Expedia Pricing Models - Everything you need to know

Follow

Expedia Pricing Models - Everything you need to know

Expedia has two pricing models for properties to choose from:

  1. Occupancy based pricing (OBP)
  2. Per-day pricing (PDP)

Both options have pros and cons, so you will need to decide which of these is the best fit for your property.

Note: These options can only be set by your Expedia Market Manager.  If you want to make a change to the Expedia pricing model, you must contact your Expedia Market Manager for assistance.  Myallocator cannot make this change for you.

Per Day Pricing Model

With this pricing model, room inventory is assigned a cost each day for a base number of occupants.

Though commonly configured for two occupants, the base number can be customized by rate plan. A single guest will always be quoted the rate for the base number of occupants, whereas guests above the base number are charged extra person fees if configured.

Example: Double Room with 2 base occupants

  • Single Guest: quoted a base double rate for each day at the property
  • Four Guests: quoted the base rate plus extra person fees for two of the occupants.

Room rates are based on the number of adults in a booking, while children are charged an extra person fee. Children are only charged an adult guest rate if there are not enough adults to fill the base occupancy for a booking. For example, a booking for one adult and two children in a hotel with per-day pricing and a base occupancy of two will only charge an extra person fee for one child.

For this pricing model, select "Per-Day Pricing" on the Channel-specific Options Screen.

 

Occupancy Based Pricing

In this pricing model, a cost is assigned to a rate plan for each room occupancy, so separate rates can be set each day for a single, double, triple, etc., making this model the most dynamic and flexible in terms of daily pricing.

A cost does not have to be assigned for every occupancy, as the following rules will then take effect:

  • Any gap in defined occupancy rates will result in the rate for the next higher occupancy being charged.  So if cost is specified for an occupancy of two but not for an occupancy of one, the price for double occupancy will be applied automatically when a guest wants to book a single.
  • Any number of guests exceeding the highest specified occupancy rate (up to the maximum occupancy allowed in the room) will be charged extra person fees.

Bear in Mind - myallocator supports the Occupancy-Based pricing Model with Expedia, but we are limited to setting the same rate for each occupant.  

For example - if you have a "2 King Suite" with the occupancy of 4, we can set the following rates:

  • 1 Occupant : $100
  • 2 Occupants: $200
  • 3 Occupants: $300
  • 4 Occupants: $400

We are NOT able to set varying rates for each occupant (e.g. $100 for 1 person, $175 for 2 people, $260 for 3 people, etc).

For this pricing model, select "Occupancy-Based Pricing" on the Channel-specific Options Screen.

 

Selling Dorms on Expedia

When selling Dorms on Expedia, you must choose which Pricing Plan you want to use.  Each pricing plan works differently as described below.

 

Option 1: Per-day pricing

This option allows you to sell the maximum amount of your dorm inventory, but results only appear when searching for a single person

Advantages

  • You can sell every single bed that is available.
  • Clearly communicates with customers what they are purchasing.
  • Best option for most Hostels
 

Disadvantages

  • The room only shows up when guests search for a single person
  • Some rate plans based on per-person pricing are not possible
  • When using Per Day Pricing, the "Single Use Rate" is not used
 

How to set it up

Example room:

  • Room type: 5-bed dorm
  • Number of rooms: 4
  • Total accommodations: 20
  1. Contact your Expedia Market Manager to set your Pricing Model to Per Day Pricing
  2. On Expedia's extranet, configure the room type to only allow 1 person to stay.
  3. The number of rooms for our example room type on Expedia would then be set to 20 (4 dorm rooms, each with 5 beds = 20 total accommodations. )
  4. Name the room on Expedia something like "1 bed in a 5-bed dorm"
  5. If the customer wants more than 1 bed, they must book the room multiple times.
  6. If there are 8 beds available for example, we set an availability of 8.
 
 

Option 2: Occupancy-based pricing

This option allows guests to book multiple people in a dorm room, but it also forces you to sell the entire dorm room in a single booking

Advantages

  • The rooms will show up when guests search rooms for multiple people
  • You can set the Single Use Rate for Private rooms
 

Disadvantages

  • The primary disadvantage is that the beds will only be bookable if you have the full number of beds available for the dorm room.
  • This option also requires you to setup the Dorm Room as a Private Room, thereby selling the entire room with each reservation (even if only one person books it).

Example: In our 5 Bed Dorm scenario, the dorm beds will only be bookable if you have all 5 beds open.  If you have even just 4 beds left, the room will be "blocked"

 

How to set it up

Example room:

  • Room type: 5-bed dorm
  • Number of rooms: 4
  • Total accommodations: 20
  1. Contact your Expedia Market Manager to set your Pricing Model to Occupancy Based Pricing
  2. On Expedia's extranet, configure the room type to have 4 rooms on Expedia, each with an occupancy of 5 people.
  3. Name the room something like "5 Bed Dorm Room".
  4. Depending on the number of beds currently available on myallocator, here is how we set the number of fully available rooms on Expedia:
    • 20 beds = 4 rooms available
    • 15 to 19 beds = 3 rooms available
    • 10 to 14 beds = 2 rooms available
    • 5 to 9 beds = 1 room available
    • 0 to 4 beds = 0 rooms available
 
 

Errors when selling Dorms with Occupancy Based Pricing

If you sell Dorm Rooms on Expedia, but have Occupancy Based Pricing setup incorrectly, you are likely to receive an error message similar to the one below:

Failed: 1133 A mapped channel room has fewer beds configured than the channel manager. Check with your channel's account manager that the number of accepted beds match for each room. Example: [201180997] on date [2016-02-05]. (#FAULT.OTA.ROOM.BEDS_INSUFFICIENT.EXAMPLE)

Why this error occurs

This error occurs when you have Occupancy Based Pricing, because myallocator is forced to send rates for each of your occupants, such as:

  • 1 Person: $100
  • 2 People: $200
  • 3 People: $300
  • 4 People: $400
  • and so on...

The problem occurs when you have Occupancy Based Pricing setup, but also have your Expedia Room set as "Single Occupancy".  Setting your dorms as Single Occupancy is required and recommended as long as you have "Per Day Pricing" setup.  However, if you have Occupancy Based Pricing, and sell your dorms as a single unit, this error will occur.

 
 

Solutions

Solution A: Change your pricing model in Expedia to Per Day Pricing

 

Changing your pricing model in Expedia to Per Day Pricing as described above will solve this issue.

If you want to make a change to the Expedia pricing model, you must contact your Expedia Market Manager for assistance.  Myallocator cannot make this change for you.

 

Solution B: Change your Expedia Dorm Rooms to be Private Rooms

If you wish to continue with Occupancy Based Pricing, you must change your Expedia Dorm Rooms to be Private Rooms as described above.  

If you want to change your dorms to Private Rooms, you must contact your Expedia Market Manager for assistance.  Myallocator cannot make this change for you.

 
 

Final Step: Setting the Pricing Model in myallocator

Once your pricing model has been chosen and set, you simply need to select the correct option in the Expedia setup page, as shown below.

  1. Click Manage
  2. Click Channels
  3. Click Expedia
  4. Click next through each screen until you come to the "Channel-specific Options" screen
  5. Choose the correct Pricing Model
    • Note: this setting must match the setting in your Expedia Extranet.
  6. Click Next
  7. Back to Overview
  8. Click Availability
  9. Click Full Refresh
  10. Click Start Refresh
 
Have more questions? Submit a Ticket

Comments