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Tier rates

Tier rates are an alternative pricing method for hoteliers who prefer to manage pricing through predefined rate levels rather than entering variable daily rate values.

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Written by Michelle Normoyle
Updated over a week ago

Tier rates

Tier rates are an alternative pricing method for hoteliers who prefer to manage pricing through predefined rate levels rather than entering variable daily rate values.

Tier rates are best for hotels with relatively flat rate structures who want simplified pricing management.

It is important to note tiers are not recognized by most external channels or PMS systems, so consider your entire technology stack before implementing.

⚠️Important: Property-wide configuration.
Your property can only use either tier simple or tier advanced, not both. This is a property-wide setting that determines which tier functionality is available across your entire system. Contact your system administrator or the support team to enable your chosen setting [email protected]


Tier rate functionality

Instead of setting individual daily rates, you create rate tiers for example high, medium and low and assign different dollar amounts to rates in each tier. Then you assign which tier applies to each stay date on your calendar.

  • Multi-night stays: Multiple tiers may be applicable to one availability request. For example, if Monday is assigned tier A and Tuesday is assigned tier B, a guest staying Monday to Tuesday, for their chosen rate code, will pay tier A pricing for Monday and tier B pricing for Tuesday.

  • The key concept: You assign a tier to a date, and all rate codes sell at their respective tier values for that date. This makes pricing strategy management simple just change the tier assignment instead of individual rate values.

  • For all rate codes: Every rate plan can have different amounts loaded for each tier, but they all follow the same tier assignment calendar.

Create a tier simple

Follow the steps below if you would like to create a tier simple.

  1. Go to Rate Management.

  2. Go to Tier Structure.

  3. Go to Rate Tier.

  4. Click Create New tab.

  5. Enter the display name for the tier.

  6. Enter a two character internal code.

  7. Check if this should be the default tier.

  8. Enter display order number.

  9. Click Save.

Tier simple derivation - this is optional

Tiers may be derived from one another to more efficiently set pricing. When a tier is derived from another, it automatically inherits the rate structure and calculates prices based on the parent tier using your specified adjustments.

⚠️Important: The default tier cannot be derived from another tier, as it must always be available to ensure the hotel can continue selling.

Set up tier simple derived pricing

Follow the steps below to create a tier simple derived pricing.

  1. Go to Rate Management.

  2. Go to Tier Structure.

  3. Go to Rate Tier.

  4. Click on the Rate Tier Name to go to the modify tab.

  5. Check the Derived Rate Tier box and the Modify link will appear.

  6. Click Modify to open the modal.

  7. Choose the parent tier from dropdown.

  8. Enter positive or negative percentage for each occupancy level:

    • Single.

    • Double.

    • Triple.

    • Quad.

  9. Enter positive or negative dollar amount for each occupancy level:

    • Single.

    • Double.

    • Triple.

    • Quad.

  10. Choose your preference for rounding:

    1. Not specified, displays as calculated.

    2. Round up to the nearest cent.

    3. Round down to the nearest cent.

  11. Enter the minimum price that will be used if calculated rate falls below this amount, this is known as rate floor and is an optional field.

  12. Enter the maximum price that will be used if calculated rate exceeds this amount, this is known as rate ceiling and is an optional field.

  13. Click Update to save derivation settings.

  14. Click Save.


Assigning rate code values to simple tiers

There are two ways to enter pricing:

Multi room single rate

Follow the steps below to set rate code pricing for one tier at a time across multiple room types.

  1. Go to Rate Management.

  2. Go to Tier Rate.

  3. Click Update to open modal.

  4. Go to Multi Room Single Rate tab.

  5. Choose the rate tier to set pricing for.

  6. Select rate category to filter rate codes.

  7. Select the rate code.

  8. Update rate values:

    • Manual entry: Enter or overwrite values for each room type and occupancy level.

    • Calculate option: If values exist, adjust systematically:

      • Choose calculation method: Amount increase or decrease or percent increase or decrease.

      • Enter positive number for amount or percentage.

      • Choose rounding method: None, nearest dollar or down to dollar.

  9. Close window after update:

    • Check if finished, leave unchecked to continue with more tiers or rates.

  10. Click Save.

Single room multi rate

Follow the steps below to set rate code pricing across multiple tiers for one room type at a time.

  1. Go to Rate Management.

  2. Go to Tier Rate.

  3. Click Update to open modal.

  4. Go to Single Room Multi Rate tab.

  5. Choose the room type to set pricing for.

  6. Select rate category to filter rate codes.

  7. Select the rate code.

  8. Update rate values:

    • Manual entry: Enter or overwrite values for each occupancy level for each tier.

    • Calculate option: If values exist, adjust systematically:

      • Choose calculation method: Amount increase or decrease or percent increase or decrease.

      • Enter positive number for amount or percentage.

      • Choose rounding method: None, nearest dollar or down to dollar.

  9. Close window after update:

    • Check if finished, leave unchecked to continue with more tiers or rates.

  10. Click Save.


Managing simple tier calendars

Once rate values are assigned, assign specific rate tiers to dates.

Assigning tiers at hotel level (Tier Simple)

Follow the steps below to assigning tiers at hotel level.

  1. Go to Rate Management.

  2. Go to Tier Calendar (Hotel).

  3. Click Update to open modal.

  4. Enter the date range for tier assignment.

  5. Choose the tier code for each day:

    • Multiple date ranges and tiers may be assigned simultaneously.

  6. Click Update to return to calendar screen.

  7. Calendar display is color coordinated:

    • Green dates indicates specific tiers are assigned.

    • Yellow dates indicates default tier is in use.


Tier advanced configuration

Use this section if your property is configured for tier advanced.

Tier advanced provides additional booking restrictions and rate-level tier management capabilities beyond the basic simple tier functionality.

