Create Reservations with Hurdle Rates Applied
Hurdle rates or the Last Room Value (LRV) refers to a threshold rate configured by the property for a room type wherein, when a user performs a rate query, the room type will be displayed only when the nightly room rate configured for the room type is greater than the configured hurdle rate. If the nightly room rate is less than the configured hurdle rate, the room type will not be displayed.
Properties can configure hurdle rates for the available room types to optimize the availability of rooms when booking reservations.
Display Room Type in Book a Reservation Screen
Once the hurdle rates are configured for the room types and users select the arrival and departure dates for a reservation in the Book a Reservation screen, the sum of the nightly room rates of the room types are compared with the sum of the hurdle rates for the selected date range.
When the sum of the nightly room rates of a room type associated with a rate plan is lesser than the sum of the hurdle rates (LRV):
-
View By - Room Type: The room type will not be displayed in the Book a Reservation screen for booking.
-
View By - Rate Plan: The room type will not be displayed under the associated rate plan for booking. The room type will be displayed only for the rate plan for which the nightly room rate is greater than the hurdle rate.
The nightly room rate is calculated based on the rate configured for the room types in the rate plans. When the nightly room rate is overridden in the Daily Rates screen or when yielding rules are configured for the room type, the rule is applied, and the final rate calculated is considered for the comparison.
Sample Scenario
Consider a reservation to be booked from March 13, 2024, to March 16, 2024 for the King room type. The following table lists the nightly room rates and the hurdle rates configured for the duration of stay.
|
Date |
Nightly Room Rate |
Hurdle Rate |
|---|---|---|
|
March 13 |
$100 |
$200 |
|
March 14 |
$120 |
$200 |
|
March 15 |
$110 |
$200 |
In this scenario, since the sum of the nightly room rate ($100+$120+$110 = $330) is lesser than the sum of the hurdle rates ($200+$200+$200 = $600), the King room type will not be available for booking reservations.
When hurdle rates are not configured for each date in the selected date range, the dates for which hurdle rates are not configured are considered as $0. For example, when a user creates a reservation for 5 days and if the hurdle rate is configured as $100 only for the first 3 days, the sum of the hurdle rates is calculated as follows: $100+$100+$100+$0+$0 = $300.
The room types with nightly room rates lesser than the hurdle rates are displayed when users select the Include unavailable rates checkbox. The nightly room rates are highlighted in red and when users hover over the information icon, the label, Rate lesser than hurdle rate, is displayed. Users cannot proceed to book reservations using the room types.
However, when users modify the nightly room rates of the room types in the Book a Reservation screen, the modified rates are compared and when the sum of the modified room rates is greater than the sum of the hurdle rates, reservations can be booked using the room type.
When the nightly room rate of a room type that was previously available for booking is modified to a value lesser than the hurdle rate, users can continue to book reservations using the room type.
Feature Configuration
Enable the Hurdles feature setting.
Navigate to Settings ➜ Rates ➜ Hurdles.
Select the date range for which the hurdle rates must be configured from the Range date pickers. The following dates can be selected in the date pickers.
|
Date picker |
Description |
|---|---|
|
Start date |
The current property date is selected by default. The dates prior to the current property date cannot be selected. Future dates can be selected. |
|
End date |
By default, the date that is 32 days after the start date. The dates prior to the current property date cannot be selected. Users can select any date that is a maximum of 365 days from the start date. |
Click the Set Hurdles button. The Set Hurdles pop-up screen appears.
Refer to the following table and enter the values for the fields.
|
Field |
Description |
|---|---|
|
Start |
The start date from when the hurdle rate must be applied. The current property date is selected by default. Past dates cannot be selected. |
|
End |
The end date until when the hurdle rate must be applied. By default, the end date selected in the Range date picker is displayed. The dates prior to the current property date cannot be selected. |
|
Days |
The number of days in the selected date range. When the value is modified, the date range will be updated accordingly. |
|
Days |
The days of the week in the selected date range for which the hurdle rate must be applied. |
|
Room Types |
The room types for which the hurdle rate must be applied. Users can select multiple room types for which the hurdle rate must be applied. |
|
Room type X Room type Y |
Based on the room types selected, users can configure the hurdle rate for each room type. |
Click Apply. The configured hurdle rate will be applied to the selected room types.
To configure different hurdle rates for individual dates, users must first select the date for the preferred room type and click the Set Hurdles option.
The hurdle rates configured for the selected room types and dates are displayed in the Hurdles screen. Users can select the date range for which the hurdle rates must be displayed from the Range date pickers. Users cannot view the hurdle rates configured for the dates prior to the current property date.
Navigate to Settings ➜ Rates ➜ Rate Plans and select the rate plans with which the room types with hurdle rates configured are associated.
Turn on the Enable Yielding Rules and Hurdles flag in the Details section of the rate plans for the hurdle rates to be applied to the room types.