Channel rate derivations are useful when you want to manage the price of your rates depending on the different channels they are connected to. In this article, you will learn what channel rate derivations are and how to apply them.
What is a channel rate derivation?
When you map one of your rates to a channel, this creates a channel rate.
When a new channel rate is created, it is automatically derived from its room rate to have the same pricing.
However, you can derive the price of this channel rate to make it cheaper or more expensive than its rate.
➕ For example:
Let’s say the current price you have set in your inventory for your double room bed and breakfast is 100 euros.
You want to map this rate to one of your connected channels (let’s call it Channel A).
Once you map your double room bed and breakfast to Channel A, the system will send 100 to this channel rate.
💡You can only derive rates that have been already mapped. Learn more: Map rate plan to channel.
When may I need to derive a channel rate?
You might want to advertise one of your rates at a different price for a particular channel.
➕ For example:
Let’s say you advertise your double room bed and breakfast for 100 euros in all your three connected channels:
Double room bed and breakfast - Channel A is advertised at 100
Double room bed and breakfast - Channel B is advertised at 100
Double room bed and breakfast - Channel C is advertised at 100
Suppose you want your double bed and breakfast - Channel A channel rate to be 110 euros, this can be done by deriving your double bed and breakfast - Channel A channel rate to be 10% more expensive than its general room rate "double bed and breakfast".
A channel rate derivation affects all future dates. However, you can apply a derivation for just a specific date range.
How do I derive a channel rate?
To change the rate derivation of an existing channel rate:
Go to My apps > Channel manager.
Go to the Channels tab.
Click on the channel’s name for which you want to add/change a channel rate derivation.
Click on the channel rate name (third column).
Click on Configure from the drop-down menu. A pop-up window will open on the Channel settings tab.
Go to the Rate config. tab.
Change the derivation settings and click on Save afterwards. You can find two scenarios: your channel rate is already derived or your channel rate is set to manual.
See both below:
A. If your channel rate is already derived
You can Adjust daily rates by:
Keep rates the same (default option): channel rate keeps the same price as its room rate
Percentage
Amount
Amount and then percentage
Percentage and then amount
Then select the value adjustment: Increase or Decrease, and add the number in the field right beside.
💡 Channel rates can only be derived from their own room rates. See the example below:
Suppose you have a single room bed and breakfast room rate.
You have mapped this room rate to Channel A, so you now have a channel rate: single bed and breakfast - Channel A.
You can make your single bed and breakfast - Channel A channel rate 5% more expensive than your single room bed and breakfast room rate.
But you cannot make your single bed and breakfast - Channel A channel rate 5% more expensive than your double room bed and breakfast.
⚠️ You cannot derive a channel rate with a different room rate.
B. If your channel rate is set to manual
Click on Manually input daily rates and select instead Derive rates from [name of the room rate] from the drop-down menu and select an option for Adjust daily rates by field.
⚠️ Even if you leave a channel rate set to manual, you cannot control the channel rate prices independently since they will always take your inventory’s price by default.
Once saved, your channel rates will be adjusted with the derivation value. The price changes are also reflected in the inventory grid of your channel manager.
💡There are additional resources about the Add rate override button you see on the Rate configuration tab.