Understanding pricing and pricing tools in Guesty

Guesty’s pricing tools help you maximize income and make your listing stand out in booking channels. This article explains how these tools, including third-party tools, work together to optimize your rates.

These tools can also be utilized to control when a listing can be booked.

How pricing works in Guesty

Accommodation fare is the foundation of the total price for a reservation. By default, it is calculated based on the listing's base price, multiplied by the number of reserved dates. When you adjust this price using a pricing tool, it’s referred to as the "nightly rate" or "price per night" hereafter.

Each night can have a different price due to the adjustments made by various tools, except for weekly or monthly discounts, which apply to the overall price.

Note:

Adjustments can't reduce the price per night below $10 (or equivalent in other currencies); otherwise, they won't be applied.

Layering adjustment tools

The available tools can interact in the following ways:

  • Tools at the same level may override each other.
  • Higher-level tools are applied in addition to (“on top of”) adjustments by lower-level tools.

After applying all adjustments, the updated accommodation fare is displayed in the guest folio. Non-accommodation fare components are shown on separate line items in the guest’s invoice (folio), with some exceptions.

Additional costs

Other costs can be added and calculated based on the accommodation fare, including:

Beta users can include an additional fee in the accommodation fare.

Note:

Channel commission can be added to the reservation total payout or just to the accommodation fare, fees, and taxes.

Accommodation fare calculation layers

Let’s explore how pricing tools affect the calculation of the accommodation fare. 

First layer
Second layer
Third layer
Fourth layer
Fifth layer
"On top" of the accommodation fare 

First layer: Base price 

Layer information

The listing's base price is the price per night if no other tools are used. You can set different base prices for weekdays and weekends. The base price is visible in the calendar unless overridden by a higher-level tool.

When importing a listing from Airbnb, the listing's base price is synced to Guesty.

Second layer: Calendar rates

Layer information

This layer includes tools that affect the price per night in the calendar. If no second-layer tools are used, the calendar rates reflect the base price.

When importing a listing from Airbnb, calendar prices are imported to Guesty and reflected in the calendar (similar to manual override via the calendar).

Manual adjustments via the calendar

You can manually adjust the price per night via the calendar for specific dates without changing the default base price. Adjustments are immediately reflected in the calendar.

Third-party tool adjustments to the price per night are also considered manual adjustments via the calendar. We recommend not using manual adjustments and Third-party tools together, as they may conflict.

You can use a rate strategy to override manual adjustments (and third-party tools' adjustments) to the price per night. 

Manual adjustments via the calendar (including third-party tools' adjustments) sync with GPO and won't get overridden by it.

When manually adjusting the price per night, you can decide whether to override rate strategy adjustments. As long as the "Override rate strategy" box is checked, rate strategy rules won't alter the price per night. 

Example:

The base price is $60. 

The price per night for 23 May is adjusted by a rate strategy to $66. 

Later, the price is manually adjusted via the calendar to $68. 

The manual adjustment overrides the rate strategy adjustment, and the nightly rate is now $68.

To deactivate the override, uncheck the box or use a rate strategy.

Higher-level tools, including rate plans, markups, markdowns, and discounts, can be applied "on top" of manual adjustments.

Example:

A rate plan adjustment of +5% applies to the manually adjusted price for 23 May (68$), changing it to $71.40.

Guesty PriceOptimizer 

Guesty PriceOptimizer (GPO) is a data-driven, machine-learning tool that provides recommendations for your listings' nightly rates based on different time intervals. Our interactive software considers market trends to offer the best-suggested prices.

Ensure you make any adjustments to the price per night directly via the GPO settings.

Avoid using GPO with a rate strategy, as GPO overrides the latter adjustments when the data is updated every 24 hours.

Manual adjustments via the calendar (including adjustments via third-party pricing tools) sync with GPO and won't get overridden by it.

When deactivating GPO, the price per night will revert to the base price.

Higher-level tools can be combined with GPO.

Rate strategy

A rate strategy can adjust the price per night. You can set one-time or recurring rules, and apply them to defined periods or specific conditions (e.g., when there is upcoming availability or for short stays).

Set a minimum and maximum limit to prevent the rate strategy from altering the price per night below or above a specified limit.

After a rule is activated, the adjusted base price is reflected in the calendar. Access the “Pricing” tab on the relevant property page to check the assigned rate strategy.

