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Location: App – Properties – Revenue Management – Rate Maps

Setup – Properties – Revenue Management – Rate Maps

Required Setup: In order to access this page, your company must subscribe to Kigo Revenue Management in the App Store. Additionally, you must be assigned the General Manager role, or a custom role that includes General Manager permissions.

About the Rate Maps Page

From here, you can view available rate maps, make changes to existing rate maps, and create new rate maps using a variety of templates.

Rate maps are a highly configurable matrix, that allow you to specify when Kigo Revenue Management will modify rates and by how much. You control when rates are modified based on two criteria:

  • Time: One determining factor is the number of days before the prospective booking.
  • Occupancy: The occupancy percentage for all of the properties in the property group is also a determining factor.

These two criteria are used together to create a rate map. For example, if a property group is less than 70% booked at 5 days out, you may wish to slightly reduce the quoted rate, in order to increase occupancy. Alternately, if a property is 70% booked at 150 days out, you may want to increase the quoted rates, to take advantage of the increased demand. You can configure rate maps to perform both of these tasks.

Each cell on the rate map contains a specific rate multiplier that coincides with the days out and percentage requirements. The rate multiplier indicates how much a rate can be modified.
The rate map pricing matrix

For example, let's say that a property has a nightly rate of $100. A rate multiplier of 1 indicates that the rate will not be changed at all ($100 x 1 = $100). A rate multiplier of .75 indicates that Kigo Revenue Management can alter the rate to 75% of the standard rate ($100 x .75 = $75). A rate indicator of 1.25 indicates that Kigo Revenue Management can alter the rate of the unit to 125% of the standard rate ($100 x 1.25 = $125). This allows you a great deal of flexibility on controlling rates.

You can select from one of the pre-designed templates and use it as-is, or as a base to start customizing your own template.

Some common actions that can be performed here include:

  • Adding a New Rate Map
  • Modifying an Existing Rate Map
  • Deleting an Existing Rate Map

Fields

Rate Maps List

ID: This is the unique identifier for this rate map.

Name: This is the name of the rate map.

Properties: This is the number of properties that currently use the rate map. Click this number to view the Properties page, filtered to only display properties that use this rate map.

Adding a New Rate Map

  1. From the Rate Maps page, click Add.
  2. At the Add Rate Map page, enter a unique and descriptive Name for the rate map.
  3. Click Save. The new rate map is saved, and you are returned to the Rate Maps page. The new rate map is displayed in the list.
  4. To customize the new rate map, locate it in the Rate Maps List, and click the rate map name.
  5. Select a base template from the Select a Template drop-down list. Each rate map template is described below:
    • Flatten: This rate map template does not change rates at all. Each base rate (displayed on the Edit Rate Map page) is set at 1, meaning that the rate does not change.
    • Large Homes (Aggressive): This rate map template is optimized at 30% occupancy at 180 days out and 80% occupancy at 75 days. The rate can change up to -50% and +40%.
    • Large Homes (Starter): This rate map template is optimized at 30% occupancy at 180 days out and 80% occupancy at 75 days. The rate can change up to -25% and +20%.
    • Medium Houses (Aggressive): This rate map template is optimized at 30% occupancy at 90 days out and 80% occupancy at 45 days out. The rate can change up to -50% and +50%
    • Medium Houses (Starter): This rate map template is optimized at 30% occupancy at 90 days out and 80% occupancy at 45 days out. The rate can change up to -25% and +25%.
    • Small Units (Aggressive): This rate map template is optimized at 30% occupancy at 90 days and 80% occupancy at 10 days. The rate can change up to -40% and +70%.
    • Small Units (Starter): This rate map template is optimized at 30% occupancy at 90 days out, and 80% occupancy at 45 days out. The rate can change up to -25% and +35%.
  6. Once you've selected a template, click Apply.
  7. You receive a confirmation message stating that applying the template will remove any existing rate map information. Click OK to continue.
  8. To customize the rate map, click Advanced Mode. The rate map is displayed.
  9. You can modify any cell in the rate map.
    • The number in the cell is a rate multiplier, so values less than 1.0 will discount the rate. This is useful in instances where you do not believe that you will be able to book all of the properties. For example, if you are less than 10 days out, and only have a 30% occupancy, you may want to consider discounting the rate. Booking a property at a discount produces more revenue than leaving a property unsold at the normal rate. So, if you want to discount the property by 20%, you would enter .8 as the rate multiplier, which means that the property could be booked for 80% of the normal rate.
    • If you enter 1 as the rate multiplier, the rate will remain unchanged.
    • Values more than 1.0 will increase the rate. This is useful in situations where you expect to be completely booked, and want to increase revenue. For example, if an event is occurring in 180 days, and your property is already at 60 % occupancy, you may choose to raise the rate by 35%. In this case, you would enter a rate multiplier of 1.35.
  10. When finished making modifications to the rate map, click Save. To discard your changes, click Cancel.

