with the next step and make changes in your reservation system.
  4. Make the necessary changes in your reservation system that provides the data to G3 RMS (typically your PMS or CRS). Only follow the steps that apply to you. For example, if you move only existing room types, skip the steps about new room types.
    1. Create the new room type.
    2. Move all in-house and future reservations from the old to the new room type.
    3. Confirm that you have zero capacity against the old room type.
  5. After the next Business Day End processing, check the following in G3 RMS:
    1. In Rooms setup, the old room type shows a capacity of 0.
    2. In the Business Insights dashboard, future rooms are sold against the new room type, and none are sold against the old room type.
    3. Resolve the Unassigned Room Type Alert for the new room type by moving it into a Room Class.
      If you assign it to an existing Room Class, click the Add the new room type to pricing products link. Then, add the new room type to Linked or Independent products (see product Definition) and define in the Room Type setup if it's available in a group evaluation. If you assign the room type to a new Room Class, ignore the link.
  6. In your reservation system, set the old room type to Inactive.
  7. Resolve the Discontinued Room Type Alert for deleted, deactivated, or renamed room types. The steps in the Alert tell you if you need to change your Room Class setup as a result of the changed room type. If you receive this Alert, you will see a message on the Room Class page: The Alert "Discontinued Room Types in hotel data" is unresolved. View deleted or deactivated room types by selecting the Include Discontinued Room Types checkbox. Follow one of these guidelines, depending on the circumstances:
    1. Discontinued Room Type with No Equivalent: For example, you removed the room type completely or it underwent a renovation with major changes. If the room type was not replaced with a new room type, leave the room type in the Room Class to which it was assigned.
    2. Discontinued Room Type with a New Equivalent: For example, you renamed the room type or its capacity moved to another room type. Assign the discontinued room type to a Room Class with its new equivalent room type. For data continuity, the system continues using the discontinued room type's historical data.
  8. Make the Room Class changes, as needed:
    • Click the edit icon for a room type or Room Class to change the name and description.
    • Click the add icon to add a new Room Class.
    • Click the remove icon to move a room type from a Room Class back to the Unassigned Room Type pane.
    • Select the Include Discontinued Room Types to display room types that you deactivated if you need to assign them to the Room Class with an equivalent room type.
    • Select and drag room types from the Unassigned Room Type pane or from an existing Room Class to a new Room Class.
    • Select a new Master Class.
    • Click the delete icon to delete a Room Class. When you delete a Room Class, its room types move to the Unassigned Room Type pane. (Note: You can't delete a Room Class that is set up as the Base Room Class in Inventory Groups.)

    Note: if you rename room types and make Room Class changes, first save your Room Class changes, then rename your room types.

  9. After you save your changes, G3 RMS displays a Room Class Configuration Change notice if your changes impact the system's forecast and decisions. This notice displays the recommended actions to ensure proper system functioning.
  10. After you finish the Room Class setup complete all remaining steps in Rooms setup so that the related and dependent setups are correct. If your changes impact your pricing setup, a warning message directs you there. For example, setting the pricing values for a new room type.
  11. If still valid, re-enter any future overrides that G3 RMS removed. Use the override reports (step 9).
  12. You might need to change setup for your Selling SystemsClosed Any distribution system, like a PMS, CRS or a Channel Manager, that is used to sell your transient guest room inventory. Ideally, G3 RMS sends all controls to your selling systems, but this may vary based on their capabilities. For some integrations, the selling systems may not include the reservation system that provides with data. as well. For example, if you use Opera, a new Room Class in G3 RMS requires a matching Yield Category for successful decision upload. Or, a new Room Type in G3 RMS requires Vendor Integration Mapping for Siteminder decision upload. Discuss this with the IDeaS team through the case.

Best Practices

Group Room Types with Similar Demand

Group room types with similar demand and pricing into a Room Class, while considering the effort of monitoring. See the Creating Room Classes video for examples.

G3 RMS assumes that demand is transferable between room types of the same Room Class. Therefore, combine room types with similar prices into one Room Class only if you can easily transfer from one to the other and upgrade to the next Room Class.

To explain, let's look at some examples.

Example 1: Demand for the 2 Doubles is low, mostly single occupancy

In this example, you have two room types, one with 1 King, the other with 2 Doubles, both priced similarly.

