PIE - Rules and Alerts - Creating/Editing an Occupancy Based Rule / Alert

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The occupancy based rules are triggered by the changes in your occupancy and affect your daily rates. You can set up PIE to increase/decrease all or specific accommodations' rates once the occupancy reaches a certain percentage. You can set a rule to just suggest those price changes, which you will have to manually accept, or to automatically change your prices based on the parameters you set in the rule.

Things to Note:

Before you create a rule, you must set your lowest and highest price limits on 'Rules and Alerts' page. Setting min/max limits prevents the system from recommending/applying prices outside of the selected parameters. You will not be able to create an automated rules before these parameters are configured.

  • When an occupancy rule is created - the changes don't apply to the dates that already meet the conditions specified in the rule (i.e. if a rule is set to increase the price by $10 when occupancy is >30%, all days that are already above 30% will not increase). The price will increase in the following situations: when occupancy reaches the threshold (i.e. moves from 29% to 30%) or when a day enters the date range specified in the rule parameters (i.e. 3 days out) and meets the conditions (i.e. it's at 32% when it enters the range). Same logic applies to the decreasing rules.
  • If you would like to increase the rates for the dates that already have a high occupancy or decrease for those that are at low % - you can do so manually through the Availability Matrix or PIE's Rate Manager. You would only need to do it once, and then PIE rules will do the rest for you by following the occupancy and adjusting the prices accordingly.
  • If a rate change has been applied by a rule (automatically or manually) - there is no setting to revert the rate back to the original value. You would need to update the rate manually via the Rate manager in PIE, or in myfrontdesk calendar/Availability Matrix.
  • Any time your occupancy changes, this type of rule can be triggered. The following actions may trigger an occupancy rule: reservation created/modified/canceled/deleted; accommodation type added/removed; quantity of rooms modified; rooms linked/unlinked, or changed via shared inventory.
Creating an Occupancy Based Rule

1. In myfrontdesk, open PIE section
2. Go to 'Rules and Alerts'
3. Click '+Create New Rule / Alert'

Details

1. Select 'Occupancy based rule / alert'
2. Set a rule name
3. Select whether the rule should be applied to overall occupancy (the rate will be changed for all accommodations) or to specific room types

Parameters

1. Set up a condition for rate changes: whether to change the rate when occupancy is greater or less than a specific percentage
2. Select whether to increase or decrease rates by percentage/fixed amount
3. Select whether to apply the rule only to the specified number of days out
By checking this box, you can specify how far out this rule / alert should apply. If, for example, you are creating an occupancy based rule to trigger a rate increase when the occupancy is over 50%, you may want this rule to apply only for dates that are further than a week out, rather than increasing tomorrow's rate when only being at 50% occupancy. To do this, you can specify to only apply this rule from 7 days out.

In the example above, the rate of Econom room will be increased once your occupancy is greater than 70% starting from dates that are further than a week out.

Rounding

Enter a value for rounding that will ensure that the resulting rates are consistent with your current pricing structure.

For example, entering 9 will result in your recommended/updated rates end with 9 (i.e. $89, $99, $109, etc.), entering 00 will result in the following pricing structure: 1100, 1200, 1300... etc. You will immediately see the example of your prices, once you enter the value in the "Round to nearest" field.

You can skip this section if you do not want to round your rates.

Schedule

1. Select whether you want to have the rule always active or running on a specific schedule
2. If you selected 'Specific date range' you will need to select start and end dates as well as days of the week when the rule will be active
3. You may add several date ranges

Activation

Select whether you want to
1. require manual confirmation of the rule (means that you will need to manually confirm each rate change on Rate Manager)
2. automatically apply rule (allow the system to make rate changes immediately when rule is triggered)

Please note that by selecting this option you are giving the system permission to make automatic rate changes based on your parameters.

Click Save Rule

Editing an Occupancy Based Rule

To make changed to a previously created occupancy rule, follow these steps:

1. Access Rules and Alerts page
2. Find the desired rule and click on "Edit" on the right side

This will open the modal with the Rule details.

3. Make necessary changes in the corresponding sections
4. Then click "Save"

Changing the mode from manual to auto for an existing Occupancy Based Rule

If you have an existing manual rule that you would like to change to automatic, follow these steps:

1. Access Rules and Alerts page
2. Find the desired rule and click on "Edit" on the right side, as described in "Editing an occupancy based rule" section
This will open the modal with the Rule details.
3. Scroll down to the "Activation" section and select "Automatically apply rule"
4. Then click "Save"

Note that if there are any current pending price recommendations that were previously generated by this rule, you will see the following popup notification. If you would like to apply those recommendations, click Apply. Otherwise, click Remove. This will delete all existing pending suggestions.

What happens once the Occupancy Based Rule is triggered

Once an automated rule is triggered:

 The system will update the prices for you, based on the parameters to specified in the rule settings (including rounding, and min/max price limits).

Once a manual rule is triggered:

1) exclamation mark will appear on PIE  icon

2) on the Rate Manager calendar view, you  will see a yellow notification with the suggested price change
You can approve (green button) or deny (red button) the suggestion.

3) You may also click on cell above the alert to open 'Accommodation details' window, where you may also apply or deny the rule or make additional modifications to the prices or stay restrictions.

Please note that once a rule is applied - the price can't be reverted back in one click. You would need manually update the price from the Rate Manager/Calendar/Availability Matrix to the desired value.

You may filter out occupancy based rules triggered/applied during a specific date range in the Rate Manager list view.
In this view, you may also approve or deny several rules one-by-one or all at once, using "Bulk actions" feature.

How does the system calculate the price if there are several rules created for one room type?

The occupancy based rule is working on accumulative basis. That means that the rate will be increased/decreased based on the current room rate for the current date

Example:

  • 2 rules are created for today: to increase the rate by 5.00 if the occupancy is greater than 60%; to increase the rate by 10.00 when the occupancy is greater than 80%
  • Base rate is 100.00 for today

Case 1 (if the rules are approved automatically): Occupancy reaches 61% - the system will increase the rate to 105.00 (current rate 100.00 + 5.00). Then the occupancy reaches 81% - the system will increase the rate to 115.00 (current rate 105.00 + 10.00)

Case 2 (if the rules are approved manually): Occupancy reaches 61% - the system triggers the rule and suggests to approve the new price - 105.00 (current rate 100.00 + 5.00). User denies this rule or ignores it. The room rate remains 100.00. Then the occupancy reaches 81%. The system triggers new rule and suggests to increase the price to 110.00 (current rate 100.00 + 10.00)

User can approve only 1 rule for one room type and one date, then he needs to SAVE it to approve/deny the next rule (within 1 room type and 1 date)

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