Siebel Hospitality Guide > Setting Up Pricing and Property Pricing > Function Space Pricing Administration >

Defining Function Space Threshold Pricing

Some hospitality companies only accept function space business when an event on their properties meets a required revenue amount. This profit threshold is used to qualify an event opportunity based on the event's revenue potential. If the event brings in the required threshold profit, the event can be booked by the sales team without the intervention of the revenue manager.

Thresholds are only defined for function space by day and day part. Thresholds indicate how much profit needs to be made to complete the booking. The quote profit must be compared with the threshold defined for the function space for the indicated time period. Thresholds are defined for a specific date range.

If the quote falls below the minimum threshold, the sales representative cannot change the quote status to anything higher than prospect. Any inventory being held is released after a predefined time interval.

The threshold should be calculated only when every function is associated with a function space, so that there is no partial threshold to be calculated.

Use the Property Pricing Administration screen's Threshold view to define function space threshold pricing for each day of the week and the parts of a day. The thresholds are set up for function space revenue only and do not include the sleeping room revenue.

NOTE:  You must define the day parts before you can define thresholds and use the Function Space Diary. For more information, see Defining Property Day Parts.

This task is a step in Process of Setting Up Pricing and Property Pricing.

To define a threshold and threshold values

1. From the application-level menu, choose Navigate > Site Map > Property Pricing Admin.
2. In the Properties list, select the property and click the link in the Property Name field.
3. Click the Threshold view tab.
4. In the Threshold list, add a record, and in the record click the select button in the Function Space field to choose a predefined function space.
5. Complete the remaining fields and save the record.

   The following table describes some of the fields.

   Field	Comments
   Function Space	The Function Space defined for the property.
   Exception	Indicates whether this record is the default benchmark rental or an exception to the default rental fee.
   Start Date	The date the exception is effective. If this is an exception, it is recommended that the user enter a value for this field.
   End Date	The end date of the exception. If this is an exception, it is recommended that the user enter a value for this field.
   Active	Indicates whether or not the function space pricing is available for use.

   When the Threshold record is saved, the Threshold Value list is populated with Days and Day Parts.

6. In the Threshold Value list, enter a threshold value for the Day Parts associated with each day of the week.

To define a threshold exception

1. From the application-level menu, choose Navigate > Site Map > Property Pricing Admin.
2. In the Properties list, select the property and click the link in the Property Name field.
3. Click the Threshold view tab.
4. In the Threshold list, add a record, and then, in that record, click the select button in the Function Space field to choose a predefined function space.
5. In the Threshold record, select the Exception check box, complete the remaining fields and save the record.

   When the Threshold record is saved, the Threshold Value list is populated with Days and Day Parts.

6. In the Threshold Value list, enter a threshold exception value for the Day Parts associated with the applicable day of the week.