You may remember this step from the initial set up of Pace, or perhaps you have added new Rate Plans recently and know that sometimes we will ask you to confirm the exact nature of the plan.
As Pace's automatic pricing algorithms are focussed on delivering up-to-date prices for your Dynamic Segment, we need to ensure that we classify the algorithm's inputs (i.e. your reservations and rates) to the level of detail the system can interpret. We, therefore, have defined 4 different categories we use to classify rate plans and thereby incoming reservations.
The 4 Rate Plan Classifications
Dynamic ➡ Any rate plan that is dynamically priced and derived from the base rate plan should be classified as "Dynamic". Those typically include your BAR, early-bird, refundable and non-refundable rates, as well as any special plans you use for listings on OTA partners.
Group ➡ Any rate plan which is used for group business (either to track them in the PMS or price them) should be classified as "Group".
Fixed ➡ Any fixed and/or negotiated rate plans (e.g. for corporate business) should be classified as "Fixed"
Miscellaneous ➡ Any internal rate plan which is not used to sell to guests should be classified as "Miscellaneous"
How to classify new Rate Plans
To ensure that Pace has a correct understanding of your reservation data, it is important that you always ensure that rate plans are classified correctly or at all. By default, all newly imported rate plans are marked as "Unclassified". You will have to manually update these rate plans in Pace. This can be found on the Rate Plans tab from the settings on the Actions Table.
How do these classifications impact the algorithm?
By differentiating reservations between these different classifications, Pace's algorithm can determine if a reservation should be treated as a price signal for the dynamic pricing or simply as a reduction of inventory for your dynamic market segment. It also allows us to build more accurate forecasting models, as usually demand for these different "Parent Segments" differs.
Why don't we use the existing Segmentation from the PMS
Albeit, using segments would make the exercise of classifying reservations more simple (as there are typically fewer segments than rate plans), we opted for rate plans instead. This is mainly due to the reason that Segment classifications in the PMS can change over time and therefore have different meanings. As segments are typically identified through rate plans, we are therefore circumventing segments and going directly to the source. This allows us to ensure that we always have the full picture - not just moving forward, but also from your historical data.