{"id":22516,"date":"2020-04-08T09:21:13","date_gmt":"2020-04-08T09:21:13","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/derived-rates\/"},"modified":"2024-12-23T09:22:05","modified_gmt":"2024-12-23T09:22:05","slug":"derived-rates","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/derived-rates","title":{"rendered":"Derived Rates"},"content":{"rendered":"

What is the meaning \/ definition of Derived Rates\u00a0in the hospitality industry<\/a>?<\/p>\n

A rate that allows owners, managers and\/or revenue managers to update the hotels rate(s) by adding or subtracting a total sum or percentage from the base rate, rather than adjusting the rate each time it needs to be adjusted. For example, if a hotel<\/a> wants to include a special breakfast rate to their rack rate<\/a>, they would add a derived rate of \u00a315 on top of their rack rate. This rate would then only be sold and used by a guest if they request to include breakfast in their room price, other than that, the rack rate would not change.<\/p>\n

Besides the convenience of adjusting the price of rates, this is done so that discounts or special rates can be applied easily when a new coupon, package or rate is introduced. Through this rate, hotels have the option to control and set the max or minimum amount a discount is given out by staff and managers in rooms and\/or outlets. For example, a hotel owner may set the maximum discount for their hotels restaurant at 50% if a guest complains about their food. This is done so that the discount total is not decided by individual manger or employee on duty.<\/p>\n

In property<\/a> management systems, there is always an option to add Derived Rates to a current rate. The mechanics of doing this depends on the type and company of the PMS<\/a>.<\/p>\n

See Also:<\/strong><\/p>\n