About hurdle rates
Hurdle rates can be enabled in your Channel Manager if you are connected to IDeaS RMS. You need to enable hurdle rates for the room rate in your Channel Manager, however, hurdle rates are set up in your connected IDeaS RMS. When enabled, the room rate will receive the hurdle rate from the mapped room rate in IDeaS RMS.
Hurdle rates are thresholds set to prevent rooms from being sold when the price and stay period are not profitable, for example, they can prevent your rooms from being sold at low rates or for short stays. A hurdle rate will set the minimum value (set on a daily basis). The hurdle rate will be sent from IDeaS and your Channel Manager will translate it to a minimum length of stay (MinLOS) restriction.
For example, if the standard daily rate is 150, you could set a hurdle rate of 200. This will prevent guests from booking a one-night stay.
Note: the total value of the room rates across the dates of the stay needs to be lower than the total of the hurdle rates.
Example of hurdle rates
See the below example of how hurdle rates can be applied:
| 1 January | 2 January | 3 January | 4 January |
Hurdle rate | 200 | 180 | 0 | 170 |
Room rate | 150 | 100 | 140 | 170 |
Translated minimum length of stay MInLOS (MinLOS will be sent to channels) | 3 | 2 | 1 | 1 |
A guest cannot book a one-night stay on 1 January because the hurdle rate is greater than the room rate.
The guest also cannot book a 2 night stay because the hurdle rate for 1 January ( 200) plus the hurdle rate for 2 January (180) is still greater than the total price of the room rates (250).
The guest can book a 3 night stay from 1 January - 3 January because the total of the hurdle rates (380) is lower than the total price of the room rates (390). This booking will have a minimum length of stay (MinLOS) of 3 nights.
If the hurdle rate is less than or equal to the room rate on a given day, then the MinLOS will be set to 1. You can see this occurring on 4 Jan.
💡Note:
If the hurdle rate total does not become less than the room rate total across a 14-day period, then the MinLOS is set to 15 and a restriction of Closed to Arrival (CTA) is set on that day (if CTA is supported by your property).
Enable hurdle rates
You need to enable hurdle rates for a room rate. When enabled, the room rate will receive the hurdle rate from the mapped room rate in IDeaS.
Go to Rooms & Rates > Room types.
Click on the room rate and select Configure.
In the Hurdles tab, tick the checkbox to enable hurdles.
Click Save.
Hurdle Parents must always be mapped to IDeaS, however it is optional to map Hurdle child rates to IDeaS. This is because Hurdle child rates are limited to rates that share the same room type. Hurdle child rates inherit the calculated hurdle MinLOS values from its Hurdle Parent, and therefore do not need to receive a hurdle rate from IDeaS. If you are also connected to a PMS this means you can push the rate from the PMS but still have hurdle MinLOS controls from the hurdle parent.
💡Note:
You can have multiple Hurdle child rates that inherit the hurdle restrictions from a Hurdle parent rate.
You can only pass hurdle restrictions from Hurdle Parent to Child. A Hurdle Parent cannot have a Hurdle Parent of its own — in other words, you cannot pass hurdle restrictions from Parent to Parent in a chain of several steps.
How do I set up derived rates for hurdle rates?
To set up derived rates for hurdle rates:
Set up derived rate values directly in IDeaS.
Set rates to “manual” in your Channel Manager.
This ensures correct MinLOS calculations as the MinLos calculation will be taken from the derived values in IDeaS.
💡 If you don’t use hurdle rates, you can set up derived rates directly in your Channel Manager.