Modifying an Existing Rate Map

  1. From the Rate Maps page, locate the rate map that you want to make changes to, and click to select it.
  2. If you want to overwrite the existing rate map with a template, select a base template from the Select a Template drop-down list. Each rate map template is described below:
    • Flatten: This rate map template does not change rates at all. Each base rate (displayed on the Edit Rate Map page) is set at 1, meaning that the rate does not change.
    • Large Homes (Aggressive): This rate map template is optimized at 30% occupancy at 180 days out and 80% occupancy at 75 days. The rate can change up to -50% and +40%.
    • Large Homes (Starter): This rate map template is optimized at 30% occupancy at 180 days out and 80% occupancy at 75 days. The rate can change up to -25% and +20%.
    • Medium Houses (Aggressive): This rate map template is optimized at 30% occupancy at 90 days out and 80% occupancy at 45 days out. The rate can change up to -50% and +50%
    • Medium Houses (Starter): This rate map template is optimized at 30% occupancy at 90 days out and 80% occupancy at 45 days out. The rate can change up to -25% and +25%.
    • Small Units (Aggressive): This rate map template is optimized at 30% occupancy at 90 days and 80% occupancy at 10 days. The rate can change up to -40% and +70%.
    • Small Units (Starter): This rate map template is optimized at 30% occupancy at 90 days out, and 80% occupancy at 45 days out. The rate can change up to -25% and +35%.
  3. Once you've selected a template, click Apply.
  4. You receive a confirmation message stating that applying the template will remove any existing rate map information. Click OK to continue.
  5. To customize the rate map, click Advanced Mode. The rate map is displayed.
  6. You can modify any cell in the rate map.
    • The number in the cell is a rate multiplier, so values less than 1.0 will discount the rate. This is useful in instances where you do not believe that you will be able to book all of the properties. For example, if you are less than 10 days out, and only have a 30% occupancy, you may want to consider discounting the rate. Booking a property at a discount produces more revenue than leaving a property unsold at the normal rate. So, if you want to discount the property by 20%, you would enter .8 as the rate multiplier, which means that the property could be booked for 80% of the normal rate.
    • If you enter 1 as the rate multiplier, the rate will remain unchanged. The rate will remain the same as what has been entered in Kigo on the Rates & Availability page, or the base rate entered in Kigo Revenue Management.
    • Values more than 1.0 will increase the rate. This is useful in situations where you expect to be completely booked, and want to increase revenue. For example, if an event is occurring in 180 days, and your property is already at 60 % occupancy, you may choose to raise the rate by 35%. In this case, you would enter a rate multiplier of 1.35.
  7. When finished making modifications to the rate map, click Save. To discard your changes, click Cancel.

Deleting an Existing Rate Map

You can only delete a rate map if there are no property groups currently using the rate map. If you want to delete a rate map that currently has property groups assigned, you must move the property groups to another rate map first. You can perform this action at the Property Groups page.

  1. From the Rate Maps page, locate the rate map that you want to remove, and click to select it.
  2. Click Edit.
  3. Click Delete.
  4. Click OK to confirm the deletion, or click Cancel to discard your changes without deleting the rate map.
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