Key tier advanced features

Outlined below are key tier advanced features.

  • Max LOS, min LOS, lead time and book within restrictions at the tier level.

  • Rate codes can be managed independently of hotel-level tier assignments.

  • All rate codes using a tier follow the tier's booking restrictions.

Creating a tier advanced

Follow the steps below to create a tier advanced.

  1. Go to Rate Management.

  2. Go to Tier Structure.

  3. Go to Rate Tier.

  4. Click Create New tab.

  5. Enter the display name for the tier.

  6. Enter two character internal code.

  7. Default rate tier should be checked if this should be the default tier.

  8. Enter the maximum night stay allowed for this tier.

  9. Enter the minimum night stay allowed for this tier.

  10. Enter days in advance of arrival this tier is bookable.

  11. Enter days prior to arrival this tier becomes bookable.

  12. In sorting enter a display order number.

  13. Click Save.


Tier advanced derivation this is optional

Tiers may be derived from one another to more efficiently set pricing. When a tier is derived from another, it automatically inherits the rate structure and calculates prices based on the parent tier using your specified adjustments.

⚠️Important: The default tier cannot be derived from another tier, as it must always be available to ensure the hotel can continue selling.

Set up tier advanced derived pricing

Follow the steps below to set up tier advanced derived pricing.

  1. Go to Rate Management.

  2. Go to Tier Structure.

  3. Go to Rate Tier.

  4. Click on the Rate Tier Name to go to the modify tab.

  5. Check the Derived Rate Tier box and the Modify link will appear.

  6. Click Modify to open the modal.

  7. Choose the parent tier from dropdown.

  8. Enter positive or negative percentage for each occupancy level:

    • Single.

    • Double.

    • Triple.

    • Quad.

  9. Enter positive or negative dollar amount for each occupancy level:

    • Single.

    • Double.

    • Triple.

    • Quad.

  10. Rounding choose your preference:

    • Not specified displays as calculated.

    • Round up to the nearest cent.

    • Round down to the nearest cent.

  11. Rate floor this is optional set the minimum price that will be used if calculated rate falls below this amount.

  12. Rate ceiling this is optional set the maximum price that will be used if calculated rate exceeds this amount.

  13. Click Update to save derivation settings.

  14. Click Save.


Assigning rate code values to advanced tiers

There are two ways to enter pricing:

Multi room single rate

Follow the steps below to set rate code pricing for one tier at a time across multiple room types.

  1. Go to Rate Management.

  2. Go to Tier Rate.

  3. Click Update to open modal.

  4. Go to Multi Room Single Rate tab.

  5. Choose the rate tier to set pricing for.

  6. Select rate category to filter rate codes.

  7. Select the rate code.

  8. Update rate values:

    • Manual entry: Enter or overwrite values for each room type and occupancy level.

    • Calculate option: If values exist, adjust systematically:

      • Choose calculation method: Amount increase or decrease or percent increase or decrease.

      • Enter positive number for amount or percentage.

      • Choose rounding method: None, nearest dollar or down to dollar.

  9. Close window after update:

    • Check if finished, leave unchecked to continue with more tiers or rates.

  10. Click Save.

Single room multi rate

Follow the steps below to set rate code pricing across multiple tiers for one room type at a time.

  1. Go to Rate Management.

  2. Go to Tier Rate.

  3. Click Update to open modal.

  4. Go to Single Room Multi Rate tab.

  5. Choose the room type to set pricing for.

  6. Select rate category to filter rate codes.

  7. Select the rate code.

  8. Update rate values:

    • Manual entry: Enter or overwrite values for each occupancy level for each tier.

    • Calculate option: If values exist, adjust systematically:

      • Choose calculation method: Amount increase or decrease or percent increase or decrease.

      • Enter positive number for amount or percentage.

      • Choose rounding method: None, nearest dollar or down to dollar.

  9. Close window after update:

    • Check if finished, leave unchecked to continue with more tiers or rates.

  10. Click Save.


Managing advanced tier calendars

Once rate values are assigned, assign specific rate tiers to dates.

Assign tiers at hotel level or tier advanced

Follow the steps below to assign tiers at hotel level or tier advanced.

  1. Go to Rate Management.

  2. Go to Tier Calendar (Hotel).

  3. Click Update to open modal.

  4. Enter the date range for tier assignment.

  5. Choose the tier code for each day:

    • Multiple date ranges and tiers may be assigned simultaneously.

  6. Click Update to return to calendar screen.

  7. Calendar display is color coordinated:

    • Green dates indicates specific tiers are assigned.

    • Yellow dates indicates default tier is in use.

Assigning tiers at rate level or tier advanced only

This feature allows specific rate codes to be managed independently of hotel-level tier assignments - useful for negotiated or contracted rates that don't follow general availability rules.

Enable rate code for independent tier management

Follow the steps below to enable rate code for independent tier management.

  1. Go to Rate Management.

  2. Go to Rate Code.

  3. Click on the Rate Code to go to the modify tab.

  4. Check the Single Tier box to enable this rate to be sold independently of hotel-assigned tiers.

  5. Click Save.

Assign rate code specific tiers to dates

Follow the steps below to assign rate code specific tiers to dates.

  1. Go to Rate Management.

  2. Go to Tier Calendar (Rate Code).

  3. Click Update to open modal.

  4. Select rate category to filter rate codes.

  5. Select the rate code.

  6. Enter the date range for tier assignment.

  7. Choose the tier Code for each day.

    • Multiple date ranges and tiers may be assigned simultaneously.

  8. Click Update to return to calendar screen.

Calendar display

Each color represents a specific item.

  • Green dates depict specific tiers assigned.

  • Yellow dates depict falls back to hotel level tier assignment.

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