How does the pricing work within iPRO?

Modified on Thu, 5 Sep at 10:46 AM

The following guide will give live examples for the calculations used for various different scenarios that are available within the pricing functionality of iPRO.

Nightly Pricing

Whether you set your rates per night or utilise a third-party dynamic pricing tool like PriceLabs or Beyond Pricing, when using nightly pricing you can either setup nightly seasons with a unique nightly rate or you can have a longer season with one default rate.

Nightly season example (typically used when pulling through rates via Beyond Pricing / PriceLabs)

In this example, any length of booking is simply a sum of the nights.

12th April to 21st April (9 Nights)

12th = 54

13th = 59

14th = 52

15th = 52

16th = 52

17th = 52

18th = 52

19th = 80

20th = 77

54+59+52+52+52+52+52+80+77 = £530

If you were to use nightly pricing but for longer seasons, the same behaviour would happen.

Season 1 (1st January to 31st May) @ £150 per night

Season 2 (1st June to 18th June) @ £175 per night

Season 3 (19th June to 8th July) @ £200 per night

Season 4 (9th July to 2nd September) @ £300 per night

If we book 28th June to 12th July (14 nights), we will have the following breakdown:

11 nights @ £200 + 3 nights @ £300

2200 + 900 = £3,100

In this scenario we are always adding the nightly price for each individual night, we are not providing any discounts based on the length of stay.

Weekend Pricing

If you wish to use weekend pricing, then you must create your seasons as follows:

Season 1 - Mon to Thu

Season 2 - Fri to Sun

Season 3 - Mon to Thu

etc.....

The following example will show you how to setup your midweek and weekend pricing where you have a fixed nightly rate and no discounted for 7 nights or longer bookings.

The grid shows that each week is divided into two seasons, allowing for a unique nightly rate to be entered during the week and then a unique nightly rate used for the weekends.

If a booking overlaps the weekend and midweek then it is sum of all the nights as per nightly pricing examples above.

Weekly Pricing

Weekly pricing will work in exactly the same way as nightly pricing, in that it will take the rates from each season the booking overlaps. If the booking is less than or greater than 7 nights, iPRO will pro rata the rates and calculate the adjusted price.

14th September to 21st September (7 Nights) = £950

21st September to 28th September (7 Nights) = £820

If we book 14th to 28th September (14 nights), this is just the sum of the two weekly rates i.e. price will 950 + 820 = £1,170

Now if we were to book 17th September to 26th September, this overlaps the seasons so iPRO would have to calculate the nightly rates based on the weekly rates and then add the values together.

Season 1 = (950 / 7) * 4 = 542.86

Season 2 = (820 / 7) * 5 = 585.71

Total = 542.86 + 585.71 = £1,128.57

Nightly LOS Pricing (The nightly rates vary depending on how long you stay)

Nightly LOS Pricing is where you set your Nightly rate based on the length of stay, so for each season you would have the following rates set. In the example below we are charging 1 night at £200 and that nightly rate reduces to down to £140 if you stay for 7 nights so the price will be 7 x 140 = £980

Season 1

1 Night = 200

2 Nights = 190

3 Nights = 180

4 Nights = 170

5 Nights = 160

6 Nights = 150

7 Nights = 140

Nightly LOS Pricing With Weekend Seasons

In the following example I have created Midweek and Weekend Seasons and I want to vary my prices, so I have implemented LOS Pricing and set a default weekly price of £10,500 which means that any booking for 7 or more nights will be charged at the default rate of £1,500 per night.

Midweek rate is £1,750 per night and the weekend rate is £2,500 per night

If we were to book 18th - 21st October, the price is 2500 x 3 = £7,500

If we were to book 14th - 18th October, the price is 1750 x 4 = £7,000

If we were to book 16th - 22nd October, the price is (1750 x 2) + (2500 x 3) + (1750 x 1) = £12,750

For each season we have taken the nightly rate based on the total number of nights for the booking.

Which is why I have used the same value across the 1 to 6 nights in my setup, as shown below:

To confirm then when using LOS Pricing, iPRO will use the nightly rate from the matching number of nights input box. So if a 5 night booking we will use the nightly rate for 5 nights from each season that the booking overlaps.

Please see the examples below:

Season 1: 21st April to 24th April (Midweek)

Season 2: 25th April to 28th April (Weekend)

Season 3: 28th April to 2nd May (Midweek)

If we book 21st to 25th April (4 nights) we take the 4 night price from season 1 and multiple by 4 i.e. 1750 x 4 = £7,000

If we book 24th to 29th April (5 nights) we take the 5 night price from season 1 and season 2 and we then multiple that price by how many nights it covers within that season.

