Inflation Adjustment is a feature designed to ensure that base prices are regularly updated to reflect inflation over time. Without it, base prices may remain static from year to year, potentially reducing revenue in real terms.
How It Works
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Default inflation rate: The system auto-populates a 5% annual inflation rate, but you can set your own rate.
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Automatic adjustments:
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The inflation rate automatically updates the Base Rate configured in Room Setup.
Example: If in November 2023 your base rate for November 2024 is set at 100 and inflation is 5%, the base rate for 2025 will automatically adjust to 105.
- When enabled, the base rate increases by approximately 0.4% per month.
Example: If your base rate is 100, it will become 100.4 next month, and prices for one year ahead will be calculated based on a base rate of 105.
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Manual control: If you prefer to set your own base prices manually, you can turn off the Inflation feature.
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In the calendar: When viewing future months, you will see the Base Rate adjusted for inflation, marked as "adj. for inflation".
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Example: If the standard base rate is €1,440, with a 0.4% inflation adjustment, it will show as €1,446
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Note: Inflation adjustments are not shown in “Adjustments” because they directly change the base rate.
How to Set Up or Edit Inflation
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In your RoomPriceGenie account, go to Pricing Strategy
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Click on Room Setup.
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Select the reference room (first room in the list).
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Scroll down to the inflation section where you can:
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Adjust the inflation percentage.
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Set the inflation rate to 0 to disable it.
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Click Save.
FAQ
Q: My base price is increasing automatically. What should I do?
A: This is likely due to the Inflation feature. If you want a static base rate and don’t want the system to adjust for inflation:
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Go to Pricing Strategy > Room Setup.
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Select the reference room.
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Scroll to the Inflation section.
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Either reduce the inflation percentage or set it to 0.
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Save your changes.