A listing can only be assigned to one rate strategy at a time. To switch a listing’s rate strategy, unassign it from the current plan before assigning it to a new one.

Note that when unassigning a listing from a rate strategy, the listing's price per night will revert to the base price.

Multiple rate strategy rules are set to adjust a nightly rate

Multiple pricing rules can overlap within the same rate strategy. Learn how multiple rate strategy rules work together.

Overriding previous adjustments by a rate strategy

When assigning a rate strategy to a listing, it only applies to dates where the nightly rate hasn’t been adjusted manually via the calendar (or by a third-party tool).

You can override manual adjustments made to the base price when applying a new strategy, or when a listing is already assigned to a rate strategy.

You can use the same process to revert the price per night to the listing's base price. Remember, this is a one-time action; future adjustments by other tools are still possible.

Overrides apply to manual adjustments made via the calendar and adjustments made by third-party tools. Also, GPO adjustments can get overridden once, but since GPO updates the listing's price per night every 24 hours, we recommend not combining a rate strategy with GPO.

Higher-level tools can be combined with rate strategy rules.

Example:

A listing’s base price is $60.

You manually change it to $63 in May 2024. 

You then assigned the listing to a rate strategy, with the following rule applied: 

Between May 21, 2024, and May 25, 2024, increase the base price by 10%. 

If you override previous manual adjustments to the base price, the updated nightly rate for May 21 - May 25 dates will be adjusted to $66. Otherwise, the nightly rate will remain $63.

Third-party pricing tools

Third-party tools can adjust a listing's pricing, and these changes are reflected in the calendar.

Third-party changes are considered manual adjustments via the calendar. Avoid using third-party tools alongside manual adjustments, as they can override one another.

If you disconnect from a third-party pricing tool, the prices don't automatically revert to the default base price; instead, they will remain as currently set. You can adjust the nightly rate to the desired values.

You can revert the nightly rates to the base price and the minimum nights to the default setup by using a rate strategy to override updates from a third-party tool.

GPO will sync—but not override—pricing adjustments from third-party tools. If you use a third-party tool with a rate strategy, those adjustments are considered manual adjustments via the calendar. You can override manual adjustments with a rate strategy, or vice versa.

Back to the top

Third layer: Rate plans

Layer information

A rate plan combines a listing’s cancellation policy with other optional components, including:

  • Meal plans
  • Pricing rules
  • Minimum or maximum night rules
  • Availability restrictions

Cancellation policies

Cancellation policies can either be part of a rate plan or standalone.

When a cancellation policy is standalone, it can't have availability restrictions. Learn more about the differences between a rate plan and a cancellation policy.

Booking and visibility

Whether part of a rate plan or standalone, a cancellation policy is required for a listing to be sellable and bookable on a booking channel.

If you have a rate plan with specified availability restrictions, it will only be available for booking under those terms. Reservations that don't meet the rate plan's restrictions can't be booked.

A rate plan is only visible to guests if the entire reservation's dates are within the availability period of the rate plan. 

Activation of rate plans

If you set a single rate plan, it activates by default when its availability restrictions are met (if set), for the specific channel it applies to.

When applying multiple rate plans, guests can choose the one they prefer if their availability restrictions are met.

For manual reservations, select the desired rate plan during reservation creation.

The rate plan applies specifically to a reservation and doesn't impact the listing's overall settings or pricing and minimum nights in the Multi-Calendar.

Example:

You can create two rate plans for all Booking.com listings:

  • One plan with no restrictions.
  • Another plan with a 5% price increase per night, also with no specified date range. 

If a guest selects the unrestricted rate plan, the price per night and minimum nights are according to the calendar rates and minimum nights. 

If they choose the restricted rate plan, the price per night for that reservation is adjusted by multiplying the calendar rate by 1.05 (X*1.05). 

The calendar rates and minimum nights remain unchanged, allowing different reservations to be booked with different rate plans.

Using rate plans with other tools

Rate plans can be used with any higher or lower-layer tools.

If the price per night was adjusted using a second-layer tool, that adjustment serves as the basis for the rate plan's “on top” calculation.

Adjustments made by a rate plan (or any other higher-level tools) aren’t reflected in the calendar but are integrated into the specific reservation’s accommodation fare.

Example:

A listing’s base price is $60. 

