Calculator Inputs
Use the responsive input grid below. It shows three columns on large screens, two on medium screens, and one on mobile.
Pricing Curve Graph
The graph compares recommended rate and discount by arrival window. Submit the form to refresh the curve.
Example Data Table
| Scenario | Current ADR | Occupancy | Demand Index | Unsold Rooms | Competitor ADR | Suggested Discount | Suggested Rate |
|---|---|---|---|---|---|---|---|
| Quiet weekday | $180 | 58% | 0.92 | 34 | $172 | 22% | $148 |
| Balanced demand | $190 | 72% | 1.01 | 18 | $188 | 12% | $171 |
| Event weekend | $225 | 84% | 1.22 | 10 | $238 | 6% | $228 |
| Heavy cancellations | $205 | 69% | 0.97 | 27 | $198 | 18% | $175 |
Formula Used
This calculator uses a dynamic discount model, then checks margin safety and market position. The logic blends urgency, inventory pressure, pickup speed, demand level, cancellations, event impact, and competitor rate position.
| Unsold Share | Unsold Rooms ÷ Total Rooms × 100 |
|---|---|
| Dynamic Discount | Base Discount + Urgency Effect + Inventory Effect + Cancellation Effect − Pickup Effect − Demand Effect − Event Effect − Competitor Effect |
| Preliminary Rate | Current ADR × (1 − Recommended Discount ÷ 100) |
| Market Aligned Rate | (Preliminary Rate × 70%) + (Competitor ADR × 30%) |
| Margin Floor Rate | (Variable Cost + Distribution Cost) ÷ (1 − Desired Margin) |
| Final Recommended Rate | Clamped between Floor Price, Margin Floor, and Ceiling Price |
| Expected Revenue | Recommended Rate × Expected Rooms Sold × Stay Length |
| Gross Profit | (Recommended Rate − Variable Cost − Distribution Cost) × Expected Rooms Sold × Stay Length |
The expected rooms sold estimate is a practical forecast function. It is useful for pricing decisions, not a guaranteed booking outcome.
How to Use This Calculator
- Enter your current ADR, competitor rate, and rack rate.
- Add inventory details such as occupancy, unsold rooms, and total rooms.
- Enter demand conditions using pickup rate, demand index, and event premium.
- Add cost controls including variable cost, distribution cost, and desired margin.
- Define the allowed pricing guardrails with minimum discount, maximum discount, floor price, and ceiling price.
- Click Calculate Pricing to see the recommendation above the form.
- Review the graph and compare how the rate changes as arrival gets closer.
- Use the CSV and PDF buttons to export the pricing output.
FAQs
1. What does this calculator estimate?
It estimates a last minute room selling rate, suggested discount, expected rooms sold, projected revenue, gross profit, and rate movement against current ADR.
2. Why is competitor ADR included?
Competitor ADR helps align the recommendation with nearby market conditions. It prevents pricing that is too aggressive or too weak for local demand.
3. What is the demand index?
The demand index is a multiplier showing market strength. Values above 1.00 suggest stronger demand, while values below 1.00 suggest softer booking conditions.
4. Why use a floor price?
A floor price protects brand value and prevents deep discounting. It also stops recommendations that would drop below a practical operating level.
5. What is the margin floor rate?
The margin floor rate is the minimum price needed to preserve your selected profit margin after variable and distribution costs are covered.
6. Does this replace a revenue management system?
No. It is a decision-support tool for quick pricing analysis. A full revenue system may use broader forecasts, segmentation, and channel-specific optimization.
7. Can I use it for multi-night stays?
Yes. Enter the stay length in nights. Revenue and gross profit scale with the selected stay duration for the expected rooms sold.
8. Is the expected rooms sold figure guaranteed?
No. It is a modeled estimate based on price position, demand, pickup, and inventory pressure. Actual results can differ from the forecast.