Season 1 = 1750 and there is 1 nights 24th

Season 2 = 2500 and there are 3 nights 25th to 28th April

Season 3 = 1750 and there is 1 night 28th

Price = 1750 + (2500 x 3) + 1750 = £11,000

Nightly LOS Pricing With Weekend Seasons and a discounted Sunday night

It is also possible to incentive 3 night weekend bookings so that guests stay til monday rather than having to leave early sunday morning.

In the following example we have a different rate on the weekend pricing for 2 and 3 nights.

In this example we can see that the 3 nights is reduced to 1750 rather than 2500. This means that if you check in on the Friday and stay til Monday the nightly rate is reduced to 1750 compared to the 2500.

25th April to 27th April = 2,500 + 2,500 = 5,000

25th April to 28th April = 1,750 + 1,750 + 1,750 = 5,250

However if the guest checks in on the Thursday and checks out on the Sunday, they will qualify for the 3 night rate of both seasons.

24th April to 27th April = 1,750 + 1,750 + 1,750 = 5,250

If you didn't want this to happen you would have to combine your pricing with restrictive check in days.

Short Break Supplements

Short break supplements work with Nightly and Weekly prices. You shouldn't combine LOS Pricing with Short Break Pricing.

Short break supplements are an automated solution for adding short break pricing to dynamic rates provided by PriceLabs or Beyond Pricing.

When using Nightly or Weekly seasons you can easily create short break pricing based on a % rule of the weekly price i.e

1 Night = 70% of the weekly price

2 Nights = 70% of the weekly price

3 Nights = 70% of the weekly price

4 Nights = 80% of the weekly price

5 Nights = 90% of the weekly price

6 Nights = 100% of the weekly price

These 'Short Break Supplements' can be set globally or they can be set to each individual property allowing for flexibility on the rules per property.

Short Break Supplements with Weekly Pricing

The following example shows how the price is calculated when using weekly seasons.

31st Aug to 6th Sep = £778 per week

To calculate the short break supplements we do the following calculation.

( Weekly Rate / 7 nights ) Multiply by the number of nights booked and add the Short break supplement %

2 Night Break from the 31st to 2nd Sep is 70% of the weekly value

iPRO Calculates as follows:

((778/7) x 2) + 145% = £544.60 This is the same as 778 * 0.7

4 Night Break from 31st to 4th Sep is 80% of the weekly value

iPRO Calculates as follows:

((778/7) x 4) + 40% = £622.40 This is the same as 778 * 0.8

Short Break Supplements with Nightly Dynamic Pricing

The following example shows how the price is calculated when using Nightly seasons.

5th to 12th Sep = £845 (weekly price combined)

Individual nightly prices

5th = 155

6th = 157

7th = 115

8th = 108

9th = 103

10th = 100

11th = 107

Using the season above we will calculate a 3 night short break from 5th to 8th Sep = £726

First iPRO needs to calculate the cost of the booking based on the dates 155 + 157 + 115 = 427, once we have the base price it will apply the short break supplement which in this example is a 70% supplement based on the short break being 75 % of the weekly cost

Once we have the base rate we simply add the supplement on top

427 + 70% = £725.90

Weekly Pricing + Short Breaks

** Not compatible with the iPRO Channel Manager

This is a global option that is either on or off, it is selected per property but it cannot be customised by season.

Please note that we do not sync this data to the iPRO channel manager so if you use this feature we recommend over riding your maximum stay to 7 nights so your pricing is consistent. Otherwise short break could be dramatically less than expected from sales channels such as VRBO, Airbnb, Booking.com etc..

Pro Rata Pricing Guide

Overview:

When using the Pro Rata pricing option, bookings longer than 7 nights are priced by applying a pro rata rate to the weekly price for the additional nights. This approach ensures that longer stays are priced fairly and in line with the weekly rate.

Example Pricing:

Assume the weekly rate is £1,750 and the short break price for 1 to 6 additional nights is based on the percentages provided.