A rate strategy rule is applied for certain dates, increasing the price per night by 10%. 

Additionally, a rate plan is set for a +$20 increase with no date range limitation.

In this case, the rate strategy adjusts the price first, then the rate plan is applied. The final price per night will be calculated as follows: The price per night will be $86 (i.e., $60 + 10% + $20).

Price adjustments in a rate plan are applied on top of the calendar values (which can come from the first or second layers) and are visible to guests when making inquiries on the booking channels.

Regarding availability rules, such as minimum nights and advance notice, the settings in the rate plan take precedence over those in the calendar (which can come from the first or second layers) and listing settings.

Example:

If the calendar indicates a minimum night requirement of 2, but the rate plan specifies 3, that date will be available for a 3-night stay. 

To ensure the calendar and listing availability rules take precedence, leave the rate plan's availability rules undefined.

Learn how rate plans interact with promotions for Booking.com reservations.

Back to the top

Fourth layer: Markups and markdowns

Layer information

Markups and markdowns are tools you can use to adjust prices to compensate for a booking channel commission fee.

Guesty automatically rounds up the price following any markup or markdown adjustment.

Example:

If the calculated accommodation fare is $79.20 after a markup is applied, it will be rounded to $80. 

Note:

Weekly or monthly discounts are calculated based on the rounded price.

Fifth layer: Weekly and monthly discounts

Layer information

Weekly and monthly discounts are set per listing and are synced with:

Discounts are embedded in the accommodation fare.

These discounts are the final adjustment layer applied to the accommodation fare, meaning the accommodation fare won't be rounded after a discount is applied.

"On top" price reductions

Layer information

Promotions and coupons can be applied on top of the accommodation fare, and when creating a manual reservation, you can decide not to apply them.

In most cases, an applied promotion or coupon is displayed on a separate line item in the guest folio (invoice).

Learn how promotions and discounts interact with one another, with weekly and monthly discounts, and rate plans

Example:

Suppose you create a manual reservation that includes both a coupon and a promotion:

  • You apply a promotion named “Long booking” offering a 10% discount.
  • You also apply a coupon named “Fredtest 12 months” offering a 12% discount. 

Both the promotion and the coupon will appear as separate line items in the reservation creation widget. After the reservation is created, these discounts will be listed separately on the guest invoice.

Back to the top

How to calculate multi-layer pricing adjustments

Use the following example to understand the hierarchy between different pricing tools when they are used together.

Example

A listing’s base price is $100. 

The following adjustments apply:

  • A rate strategy decreases the base price by $5 for the following dates: 26-31 May 2024.
  • A rate plan is set to decrease the nightly rate by $17 with no date limit.
  • A markup of 5% is set.
  • A weekly discount is applied, giving a 9% discount per stay.

Screnario 1: 01/06 - 08/06

  1. Rate plan: 100-17=83
  2. Markup: 83*1.05=87.15 >> 88 (rounded)
  3. Total for 7 nights: 88*7=616
  4. Weekly discount: 616*0.91=560.56

Screnario 2: 27/05 - 01/06

  1. Rate strategy: 100-5=95
  2. Rate plan: 95-17=78
  3. Markup: 78*1.05=81.9 >> 82 (rounded)
  4. Total for 5 nights: 82*5=409.5 >> 410 (rounded)

Screnario 3: 26/05 - 02/06

For the first 6 nights from 26/05 to 01/06:

  1. Rate strategy: 100-5=95
  2. Rate plan: 95-17=78
  3. Markup: 78*1.05=81.9 >> 82 (rounded)
  4. Total for 6 nights: 82*6=492

For 02/06:

  1. Rate plan: 100-17=83
  2. Markup: 83*1.05=87.15 >> 88 (rounded)
  3. Total for 1 night: 88

Combined total:

  1. Weekly discount: *0.91=527.8

Screnario 4: 04/06 - 08/06

  1. Rate plan: 100-17=83
  2. Markup: 83*1.05=87.15 >> 88 (rounded)
  3. Total for 4 nights: 88*4=352

Screnario 5: 27/05 - 29/05

  1. Rate strategy: 100-5=95
  2. Rate plan: 95-17=78
  3. Markup: 78*1.05=81.9 >> 82 (rounded)
  4. Total for 2 nights: 82*2=164

Back to the top

Was this article helpful?
0 out of 0 found this helpful