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Updating and Reducing the Negotiation Floor Rate

In some cases, the sales representative submits a quote evaluation to the revenue manager to request an override of the established negotiation floor rate. This situation typically occurs when the customer is bringing in a great deal of function space revenue and asks for a discount on sleeping rooms.

The sales representative first attempts to update the standard negotiation rate for the sleeping rooms. If the new rate is less than the established negotiation floor rate, the sales representative is prevented from completing the rate update. The revenue manager can, however, reduce the negotiation floor for the quote.

Revenue managers may decide that a profit and revenue advantage exists if the customer is given a rate that is lower than the established negotiation floor for a particular booking or event. By modifying the established negotiation floor rate, the revenue manager can set a new negotiation floor that is not constrained by the established price.

For example, a customer plans to spend a lot of money on catering products for his event and would like a discount on sleeping rooms. The property's benchmark rate for a sleeping room is $100 and the negotiation floor is set at $100. The sales representative wants to offer the customer a sleeping room rate of $90 dollars as an incentive for future business. The sales representative makes the recommendation in the comments field of the quote, and sends the quote to the revenue manager for evaluation.

After reviewing the quote, if the revenue manager agrees that the $90 rate is justified, the revenue manager changes the negotiation floor rate to $90.

Updating the Existing Negotiation Rate (Sales Representative)

Perform the following procedure to update the negotiation rate for a room block. This procedure assumes that the room block records have already been created for the quote.

This task is a step in Process of Revenue Management.

To update the negotiation rate

1. Navigate to the Quotes screen > Quotes List view.
2. In the Quotes list, query for the quote record.
3. In the Quote record, click the link in the Quote # field.
4. From the Room Blocks form, scroll down and click the Negotiation Rates view tab.
5. In the Negotiation Rates list, click Calculate Rates.

   A new record appears in the Negotiation Rates list.

6. In the new record, update the value in the Negotiation Rate field.

   If the proposed negotiation rate is lower than the negotiation floor rate, an error message appears when the user attempts to save the Negotiation Rate record.

Modifying the Negotiation Floor Rate (Revenue Manager)

When the quoted negotiation rate for a room block is lower than the property's established negotiation floor rate, the revenue manager must modify the existing negotiation floor rate so that the sales representative can successfully apply a discounted rate.

To modify the negotiation floor rate

1. Navigate to the Quotes screen > List view.
2. In the Quotes list, query for the quote record.
3. In the Quote record, click the link in the Quote # field.
4. From the Room Blocks form, scroll down and click the Negotiation Rates - Manager view tab.
5. In the Negotiation Rates - Manager list, modify values in the Avg Floor and Weekend Floor fields.

After the revenue manager has modified the negotiation floor rates, the sales representative can set the negotiation rate for the room block to a value greater than or equal to the updated Avg Floor or the Weekend Floor rates.