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### Scenarios for Weekday and Weekend Pricing

Some properties employ business rules that require different rates for weekdays and weekends. This is because the guest profile on weekdays (often business travelers) can be different from the guest profile on weekends (often leisure travelers). In this case, each room block can have a weekday rate and a weekend rate. For properties that do not use different rates for weekdays and weekends, the average rate is always applied to each room type during an event.

This topic gives the following examples of how weekday and weekend pricing might be used. These scenarios illustrate the variances in room revenue for a property that uses different weekday and weekend pricing, and a property that uses the average rate for each day of the week. You might use weekday and weekend pricing differently, depending on your business model.

#### Applying Weekday and Weekend Pricing

A three-day event is planned, with room blocks booked for Monday, Tuesday and Wednesday. Each property defines weekdays as Monday through Friday, and weekend days as Saturday and Sunday.

Property 1 uses weekday and weekend rates, while Property 2 uses the average rate for each day of the week. Property 2 does not have weekday and weekend rates.

As Table 112 shows, for Property 1 the total room price for the three days equals \$10,000 (\$2000 plus \$6000 plus \$2000). The average weekday rate is calculated as \$10,000 divided by 40 total rooms equals \$250. The average weekend rate is null, because the event did not continue into the weekend.

The total room price is the same for Property 2, which uses an average rate regardless of the day.

Table 112. Total Room Price Calculation Using Weekend-Weekday Rate and Average Rate
Property 1 and Property 2
Monday
Tuesday
Wednesday

Quoted # Standard Rooms

10

20

10

Price per Room

200

300

200

Total Room Price per Day

2000

6000

2000

#### Applying Average-Rate Pricing

An event lasts two days and requires room blocks for Tuesday and Saturday. In this case, there are weekday and weekend rate for Property 1. Table 113 shows Property 1 with the following rates:

• Average Weekday Rate equals \$2000 divided by 10 equals \$200
• Average Weekend Rate equals \$3000 divided by 10 equals \$300
Table 113. Weekday and Weekend Rate Calculation for Property 1
Property 1
Tuesday (Weekday)
Saturday (Weekend)

Quoted # Standard Rooms

10

10

Price per Room

200

300

Total Room Price per Day

2000

3000

For Property 2, only one calculation is required to calculate the average rate for each room type as shown in the following calculation:

• Average Rate equals \$5000 divided by 20 equals \$250

In essence, weekend and weekday pricing for sleeping rooms is only weighted average pricing.