About manual and derived rates
When setting up a rate, choose to either:
Manually input daily rates — you will manage and update each rate individually.
Derive daily rates — rates automatically adjust based on another rate using a percentage or fixed amount. Derived rates can be configured at four different levels: rate plan, room rate, channel rate or direct rate.
Setting up derived rates can help save you time by automatically updating multiple rates when your base rate changes — perfect for seasonal adjustments or channel-specific pricing.
Manual rates
To set up a rate plan, room rate, channel rate or direct rate using manual rates, select Manually input daily rates under the Rate setup settings.
Update rates through the Inventory tab.
You can set a minimum rate in Property Settings to prevent rates being set too low.
Derived rates
To set up a rate plan, room rate, channel rate or direct rate using derived rates, select Derive daily rates under the Rate setup settings.
You can derive a rate by an:
Amount
Percentage
Amount and then percentage
Percentage and then amount
Whenever you update the prices for the standard rate, the derived rates will also adjust accordingly.
For example:
Set up a “Best available rate” as your base rate.
Create a “Non-refundable” rate at 10% less.
Add a “Breakfast included” rate at 20 more.
Common uses for derived rates:
Breakfast included — increase the rate by a specific amount for daily breakfast included.
Release period / advance purchase — discount the rate by a specific amount or percentage if your guests book a certain number of days in advance.
Non-refundable —discount the rate by a specific amount or percentage to secure a non-refundable rate.
Length-of-stay — discount the rate by a specific amount or percentage if your guests book a certain number of nights.
Room views — increase the rate by a specific amount or percentage for rooms with a view, for example an ocean view room would have a higher rate than the best available rate with a garden view.
Important notes:
You cannot directly update derived rates in the Inventory grid.
Use rate overrides for occasional exceptions. Consider switching to manual rates if you need frequent overrides.
You can set up derived rates in either your PMS or SiteMinder platform. Just remember to map your rates for reservation delivery.
If you set up derived rates in your SiteMinder platform, you will need to configure the rate setup to “Manual”, and not derived.
About derived rates at different levels
Rates can be derived at four levels:
Rate plan — (the highest level) will affect all room rates associated with the rate plan, including the rate plan’s channel rates and direct rates.
Room rate — you can override rate plan pricing for a room rate, if needed. This will also affect the associated channel rates and direct rates.
Channel rate — specific to rates on certain channels. Note: it’s recommended not to add an override for the rate plan or room rate as well as the channel rate, as this will result in the derivations being applied twice.
Direct rate — specific to direct bookings. Note: it’s recommended not to add an override for the rate plan or room rate as well as the direct rate, as this will result in the derivations being applied twice.
Note: you can override higher-level derivations at lower levels, however fewer overrides mean simpler pricing management.