Which Pricing Model is best for you
Booking.com
Booking.com supports 2 types of pricing models: the "Length Of Stay" Pricing Model and the "Default" Pricing Model.
- Length Of Stay (LOS) Pricing
The "Length Of Stay" Pricing Model should be used only when the rates are based on the number of nights of stay. When using the "Length Of Stay" Pricing Model, Booking.com will accept rates for up to 30 nights of stay. The total amount for the bookings will be calculated by Booking.com, by taking the cost defined for the requested number of nights for the arrival date. Due to this behavior, the "Length Of Stay" Pricing Model is considered to be inaccurate for many pricing policies and it's therefore not recommended to those that do not apply different rates depending on the number of nights of stay. In case of seasonal prices, with low/middle and high season on certain dates, a booking overlapping the dates of two seasons would be charged for the rates applied on the first night (check-in day). Let's make an example: the following table contains example prices for the 20th of January and for the 21st of January.
20 | 21 | |
1 Night | 50 € | 60 € |
2 Nights | 90 € | 110 € |
If a user were to book two nights with check in on the 20th, with the LOS Pricing Model he would have paid 90 €. If he had booked two nights with check in on the 21st, he would have paid 110 €. However, if he had booked for the 20th, and the pricing model was the Default Pricing model, he would have paid 110 € (Price of one night on the 20th (50) + Price of one night on the 21st (60) ). Basically with the LOS Pricing Model the total cost for the booking is taken from the day of arrival's cost for the selected number of nights.
Note: Occupancy pricing for number of adults is supported, like with the "Default" Pricing Model.
- Default Pricing
The "Default" Pricing Model is the most used Pricing Model, and it allows you to specify each room's price for each day of the year. Prices are set once on Booking.com, and then used for multiple nights of stay, by adding each night's cost to the total cost of the booking. This means you can specify a different cost for every day of the year (For example Festivities and Holidays). You can also set additional costs based on the number of guests that are occupying a room, by using Derived Prices.
Derived Prices allow you to change the cost of the booking based on the number of people that are actually going to be occupying the room. For example in the screen shot above will show how the pricing per occupancy will be applied for this Triple Room. When occupied by 1 Adult, a discount of €10 per night will be applied. When occupied by 2 Adults instead, a 8% discount will be applied on the total cost. Say that we need this room for 3 nights and the default cost for the full occupancy in the Rates Table is of €300 (€100 per night), 1 Adult will pay €270 for 3 nights (€90 * 3 nights), 2 Adults will pay €276 (€300 - 8%). 3 Adults will pay €300 because in this example there isn't any rate-change-flag for that occupancy so the cost from the Rates Table will be taken. To send the Derived Prices correctly, you must make sure that on the "Rates Upload" page of VikChannelManager you have checked the "Send Derived Prices for Occupancy Rules" option, as shown in the screenshot below. You can find it by clicking on "Advanced Options" in the bottom right corner of the page.
- Check which Pricing Model you are using
You can check which Pricing Model you are using by doing the following: if in your Booking.com Extranet Account you are be able to see a menu link called "LOS Table", you are using the "Length Of Stay" (LOS) Pricing Model. Otherwise, you are using the "Default" Pricing Model.
- Change your Pricing Model
To switch pricing models, please contact us, and we will forward your request to the Booking.com Connectivity Team. After the request is sucessful, please re-synchronize all rooms, as VikChannelManager cannot detect these changes.
Expedia
Expedia supports 3 types of pricing models: the “Per Day" Pricing Model, the "Occupancy" Pricing Model and the “Per Length Of Stay” Pricing Model.
- Per Day Pricing
The “Per Day” Pricing Model calculates rates on a daily basis, using the given price as the default, and then multiplying for the number of days of permanence. This Pricing Model requires that you insert a value to be used as a standard, that can be altered individually for each day of the year. This is very similar to the Booking.com “Default” Pricing Model.
- Occupancy Pricing
The “Occupancy” Pricing Model calculates rates on a daily basis, using the given price as the default, but modifying it based on the amount of people that are booking the room. This Pricing Model requires that you insert a value to be used as a standard, and then you must define some rules that are used to alter that price. You can set discounts or charge extra based on how many people are using the room. This Pricing Model is very similar to the Booking.com “Derived Pricing”, which is a part of the “Default” Pricing Model.
- Per Length Of Stay (LOS) Pricing
The “Per Length Of Stay” Pricing Model calculates rates based on the amount of nights that the guests will be spending at the facility. This Pricing Model requires that you specify a set of values to be used for a day. These values will be the costs of one to thirty nights spent in the facility. Example: 1 Night - 50 €, 2 Nights - 90 €, 3 Nights - 120 €, etcetera. This Pricing Model is very similar to the Booking.com “Length Of Stay” Pricing Model.
- Check which Pricing Model you are using
You can check your Expedia Extranet (Expedia Partner Central) to see which Pricing Model you are using. You can also change it from there at any time.
Notice: If you are using more than one channel, please make sure to use very similar Pricing Models on both, this way the prices you set will be alike on both websites, and you won’t have to change them while inserting them on different channels.