Overview on Rate Products

Overview on Rate Products

Learning Objectives
At the end of this article you will know…
  1. Overview of Rate Products and Common Issues
  2. What options you have when setting up Rate Products
  3. When you would use a Rate Product or a package
  4. How do Rate Products work on bookings?
  5. What Rate Price gets sent back to your PMS?
  6. Admin Setup and Best Practices

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 Plan to a particular Product. Any time a Guest Room is added a Booking that references this Rate Plan (ex. Bed & Breakfast rate), the Product (ex. Breakfast) is automatically added to the Booking accordingly. The number of Booking Products (Rate Products) created depend on the Guest Room & Rate Product details.



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 Rate Plan. 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?

  1. When a Rate Plan that contains Rate Products is added to a Booking, Booking Products are automatically created and attached.
  2. If the Guest Room's arrival and departure dates are adjusted, Booking 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.
  3. If the Rate Plan is replaced with a different one, Booking Products related to the first Rate Plan will be deleted and new Booking Products get automatically added according to the new Rate Plan
  4. If the Rate Plan is removed, Booking Products related to the Rate Plan will be deleted

How do Rate Products work on the Room Block Manager?

From the Sales Managers perspective, adding a Rate Product involves using the Room Block Manager:
  • A user assigns a Rate Plan to a Room type, for example B&B which is a €110 room rate and includes breakfast.
  • If an additional Rate Product like City Tax is not included in the rate, it will not be visible in the Room Block Manager. However the Booking Product will exist.

Sales Managers typically deal only with the room rate inclusive of rate products, meaning the system handles the calculations. However, admins can see additional fields on the Nightly Rate records such as:

  • Room rate only (exclusive of rate products)
  • Total Add-ons total Rate Products that are not included in the room rate (e.g., city tax)
  • Total Inclusions total Rate Products that are included in the room rate (e.g., breakfast)
Alert
Note: Admins and users can only modify the field Room Rate Incl. / Excl. fields (Rate Price with Inclusive Rate Products) as all other fields, such as Total Add-ons and taxes, are automatically recalculated based on this field.

What Rate Price gets sent back to my PMS?

There is configuration per property to set up if the Rate Price sent back to your PMS should be the Room Rate only or if it should be the Room Rate with Included Rate Products. As a default we send the price with the Is Included Rate Products accordingly. However if you would like to change your configuration, please reach out to our customer support team. 


Key Features:

  1. Admins can create Rate Products without specifying the price, and the system will pull the price from the Parent Product record itself. This helps avoid guessing amounts and ensures consistency
  2. Admins can also create percentage-based rate products, like a Booker's fee. In such cases:
    1. The fee will be calculated based on the Room Rate only (e.g., 1% of €100 = €1).
    2. Admins can set a cap (Max Amount) on percentage-based products, ensuring they do not exceed a certain value.
  3. Another feature allows rate products to automatically become complimentary if the room rate is set to zero. For instance, if a guest gets a complimentary room, the breakfast could also be complimentary.
    1. Fixed Value Exception: For percentage-based rate products, admins can set a minimum value (e.g., €0.50), so even if the room is complimentary, a minimum charge still applies

Best Practices

  1. Always check with your Manager regarding your internal SOPs when creating / using Rate Products
  2. In Thynk our Best Practice is to ensure that your PMS is sending us the Rate Price with Rate Products. As it is most preferable to use the Rate Price with Is Included Rate Products for Sales Managers.
  3. Always verify if a rate product is included in the PMS rate before adding it.
  4. Use the new Room Block Manager to manage room rates efficiently 
  5. In Thynk ensure you are sending the right Rate Price back into your PMS
  6. In your PMS, set up that the Rate Product is either added on top or removed to the Price received accordingly.
  7. Admins can create Rate Products in Thynk. When setting up a Rate Product, it is essential to follow these best practices:
    1. Naming: Provide detailed names for rate products for clarity. For example, "Breakfast Daily per Person.
    2. Setup Options: Specify attributes such as frequency (e.g., daily), when it starts (e.g., the next day), and whether it’s charged per adult or per room


Resources

  1. How to create & set up Rate Products
  2. How to create a Rate Period
  3. How to use the Room Block Manager (Group Booking Feature

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