Configure Room Hierarchy & Rate Rules in Cloudbeds RMS

Introduction

Use this guide to configure two areas that shape your property's pricing strategy in Cloudbeds RMS: Room Hierarchy, where you define pricing boundaries and rate differences between room types, and Base Rate Rules, where you set your baseline market position and fine-tune it by weekday, month, lead time, and aggressiveness.

If you change your minimum or maximum rate, Cloudbeds RMS also checks your current rates against the new boundaries and generates new recommendations where applicable.

Table of contents

• How to access these settings
• Configure Room Hierarchy
• Base Rate Rules (baseline strategy and fine-tuning)
• Save your Base Rate Rules changes

How to access these settings

Open Cloudbeds RMS settings to configure Room Hierarchy or Base Rate Rules.

1. Open the Account Menu in the top-right corner.
2. Click Settings.

3. Go to Rate Management, then select Room Hierarchy or Base Rate Rules.

Configure Room Hierarchy

Use Room Hierarchy to define the pricing boundaries for your base rate and set how each room type should be priced relative to it.

Set the minimum and maximum rate boundaries

In the Min/Max Rate section, define the overall pricing boundaries Cloudbeds RMS uses:

• Maximum Rate: The highest rate Cloudbeds RMS can apply.
• Minimum Rate: The lowest rate Cloudbeds RMS can apply.
• Comp above: How far above the competitor median your rate can be.
• Comp below: How far below the competitor median your rate can be.

The chart shows how the configured boundaries apply to your rates and compare with the competitor median throughout the year.

Set room-type offsets

In the Room Hierarchy table, enter an offset for each room type to define its price relative to the base rate.

• A positive offset makes the room type more expensive than the base rate.
• A negative offset makes the room type cheaper than the base rate.
• An offset of 0 applies the base rate without an adjustment.

Negative offsets allow you to change which room type is the cheapest in the hierarchy. Existing room-type offsets remain unchanged unless you edit them.

Choose the offset type

Select how Cloudbeds RMS should calculate the room-type offsets:

• $ Absolute: Enter a fixed currency amount above or below the base rate.
• % Percentage: Enter a percentage above or below the base rate.

Cloudbeds RMS calculates the Minimum Rate and Maximum Rate for each room type automatically based on the configured minimum and maximum rate boundaries and the room-type offset.

Drag the rows to reorder the room types when needed. Review the calculated minimum and maximum rates, then click Save.

What happens after saving new minimum or maximum rates

When you change the Minimum Rate or Maximum Rate in Cloudbeds RMS and save, the system checks existing rates against the new limits. Dates with rates below the new minimum or above the new maximum are evaluated for new price recommendations, which usually appear within 5 minutes. The same behavior applies to changes made through Bulk Update.

• Without Autopilot: New recommendations appear for you to review and apply manually. No additional warning appears when saving the limits.
• With Autopilot: Before the new limits are saved, a confirmation message shows how many days will be updated. Select Save new rate limits to confirm. Recommendations are then pushed automatically at the next optimization.

If a date outside the new limits does not receive a recommendation: The Smallest Acceptable Price Change setting still applies. If the difference between the current rate and the new recommended rate is smaller than this threshold, Cloudbeds RMS does not generate that recommendation. If you recently saved your changes, allow about 5 minutes for recommendations to appear.

Base Rate Rules (baseline strategy and fine-tuning)

Use Base Rate Rules to define your property's typical market position. These settings establish a baseline rate that Cloudbeds RMS can adjust according to market conditions, pickup, and demand.

Base adjustment

Set your typical average position compared with the competitor median, from -75% to 100%. This determines the baseline used across the other controls.

Day-of-week adjustments

After setting the base, refine it by weekday. The chart compares the market rate in green, your current hotel rate in light blue, and the new hotel base rate in dark blue. Enter a percentage adjustment for each day, from -75% to 100%, to align the base rate with typical weekday patterns.

Monthly adjustments

Apply the same approach by month to reflect seasonality. Adjust the baseline for each month to match typical demand patterns.

Lead time adjustments

Optionally fine-tune the base rate by booking window, such as 0-7 days, 8-14 days, 15-30 days, 31-90 days, and 90+ days. In most cases, leave these values at 0%, because the AI optimizer handles booking-window behavior automatically. Use these fields only when you have specific pricing strategy guidance.

Aggressiveness

Choose how assertively the system reacts to pickup and market changes: Very Conservative, Conservative, Moderate, Aggressive, or Very Aggressive.

Recommended default: Moderate.

Save your Base Rate Rules changes

After updating the Base Rate Rules settings, click Save Changes to apply them to your property.

Next Operational Step

After configuring your pricing rules, review How to use the AI Autopilot feature to understand how recommendations can be applied automatically, if you use Autopilot.