A rate plan is a structured pricing package offered to guests, outlining the cost and conditions associated with booking a reservation. You can combine a rate plan with other revenue management tools, which are designed to optimize your rates and maximize your occupancy.
A rate plan always includes a cancellation policy and a cancellation fee, defining the penalty a guest will have to pay for canceling their reservation within a specified time before check-in. In addition, you can add meal plans, price adjustments and booking restrictions to the plan. When adding the latter, the rate plan will become available only when a reservation meets the specified conditions.
For example, you can offer a 10% price reduction for a guest booking 30 days or more before their check-in date, with free cancellation up to one day before check-in, and a breakfast included. Cancellations after that will include a penalty of 50% of the total reservation price. This rate plan will only be visible to a guest searching for listings with check-in date 30 or more days into the future.
Choosing a rate plan or a cancellation policy
Depending on the booking channel, you can have a rate plan or a standalone cancellation policy for your listing. A standalone cancellation policy includes only cancellation terms, without meals, price adjustments, or booking restrictions.
Some channels - such as Airbnb and Vrbo - only sync with cancellation policies, while others work with either rate plans or cancellation policies.
You can choose between a rate plan and a standalone cancellation policy for listings connected to the following booking channels:
- Booking.com
- Expedia
- Direct integration sources & Google Vacation Rentals (“Online booking solutions”)
- Manual reservations
Trip.com requires a rate plan to connect a listing. For all other channels, you can only set a standalone cancellation policy.
Consider the following when deciding between a rate plan and a standalone cancellation policy:
- While you can apply multiple rate plans for each listing, a listing can have only one standalone cancellation policy.
- Rate plans can be updated in bulk, while cancellation policies can only be updated for each listing individually.
You can have distinctive rate plans and cancellation policies configured for each channel. For example, you can have a strict cancellation policy for Airbnb, a rate plan for Booking.com, and a moderate cancellation policy for Vrbo.
Whether a cancellation policy is part of a rate plan or a standalone, it is required to make a listing sellable and bookable in a booking channel. If you have a rate plan with specified availability restrictions, the plan will only become available for booking under these terms. Dates without a cancellation policy cannot be booked. Also, a rate plan will only be visible to the guest if the entire reservation is within the availability period of the rate plan.
Create several rate plans to cover more booking options. To make sure that your listing is always sellable, we recommend having at least one rate plan without availability settings.
For example: If the listing’s default minimum nights is three and the listing has only one rate plan with a minimum of ten nights, the listing will only be sellable for a reservation of ten nights or more. But, if you add an additional rate plan without booking restrictions, reservations for three nights or more will be possible.
Switching between a cancellation policy and a rate plan
There is no option to switch from a rate plan to a cancellation policy in the Guesty dashboard, and this should not be attempted. Stop selling a rate plan will make the listing unsellable under the settings configured in the rate plan, and adding a cancellation policy won't make the listing sellable again.
You can switch, however, from a cancellation policy to a rate plan. Edit the rate plan, and assign the listing to it. Once the listing is assigned, the rate plan will automatically replace the cancellation policy. Follow the instructions in "Edit a rate plan" below.
Where to set up a rate plan
Booking.com, Expedia and Trip.com
Assign a rate plan to a listing while connecting it to either of these channels. Alternatively, create a rate plan first, using the instructions below, and assign it to the relevant listing. The rate plan will sync to the booking channel once you connect the listing to it.
Direct integration sources
Create and assign a rate plan to listings before adding them to the Booking Engine (Booking Website for Lite users) or the Booking Engine API.
Manual reservations
Create a rate plan first. If more than one rate plan is assigned to the listing, select the desired one while creating the reservation. If only one rate plan is set, it will be applied automatically.
How a rate plan works
Adjustments made by a rate plan to a listing’s price per night or minimum nights per stay won’t be reflected in the calendar, as different rate plans can be selected by the guest. Rate plan adjustments to the price per night will be reflected in the reservation’s accommodation fare (after a plan is selected). The minimum number of nights you define in a rate plan will override the listing’s default minimum nights.
Follow the instructions below to create a rate plan, temporarily stop or return selling a rate plan, or permanently archive it.
Create a rate plan
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click the mode selector and select Growth mode.
- Click Revenue management and select Rate plan.
- In the top-right corner, click New rate plan.
- Fill in the information in each section:
- The rate plan name
- Cancellation policy and cancellation fee
- Include a meal plan (optional)
- Price adjustment (optional).
Rate plans are configured in USD, even if your listing is set with a different currency.
- Availability settings (optional):
- Booking window: Define how far into the future the rate plan can be used. For example: A rate plan can be used for any reservation with a check-in date in the next 6 months.
- Advance notice: Define how many days before check-in the rate plan can be used. For example: A rate plan can only be used if the reservation was made at least 3 days before check-in.
- Minimum/maximum nights: Define the minimum and maximum nights a guest needs to book to be able to select this rate plan.
- Availability range: Choose whether to restrict the plan to a limited date range or for specific days of the week, or to apply it without a time limit. You can exclude specific dates on both options (up to 30 days).
- Assign listings
Once a rate plan is assigned to a listing, you won’t be able to manage the cancellation policy as a standalone.
- Select booking channels
- Click Activate rate plan.
Edit a rate plan
You can edit an existing rate plan to assign new listings or update the meal plan, for example. Follow the instructions below.
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click the mode selector and select Growth mode.
- Click Revenue management and select Rate plan.
- Find the rate plan you want to edit and click
at the right end of the row. - Select Edit rate plan.
Make the relevant changes. You can skip to the section you want to edit by clicking the relevant pencil icon.
- In the top-right corner, click Save changes, and then click it again in the pop-up.
Stop-sell, start-sell, or archive a rate plan
Stop selling a rate plan if it is not relevant right now but you intend to use it in the future, or start selling a stopped rate plan. If the rate plan is no longer relevant, and you do not intend to use it in the future, archive it.
Archiving a rate plan cannot be undone. Ensure you have another rate plan to cover the availability settings of the plan you’re archiving. Otherwise, the listings will stop being sellable in these settings.
Step by step:
- Follow steps 1-3 above.
- Find the rate plan you want to update and click at the right end of the row.
- Select Stop-sell rate plan, Start-sell rate plan, or Archive rate plan.
- In the pop-up, read the information and click Yes, stop-sell, Yes, start selling, or Archive rate plan.
The rate plan will become bookable or unbookable on your booking channels.