The PACKAGE Rate
Table of Contents
We will build a Flexible Room Rate packages will be easy:
- Calculate the savings to the customer
- Allocate package revenue to departments and amenities
- Provide a record of all packages offered
- Test potential package offers
4 steps
Step 1: Define season names or date ranges for up to five pricing seasons.
Step 2: Enter Room/View types at your property. Then, enter both benchmark rates and cost per occupied room, by season.
Step 3: Work with other departments to create a list of all property-related components as well as their retail price and cost to the property by season. Both retail price and cost to property should exclude any gratuity, as that will be calculated separately.
- A property-related component is defined as a non-room package component that can be discounted. Revenue is allocated back to a department managed by the property.
- For components that are service related, and cost cannot easily be calculated, enter the lowest acceptable price (discount threshold).
Step 4: Work with other departments to create a list of all outside vendor components along with the retail price and cost to the property by season.
- An outside vendor component cannot be discounted; revenue is fixed and allocated to the vendor.
Instructions for Completing Package Template
Once the Inputs tab is complete, the rooms and components entered can be combined to create packages. The spreadsheet automatically calculates:
- Package Price
- Cost to Customer
- Finance Allocations
- Profit or Loss From Each Room and Component
Follow these steps in the Package Template (cells in yellow must be filled):
- Enter package name, rate program, select room/view types, and number of nights (paid and comp).
- Enter percent discounts for rooms and property-related components by season.
- Use hide season button if package is not offered in a season.
- Select components (Per Night PN or Per Stay PS) and apply discounts. Enter gratuity % if required.
- Review package rates for recommendation or manual adjustment.
- Choose calculation method: recommended, manual, or daily premium.
- Review pricing, revenue distribution, and profitability vs competitors.
- Click "Save Package" to copy package to a new tab.
- Reset template for new package.
- Build packages in PMS; all calculations and dropdowns remain functional.
Daily Revenue Distribution Methodology
Room Revenue Distribution:
Retail package rate minus hard costs is divided proportionally to calculate actual revenue per room night.
Room Profitability:
Difference between daily revenue distribution and cost per occupied room.
Comp Room Note: Pro-rated room rates are calculated including comp rooms.
Property Component Distribution:
Calculated similarly to rooms using retail % allocation across paid nights.
Property Component Profitability: difference between revenue distribution and component cost.
Comp Room Note: Per Night components cost distributed across all paid days if comp rooms exist.
Outside Vendor Components:
Hard costs where revenue distribution is based on vendor component cost.
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Check out my detailed hotel data analytics projects on GitHub Portfolio
📊 Forecast Accuracy: Forecast vs Actual 📈 Segment Trends: Revenue Mix by Channel
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