Default Minimum and Maximum Prices

This article helps the user set up and manage the default minimum and maximum prices within the Rooms Setup tab in RoomPriceGenie.

Why is setting your Maximum/Minimum Prices important?

Control

We want you to have full control. In setting your individual minimum and maximum prices, you are giving us the range within which we can calculate our pricing suggestions. The system will not go below or above your set limitations and this way we can make sure you feel comfortable with the prices we give you.

Psychological Reasons

If you allow the prices to go too low, your guests will consider this as your reference price. As a result, it will be harder to charge normal prices again later on. If you’re charging very high prices, even if you can because of high demand, people tend to be less happy or consider the prices as unfair. In a worst-case scenario, they may even leave bad reviews. If you want to learn more about the psychology behind price levels, you’ll find more detailed explanations in our blog article. You have more control over your pricing strategy. 

Variable Cost

First of all, the variable costs are the extra costs associated with having a client in the room rather than having an empty room. They take into account what it costs you to clean or maintain a room, the cost of breakfast, utilities etc.  Also, they should include any OTA commissions you are paying. 

You may wonder why we ask for your variable costs. Our system always aims to optimise for profit, not only for increasing revenue. And thus, when optimising your revenue, we want to make sure that these costs are taken into account and that you make enough profit on each room sold. In some cases, it makes more sense to sell fewer rooms at a higher price than to sell more rooms at a lower price.

For most properties, we recommend setting the variable cost to at least 50% of the Minimum Price. If your prices are going too low for your preference, you can raise them to up to 80% of your Minimum price.

How do I set Individual Minimum and Maximum prices within RoomPriceGenie?

 

Setting Minimum and Maximum Price for the Reference Room

This will be your default minimum and maximum price levels.

1. Click on Pricing Strategy > Room Setup

2. Click on the Reference Room

3. Add the Minimum price

4. Add the Maximum price

Save

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Setting Minimum and Maximum Price for your Derived Room(s)

This will be your default minimum and maximum price levels.

1. Click on Pricing Strategy > Room Setup

2. Click on the Derived Room

3. Add the new derivation percentage (%) value 
OR

4. Add the absolute price for that room type

*Optional 1: On the bottom, you find the "Derived Min/Max" button. Instead of setting your new boundaries manually, you can derive them from your reference room following the derivation rules. 

**Optional 2: you can also use the avage price applied for the next 365 days to calculate a minimum and maximum price by clicking on "Get Current Avarage"

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Adjusting the miniumum and maximum price on the day-to day

There will be situations where you may want to override your standard pricing rules. For example, during a local event that increases demand, you might see an opportunity to raise your prices above the usual range. Conversely, during a very low season, you might want to offer some rooms at lower-than-usual rates to attract more bookings.

In cases like these—when you need to adjust the minimum or maximum rate for a specific date—you have two options:

• Use Bulk Edit: Click on the “Bulk Edit Prices” en haut à droite de votre calendrier pour appliquer des modifications sur plusieurs dates à la fois.
• Modifier une date spécifique: Cliquez directement sur le jour que vous souhaitez ajuster dans le calendrier pour effectuer des modifications uniquement pour cette date.