For operations that are heavy into tour rentals, the traditional means of doing yield managed rates is often inadequate. Events such as NASCAR races and other sporting or cultural events may support more expensive rates even though the present anticipated utilization is low. Flex Rates and the Flex Rate Table allow a rate manager to control the net rates that will be used on reservations booked for future dates.
Flex Rates are net tour rates used on tour vouchers. The rates themselves are set up in the Edit Rental Rules and Rates program. But rather than assigning the net rate code to a tour operator's IT record (as is the case in the Net Rate Method of voucher pricing) the Flex Rate file is used instead.
- Rather than assigning a Net Rate to an IT record, a Flex Table Code is assigned.
- The Flex Rate Table has the CARS+ Rate Product Code for the net
rate that is to be used for each week for the next 12 months for each
class at each location.
- To have the out-of-voucher rate generated off the voucher Flex Rate, enter a mark up percentage in the "Gross Markup %" field on page 1 of the IT record. Also enter a start date in the "Multi Rate Start Date" field on page 2 of the IT record. (This date needs to be prior to the check out date of the rental.) When the RA is opened, the Flex Rate in effect as of the return date of the RA is used as the basis. The markup percent is calculated to generate the out-of-voucher rate.
Set Up Steps for Using Flex Rates:
- Set up Flex Rates in the Edit Rental Rules/Rates program. Flex rates must have the following characteristics:
- The first two characters of the Rate Product Code must be "FX".
- Flex Rates only have daily rates. Any other rates that you set up will be ignored.
- Set up a spreadsheet (such as Excel) to manage the Flex Rate Table.
- Import the flex tour rate table spreadsheet as a csv file using the program Import Flex Rates.
- Finally, assign to IT records the Flex Table Code that should be used for looking up their rates.
Once the IT number is entered in the voucher record, the Flex Table code from the IT record, the pickup date, location, and class are used to read the Flex Rate table and find the rate to use for the reservation.
Reservations longer than 35 days:Obviously, rates may vary significantly from week to week. That is the whole idea behind Flex Rates. As is the case in all other rentals situations, the renter usually gets the rate that was effective as of the open date of the rental for the whole rental period. Therefore, on a two week rental, even though the Flex Rate for the second week is considerably higher than the rate for the first week, both weeks are charged at the single rate that was effective as of the starting date. The exceptions to this general rule are:
- Seasonal Rates on retail rentals (see Edit Rental Rules and Rates)
- Long Term rentals on a Flex Rate voucher. Long term rentals are defined as those that are 35 days or longer. When a reservation is longer than 35 days, additional logic is used to determine the rate for the voucher. An average is computed using the following steps:
- The flex rate is found for the pick up date and multiplied by 35 days.
- The flex rate is then found that will be effective on the 36th day of the rental. That daily rate is multiplied by the number of days beyond the 35th day.
- These two estimates are added together and the sum is divided by the total number of reserved days to arrive at an averaged daily rate.
- Finally, all Flex Rates on file in the Rates file are read to find one whose daily rate is the closest to the averaged rate (equal to or lower). That Flex Rate Rule record is then used for the entire rental.