Rate Product Overview
Learning Objectives
At the end of this article you will know…
- What Rate Products are
- What options you have when setting up Rate Products
- When you would use a Rate Product or a package
- How do Rate Products work on bookings?
- How to build Rate Products
What is a Rate Product?
We understand that many customers need to bundle products to guest rooms on bookings. While we have packages for bundling events, guest rooms and products, there is a more simple use case that doesn't always require the use of packages.
Any Thynk Admin can create a Rate Product, which links a particular rate to a particular product. Any time a guest room is added a booking that references this rate (ex. Bed & Breakfast rate), the product (ex. Breakfast) is automatically added to the booking and linked to any subsequent changes on the guest room.
This means that if you add additional guest room nights, the appropriate amount of products will be added to correspond to how the Rate Product is defined.
In addition to the product and rate, the admin selects:
- Product Frequency - Once or Daily
- Applied Day - Arrival Date, Departure Date, Same Day or Next Day
- Product Amount - Per Room, Per Adult
- Quantity - number of products
- Price
- Amount (Use-case example, Breakfast)
- Percentage (Use-case example, City Tax %)
- You also have the option to set a Max Amount for the calculated tax.
An example: There's the BAR rate of $200, and there's a City Tax set at 8% with a maximum limit of $10. Since the City Tax would calculate to $16, which is above the maximum limit of $10, the final City Tax charged amount would remain at $10. If you choose not to set a max amount, the 8% will be calculated without any restrictions.
When would I use a Rate Product vs. a package?
The most common use case is adding breakfast, parking and other common room add ons to a room rate. With Rate Products, you can separate out the room rate revenue from the Rate Product add on revenue to see a clearer picture of your revenue breakdown.
A package, on the other hand, more commonly bundles events and products over the course of a single or multi-day group booking. Common examples are standard wedding packages, overnight meeting packages, and tour operator packages. A Rate Product should not be used for events of this sort that require function space and time assignment.
How do Rate Products work on bookings?
When a rate that contains Rate Products is added to a booking, the booking products are automatically attached. As guest room arrival and departure dates are adjusted, products will be created or deleted accordingly in line with the rules defined. All fields are editable on the booking product except for quantity, which is based on the guest room quantity.
How do I build a Rate Product?
Rate Products are built by admins only.
To build a Rate Product follow the steps below:
1. On the App Launcher, Search and Click on ‘Rates’
2. Find and select the Rate you would like to add a Rate Product to
3. Click on the Rate’s Related page
4. Scroll down to ‘Rate Products’ and click ‘New’
6. Type the name of your Rate Product. In this example we are creating "Tourism Tax 2% Daily Per Adult Same day"
7. Click on *Product, in this case I will select Tourism Tax
9. Click on Product Frequency
If you want to have a Rate Product of a percentage amount, you must select ‘Daily’. Otherwise, if you select ‘Once’ you can only have a set Price.
11. In this example we will add a Percentage Amount of ‘2%’.
Once an amount is entered, another field will appear, to apply the ‘Max Amount’
12. Max Amount - In this example, I have placed it for ‘5 euro’
The Max Amount field is only visible once a percentage amount is entered. This is not a mandatory field to fill out. It only serves as a limit for the percentage field mentioned above.
16. Click on *Applied Day, in this example we select ‘Same Day’
18. Click on *Product Amount, in this example we select ‘Per Adult’
19 If you aren't creating a Rate Product that is percentage based rate but a set amount. Click on Price excl. / incl. Tax and add the desired amount here
Important note, if you have added a ‘Percentage amount’ these fields Price incl. Tax, Price excl. Tax cannot be used. If you haven’t added a ‘Percentage amount’ you can to these fields accordingly.
22. Click on Save
Best Practices for Rate Products
- When adding the name of the rate product we suggest to include what the rate product is, how often it occurs, when it occurs and the amount. For example, City Tax (Daily) Next Day, 5%
- Review Rate Products to ensure they reflect current offerings and pricing structures. Update as needed to maintain accuracy.
- Inform your team members about any updates or changes made to Rate Products. This prevents misunderstandings or incorrect use of rates and their associated products.
Resources
- How to create a rate period
- How to use the Room Block Manager (Group Booking Feature)
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