Use Derived Rates to connect to multiple rates on OTAs

Derived Rates allow you to connect your Lodgify rentals to multiple rates on Booking.com and Expedia. For example, you could offer guests the option to book for a standard rate with the possibility of cancellation, or to book the non-refundable option.

Derived Rates can currently only be applied to external platforms, they do not apply to your website. For this reason, you must be connected to at least one OTA via our API channel managers in order to use Derived Rates. Learn more about using Lodgify channel managers.

Read about:

• Configuring Derived Rates
• Applying Derived Rates
• Updating your Rates
• Removing a Derived Rate
• Calculating Derived Rates
  • Positive Absolute Amount
  • Negative Absolute Amount
  • Positive Percentage
  • Negative Percentage
• Linked resources

Configuring Derived Rates

You can create a Derived Rate directly in the Channels section of your rental:

1. Go to your Main Menu in the top left corner and select Rentals.
2. Select the rental that you want to edit, and select Derived Rates at the bottom of the left side bar.
3. Click Assign Derived Rates. A slider will open up where you can click Create new derived rate.
   
   
   
4. Enter the Name of your rate in all applicable languages, and configure the Rate Adjustment as either an absolute amount or a percentage.
   💡Note: To enter a negative amount or percentage, simply add "-" before the number. For example, -50. On the contrary, It is not necessary to add "+" for a positive amount.
   
5. Select which Policy should apply for bookings booked with the Derived Rate and click Save.
   💡Note: At the moment, policies are not yet synchronized with OTAs. This feature is still in development. Still, we strongly recommend you already create the policy that you later want to export to, for example, Expedia. Learn how to create Policies.

You can also create a Derived Rate from your Settings Section.
💡 Note: If you create the Derived Rate in your Settings section, don't forget to associate it with your rental.

Applying Derived Rates

Derived Rates automatically apply to the rental linked to this rate. However, once the Derived Rate is created, you can either add restrictions or apply it to further rentals.

💡Note: You can continue to use Mark-ups whilst using Derived Rates. In this case, the Mark-up will be applied on top of your Derived Rate.

Updating your Rates

Removing a Derived Rate

If you no longer wish to apply a Derived Rate to a rental, you can easily un-assign the rate from the rental or rental type.

💡Note: If you un-assign a Derived Rated that is synchronized with an OTA, you must deactivate the corresponding rate in the OTA immediately. Otherwise, you will risk over-bookings, as Lodgify will no longer connect to that rate.

To remove a derivated rate, follow these steps:

1. Go to your Main Menu in the top left corner and select Rentals.
2. Select the rental that you want to edit.
3. Select Derived Rates from the left menu and click the three dots next to the rate you want to edit.
4. To unassign a derived rate from a rental, click unassign
   OR to unassign a derived rate from a rental type (legacy feature), click Edit restriction. A slider will open up where you can untick the Rental Types that the Derived Rate should not apply to.

Calculating Derived Rates

Derived Rates are an adjustment to the price per night (including the nightly rate of your price set per week and/or per month) of your Base Rate. The Base Rate consists of your Default and Season Rates, including the short stay fee.

Regardless of the configurations of your Derived Rates, the calculation of the price per night always follows the same formula:

• Firstly the Base Rate is calculated by determining the nightly price.
• Then the Derived Rate adjustment is added to the Base Rate.
• If there is a mark-up, it will be added at the end.
• Finally, the fees and taxes are added at the same time as the mark-up, or after.

To summarize, we always take the price per night as the base price, and add the nightly adjustement to this price.

For example, with a Derived Rate adjustment set to 50$, the calculations would be as follows:

Base Rate + rate adjustment = Derived Rate price per night

💡Note: Fees and Taxes are calculated after the Derived Rate adjustment. Additionally, through advanced configurations, you're able to restrict fees and taxes from applying to a Derived Rate. Whether fees and taxes are exported to OTAs, depends on the settings, and differs per OTA. Learn how fees and taxes are exported. 

Each of your Derived Rates can be configured as one of the following settings:

• Positive Absolute Amount
• Negative Absolute Amount
• Positive Percentage
• Negative Percentage

Positive Absolute Amount

This option allows you to add a flat amount to the price per night of your Base Rate.

Example: Your Base Rate has a nightly price of 100$ in the Default Rate and 125$ in the Season rate. Your Derived Rate is set to an Absolute Amount of 50$ adjustment. This Derived Rate is exported to Booking.com. As a result, the room price per night is:

• 100$ on your website when the Default Rate applies
  • 150$ on Booking.com when the Default Rate applies
• 125$ on your website when the Season Rate applies
  • 175$ on Booking.com when the Season Rate applies

Calculation example for nightly price + positive absolute amount:

Calculation example for weekly price + positive absolute amount:

Other example: Calculation for monthly price + positive absolute amount:

Negative Absolute Amount

This option allows you to deduct a flat amount from the price per night set in your Base Rate.

Example: Your Base Rate has a nightly price of 100$ in the Default Rate and 125$ in the Season rate. Your Derived Rate is set to an Absolute amount of -15$. This Derived Rate is exported to Booking.com. As a result, the room price per night is: 

• 100$ on your website when the Default Rate applies
  • 85$ on Booking.com when the Default Rate applies
• 125$ on your website when the Season Rate applies
  • 110$ on Booking.com when the Season Rate applies

💡 Note: To add a negative adjustment, simply type a minus before the amount.

Calculation example for nightly price + negative absolute amount:

Calculation example for weekly price + negative absolute amount:

Other example: Calculation for monthly price + negative absolute amount:

Positive Percentage

With this option, a set percentage of the nightly price in the Base Rate is added to the price per night of the Derived Rate.

Example: Your Base Rate has a nightly price of 100$ in the Default Rate and 125$ in the Season rate.
Your Derived Rate is set to a Percentage of 5%. This Derived Rate is exported to Booking.com.
As a result, the room price per night is: 

• 100$ on your website when the Default Rate applies
  • 105$ on Booking.com when the Default Rate applies
• 125$ on your website when the Season Rate applies
  • 131.25$ on Booking.com when the Season Rate applies

Calculation example for nightly price + positive percentage:

Calculation example for weekly price + positive percentage:

Other example: Calculation for monthly price + positive percentage:

Negative Percentage

With this option, a set percentage of the price per night in your Base Rate is added to the price per night in your Derived Rate.

Example: Your Base Rate has a nightly price of 100$ in the Default Rate and 125$ in the Season rate. Your Derived Rate is set to a Percentage of -5%. This Derived Rate is exported to Booking.com. As a result, the room price per night is: 

• 100$ on your website when the Default Rate applies
  • 95$ on Booking.com when the Default Rate applies
• 125$ on your website when the Season Rate applies
  • 118.75$ on Booking.com when the Season Rate applies
•  

💡 Note: To add a negative adjustment, simply type a minus before the amount.

Calculation example for nightly price + negative percentage:

Calculation example for weekly price + negative percentage:

Other example: Calculation for monthly price + negative percentage:

You can read more about your rental rates in this article.