What is the definition of Derived Rates in the hotel industry?
A rate that permits owners, managers and/or revenue managers to inform the hotels rate(s) by accumulating or subtracting a total amount or percentage from the bottom rate, rather than adjusting the rate each time it requests to be accustomed. For example, if a hotel wants to comprise a special breakfast rate to their rack rate. This rate would then only be sold and used by a visitor if they ask for to comprise breakfast in their room price, other than that, the rack rate would not alter.
Besides the expediency of adjusting the value of rates, this is done so that concession or special rates can be affected easily when a new voucher, package or rate is introduced. Through this rate, hotels have the option to control and set the max or least amount a discount is prearranged out by staff and managers in rooms and/or outlets. For example, a hotel possessor may set the utmost discount for their hotels restaurant at 50% if a guest nitpick about their food. This is done so that the discount sum is not determined by personal manger or employee on duty.
In property management systems, there is always an alternative to add Derived Rates to a existing rate. The technicalities of doing this depends on the type and corporation of the PMS.