Yield Management – Automatic Cutoffs

An automatic cutoff level can be established for each rate plan for every day of the year. Many RDP properties study their history to determine cutoffs. In periods of historically high occupancy, the rate is increased and the discount rates are cutoff.
RDP allows up to 9,999 unique rate plans, each with a different cutoff for each day of the year. The table below shows cutoffs for four rate plans for three days. In this example, the rate plan “corporate” is cutoff for 7/2/2004.

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Cutoffs can be based on occupancy percentage. In the example below the AAA rate plan is cutoff at 50% on 7/1/2004. This means when occupancy is less than 50% the AAA plan will show as available for 7/1/2004. When projected occupancy is greater than 50% the rate will not show as “cutoff” to the reservation department. The rate plan “AAA” is set to “0%” for 7/3/2004. This means the AAA rate will always show as “cutoff” to the reservation department for this day.

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