7 Nights:
- Full weekly rate: £1,750
8 Nights:
- Weekly rate: £1,750
- Additional 1 night at nightly rate: £250
- Total for 8 nights: £1,750 + £250 = £2,000
9 Nights:
- Weekly rate: £1,750
- Additional 2 nights at nightly rate: £250 x 2 = £500
- Total for 9 nights: £1,750 + £500 = £2,250
10 Nights:
- Weekly rate: £1,750
- Additional 3 nights at nightly rate: £250 x 3 = £750
- Total for 10 nights: £1,750 + £750 = £2,500
11 Nights:
- Weekly rate: £1,750
- Additional 4 nights at nightly rate: £250 x 4 = £1,000
- Total for 11 nights: £1,750 + £1,000 = £2,750
12 Nights:
- Weekly rate: £1,750
- Additional 5 nights at nightly rate: £250 x 5 = £1,250
- Total for 12 nights: £1,750 + £1,250 = £3,000
13 Nights:
- Weekly rate: £1,750
- Additional 6 nights at nightly rate: £250 x 6 = £1,500
- Total for 13 nights: £1,750 + £1,500 = £3,250
14 Nights:
- Weekly rate: £1,750
- Additional 7 nights at the weekly rate of £1,750
- Total for 14 nights: £1,750 + £1,750 = £3,500

Week + Short Break Pricing

This pricing method combines the weekly rate with the short break price for any additional nights beyond a full week. Unlike the Pro Rata option, there is no pro rata calculation for 8 or 9 nights. Instead, the additional nights are charged at the short break rate.

Short break prices based on the weekly rate:

1 additional night: 70% of weekly rate = £1,750 x 70% = £1,225
2 additional nights: 75% of weekly rate = £1,750 x 75% = £1,312.50
3 additional nights: 80% of weekly rate = £1,750 x 80% = £1,400
4 additional nights: 85% of weekly rate = £1,750 x 85% = £1,487.50
5 additional nights: 90% of weekly rate = £1,750 x 90% = £1,575
6 additional nights: 95% of weekly rate = £1,750 x 95% = £1,662.50

Example Pricing:

7 Nights:
- Full weekly rate: £1,750
8 Nights:
- Weekly rate: £1,750
- Short break price for 1 additional night at 70% of weekly rate: £1,225
- Total for 8 nights: £1,750 + £1,225 = £2,975
9 Nights:
- Weekly rate: £1,750
- Short break price for 2 additional nights at 75% of weekly rate: £1,312.50
- Total for 9 nights: £1,750 + £1,312.50 = £3,062.50
10 Nights:
- Weekly rate: £1,750
- Short break price for 3 additional nights at 80% of weekly rate: £1,400
- Total for 10 nights: £1,750 + £1,400 = £3,150
11 Nights:
- Weekly rate: £1,750
- Short break price for 4 additional nights at 85% of weekly rate: £1,487.50
- Total for 11 nights: £1,750 + £1,487.50 = £3,237.50
12 Nights:
- Weekly rate: £1,750
- Short break price for 5 additional nights at 90% of weekly rate: £1,575
- Total for 12 nights: £1,750 + £1,575 = £3,325
13 Nights:
- Weekly rate: £1,750
- Short break price for 6 additional nights at 95% of weekly rate: £1,662.50
- Total for 13 nights: £1,750 + £1,662.50 = £3,412.50
14 Nights:
- Weekly rate: £1,750
- Additional 7 nights at the weekly rate of £1,750
- Total for 14 nights: £1,750 + £1,750 = £3,500

Summary:

Pro Rata Pricing: Provides a fair rate based on the weekly price for additional nights.
Week + Short Break Pricing: Uses the weekly rate for full weeks and applies the short break pricing for additional nights beyond the full weeks. For bookings extending beyond full weeks, apply the weekly rate first and then the short break pricing for any remaining nights.

Choose the pricing method that aligns best with your booking strategy and market conditions.

Custom Short Breaks

** Converted to Length of stay (LOS) when syncing with the iPRO Channel Manager

This global option, which can be toggled on or off, allows you to enter a fixed price per season for short breaks.

When using the iPRO Channel Manager, these fixed rates are converted to LOS (Length of Stay) pricing. This means we calculate a price per night based on the length of the stay.

How is the Price Calculated When It Overlaps Two Seasons?

Using iPRO's custom short break pricing, the calculation for a booking from September 12th to 15th would be:

September 12th to 13th: £635
September 13th to 15th: £1,030
Total: £1,665

How This Price Is Processed by the Sales Channel

For the same booking from September 12th to 15th, when processed through a sales channel like Airbnb, the calculation is different:

September 12th to 13th (3 nights): £1,270 total
Nightly Rate: £1,270 / 3 = £423.33
September 13th to 15th (3 nights): £1,030 total
Nightly Rate: £1,030 / 3 = £343.33

Adding these up: £423.33 + £343.33 + £343.33 = £1,109.99

Airbnb then applies a 20% markup: £1,109.99 + 20% = £1,332 (rounded up)

As you can see, because the price is based on LOS pricing for 3 nights, we use the nightly price for 3 nights from both seasons.

The first night is not based on the 1-night season price, leading to a final price that is over £300 less than what iPRO would have quoted.