You can move reservations for the King room type to the 2 Doubles with little or no resistance. There is high demand from families on weekends that you can't transfer to the King, but if that demand exceeds capacity, you can accommodate guests in the next higher Room Class without issues.

Recommendation: Assign both room types into one Room Class if they are similarly priced. If necessary, restrict overbooking for 2 Doubles on weekends.

Example 2: Demand for the 2 Doubles is high, mostly triple occupancy or more

This example uses the same two room types as above, one with 1 King, the other with 2 Doubles, both priced similarly.

The demand for Kings is mostly for double occupancy from couples. You can't move either demand to the other room type without complaints. The next higher Room Class can accommodate only 2 guests, and you need to upgrade excess demand for 3 or more guests to the third highest Room Class.

Recommendation: Separate the room types into two Room Classes, each with its own upgrade path, see Scenario 4 in Advanced Price Ranking and Upgrade Path. Note that separate Room Classes is the right choice regardless of the number of guests, if you want G3 RMS to be able to price the 2 Doubles much higher than the Kings based on demand.

Example 3: Room Types with Different Characteristics

The same concept of transferable demand applies to other characteristics, like differences in smoking preference, view or accessibility.

For example, for a city property, guests might perceive a Deluxe room type that is considerably larger than the Standard room type as more valuable. If so, put the Deluxe room type into a separate Room Class. The size difference likely matters much less to guests in a suburban or rural property. If so, put both Standard and Deluxe room types in one Room Class.

Guests at a resort might perceive a room type with a view of the parking lot as inferior to a smaller ocean-view room type. That means you can't upgrade from an ocean-view room type to a larger parking lot-view room type. In this case, put the similarly sized room types with different views into separate Room Classes.

Example 4: Negotiated Contracts

Your ability to transfer demand between room types can also be impacted by negotiated accounts.

Let's say you have several accounts with a rate negotiated for the Standard Queen room type. Other room types in the same Standard Room Class are not available for the accounts to book. When G3 RMS sees more demand from that market segment than the available capacity of the Standard Queen, it assumes the demand is transferable to the other Standard room types. In reality, bookings from the accounts stop when there are no more Standard Queens left to book. In this case, create a separate Room Class for the Standard Queen room Type.

Group Similarly Priced Room Types

Combine two room types with similar demand into one Room Class only when the ADR difference between them is less than 20%. Otherwise, you negatively impact the system's ability to optimize pricing and LRV and to forecast ADR for the Room Class.

To assist you with grouping similarly priced room types, G3 RMS displays the ADR for each room type from the past year in Rooms setup. The ADR updates during each Business Day End Processing. If the data is provided by your reservation system (usually PMS or CRS), the ADR refers to booked, not stayed. Booked means that G3 RMS ignores if the reservation is upgraded from the initially booked room type. If you don't know whether G3 RMS is using booked or stayed data, click Important Information in the top right corner and look for Data Used for Forecasting and Optimization.

Let's look at two examples.

Example 1: Two Suites with Significantly Different Pricing

You combine two suites into one Room Class. The ADR for room type Suite A is 1000, for Suite B 5000. You set up a pricing difference of 4000 between them. For room types with such different pricing and ADR, how can G3 RMS know the Value of Demand for this Room Class and find one optimal price? With the price difference that is set up, the room types are either priced too high or too low. Same for the ADR forecast. In this case, the suites should not be in the same Room Class.

Example 2: Controlling the Price Differences Between Room Types

What if you want control over the price differences between room types? Let's say you have two room types that have the same size but vary greatly in guest perception: one with a highly-priced ocean view, the other with an undesirable parking lot view. Both can be upgraded to the next higher Room Class.

One option is to put both into one Room Class and set up pricing so that ocean view is always more expensive. In this scenario, the hotel controls the price difference between ocean view and city view.

You could also put them in two different Room Classes and let G3 RMS price them independently. Here, the system decides on the price difference between the two Room Classes, based on demand and willingness to pay. With this setup, you can still ensure that ocean views are always priced higher than city views

From a revenue maximization perspective, the second option is likely the better one. However, you might select the first option to ensure pricing clarity for guests and to protect brand image. For example, what if G3 RMS chooses a much lower pricing for city view than ocean view? Does that make the city view rooms appear significantly inferior? If so, you might want to avoid the second option.

