Floor Rates act as a safeguard and ensures you never price below your break-even point, especially during slow seasons. Without a floor rate, you might accept bookings that actually cost you money or aren't worth the wear and tear. Floor rates act as your guardrails, telling dynamic pricing tools such as MaxYield, RevMaxGo or Comp Set Pricing: “Never price below this, no matter what.”



Ceiling Rates act as a cap, even during high-demand periods (holidays, major events, peak season), to:

  • Prevent overpricing

  • Avoid negative guest experiences

  • Stay competitive



Refer to examples below:


FLOOR RATES
Our sample unit on the screenshot below shows that both RevMaxGO and Yielding are enabled. Since RevMaxGO will be the base rate for yielding to apply, the MaxYield Rate then determines the final rate. Occasionally, the recommended rate from RevMaxGO might be extremely low, and the yielding adjustment applied on that specific time frame might be a discount. This can lower the pricing for that unit on specific dates. The Floor Rate serves as a safeguard to prevent rates from dropping too low. For example, in the scenario below, the Floor Rate of $800 becomes the final rate because the Yielding rate is lower than the Floor Rate.


CEILING RATES
The competitor entered a rate around $75,000 per night (possible typo error) and this sky-rocketed our automatic comp set pricing. Without the ceiling rates being set, it affected our pricing which can result to a variety of errors.