Keep Low Capacity Room Types in Their Own Room Class

What if you have a room type that is priced and perceived very differently from other Room Classes, but that contains only 5 rooms or less. This can apply to Signature Suites or a single room like a Presidential Suite. 

Generally, we recommend that you keep such a room type in its own Room Class, due to the price difference. If you plan to set up such a low capacity Room Class, contact your IDeaS representative.

Expect higher forecast fluctuation in this Room Class because a Room Class with low capacity has very little booking data at that level. G3 RMS can deal with such situations, but it results in higher uncertainty. That means higher forecast fluctuations compared to forecasts for a Room Class with large amounts of booking data. For example, one unexpected booking of a Standard room type rarely ever causes a change to the forecast of the Standard Room Class. But one unexpected booking of the Presidential Suite (in its own Room Class) likely causes changes to the forecast, especially the revenue forecast.

Consider the Effort of Monitoring

The more Room Classes, the more forecasting levels you need to monitor. For example, if you have 10 Forecast Groups and 10 Room Classes, you have 100 forecasting levels, one for each combination. G3 RMS can easily forecast, optimize, and produce controls at that many levels. But it might be cumbersome for you to review and, if necessary, override the forecast and decisions at that many levels.

Manage Zero Capacity Room Types

Under certain circumstances, G3 RMS receives a room type with a capacity of zero. Follow one of these guidelines, depending on the circumstance:

  • Discontinued Room Type with a New Equivalent: For example, you renamed the room type or its capacity moved to another room type. Assign the discontinued room type to its new equivalent room type.
  • Discontinued Room Type with No Equivalent: For example, you removed the room type completely or it changed after a renovation. Without a matching Room Class there is no benefit to assigning it. In the unassigned zero capacity room type Alert, select Keep the new room type unassigned so that G3 RMS excludes it from forecasting and optimization.
  • Component Room Type: If you are using the Component Rooms module, assign the room type to a Room Class if it represents a Component Room Type. See Select Component Rooms.
  • Pseudo Room Type: Pseudo room types typically do not appear in Rooms setup. If they do, leave them unassigned. If you assign them to a Room Class, G3 RMS might get the wrong impression of the value of demand for that Room Class.

After you assign a room type to a Room Class, it must remain in a Room Class. All Room Classes must have a capacity of at least one room. You can't assign all zero capacity room types to a separate Room Class.

Manage Room Types That You Don't Sell Publicly or That Rarely Sell

There are two examples for this: 

If you have either of these room types, assign them to a Room Class with other room types of a similar value. The same applies to setting up Rate Plansfor 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.

Be Careful When You Change Room Classes

You might need to change Room Classes after the initial setup. For example, a renovation moves a room type from one Room Class to another or the capacity changes for room types. Such changes impact G3 RMS. And when the system is in Decision Delivery ModeClosed A processing status in which G3 RMS is producing forecasts and decisions, and sending them to the selling system., the impact is larger than in the initial setup.

Follow these steps to avoid issues like processing disruption, occupancy discrepancies or, in the worst case, a costly and time-consuming rebuild of G3 RMS. Due to the severity of the impact, we suggest in many cases that you stop automatic decision upload until you have reviewed the revised forecast and decisions.

Impact of Room Class changes on Forecasts and Decisions

Most changes to Room Classes impact forecasts and decisions, and G3 RMS needs to re-synchronize data. In that case, you see the Sync flag icon in the menu bar. The impact depends on the type of change:

  • New room types: Since G3 RMS has no historical data for a new room type, the system needs to begin learning about patterns like seasonality. Therefore, closely monitor forecasts and decisions for Room Classes with new room types until G3 RMS learns the new patterns.
  • Moved room types: When you move an existing room type to a different Room Class, G3 RMS has historical data to create new, changed forecasts and decisions for the impacted Room Classes. The magnitude of changes depends on the affected room type’s capacity and its impact on the old and new Room Classes. As a guideline, if the inventory shift between Room Classes is 15% or more of the total hotel capacity, the system's forecast and decisions might change significantly.