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Pricing models

Expedia currently supports three main pricing models:

Occupancy-based pricing

The occupancy-based pricing (OBP) model is a property-level pricing model that is based on the number of travelers staying in the room. Expedia Group recommends that properties define a rate for each applicable occupancy. If a rate is not defined for a given occupancy, the rate for the next higher occupancy will be charged (see below for exceptions related to children).

For example, when a rate is specified for an occupancy of two, but not for an occupancy of one, the rate for double-occupancy will be applied automatically when a traveler wants to book a stay just for one person.

Any number of guests over the highest specified occupancy rate (up to, but not exceeding, the maximum occupancy allowed for the room), will be charged extra-person fees. Extra-person fees can be configured in Partner Central, using the Product API, or using the createFeeSet mutation.

By default, children are always charged an extra child fee and do not factor in to the occupancy being charged, with one exception: the extra child fee is waived if there is a gap in the defined occupancy rates and it costs less to treat the child as an adult.

For example, if one adult and one child are booking a room on dates where a double occupancy rate is defined, but single occupancy rates are not, rather than charge a double occupancy plus the extra child fee, the extra child fee is waived for that first child.

Note: A property setting is available for properties that wish to charge children as regular occupants until the number of allowed guests exceeds the highest defined occupancy. See Property API for more details.

Per-day pricing

The per-day pricing (PDP) modelis a property-level pricing model; a room is assigned a rate each day for a base number of occupants. Though commonly configured for two occupants, the base number can be customized by rate plan in Partner Central, using the Product API, or using the createRatePlan and updateRatePlan mutations. A single traveler will always be quoted the rate for the base number of occupants, whereas travelers above that base occupancy number are charged extra-person fees if configured.

For example, a room has a price assigned each day for a base occupancy of two guests. In this case, a single traveler would be quoted a base double rate for each day at the property, while four guests would be quoted the base rate plus extra-person fees for two of the occupants.

Room rates are based on the number of adults in a booking, while children are charged an extra-person fee. Children are only charged an adult guest rate if there are not enough adults to fill the base occupancy for a booking.

For example, a booking for one adult and two children at a property with per-day pricing and a base occupancy of two will only charge an extra person fee for one child.

Day-of-arrival pricing

Day-of-arrival (DOA) pricing is an optional pricing attribute on a rate plan that can be enabled by Expedia upon request by the property, through the Product API, or using the createRatePlan and updateRatePlan mutations. With this pricing attribute, whatever day guests arrive, they are charged the price for that day on all the days that they stay at the property. To make an exception, the property can set a "rate change flag" that forces a particular rate starting on a particular day and continuing through the rest of the stay. Day-of-arrival pricing can be enabled for rate plans using any of the above pricing models (PDP or OBP) and can be enabled without the length-of-stay (LOS) model, but this is not common.

Per-day length-of-stay pricing

The per-day length-of-stay pricing (LOS) model is currently only available in conjunction with Per-Day pricing (PDP) and is also a set on the rate plan. Length-of-stay pricing allows properties to define rates for lengths of stay from 1 to 28 days, per arrival date. For each date of a year, properties can send up to 28 rates. The price guests will pay depends on the number of days they will stay at the property. Each date has a price for a 3-day stay, a 7-day stay, etc. If LOS pricing is enabled, day-of-arrival (DOA) pricing must be enabled because length-of-stay pricing is based on the traveler’s day of arrival.

minLOSDefault and maxLOSDefault can be configured using the Product API. See the RatePlan resource definition under Product API, or refer to the createRatePlan and updateRatePlan mutations. Also, note that minimum and maximum lengths of stay can be defined for each day or period with the Availability and Rates API. More specifically, the rate to be sent for each length of stay is the rate for one night. If a rate of $100 is sent for LOS=7, the base rate total for 7 nights will be 7x$100.

Expedia Group recommends that the first time a property sends rates for a specific day, they send rates for all supported lengths of stay per day. For example, for arrival on September 1st, Expedia Group should receive up to 28 different rates, for lengths of stay from 1 to 28 days, assuming the property supports 28-day stays.

Subsequent updates should only be made when the length-of-stay rates change. Example: If rates for LOS=7 and above are changing, the update message should only contain the rates for LOS=7 and above. Rates for shorter stays should be excluded since those rates will remain the same.

If a rate is not defined for a length of stay, it will not be available for sale on Expedia Group points of sale. This is true for both gaps between two defined lengths of stay or any lengths of stay after the maximum defined. For example, if, for arrival on September 1, rates for LOS 1, 3, and 5 are defined, it will not be possible for travelers to book for 2, 4, and 6 or more nights when arriving on that date.

Note: After a LOS rate is defined in the Expedia Group system, it is not possible to remove it. If necessary, properties can make use of restrictions to make previously loaded rates unavailable. Minimum and maximum LOS can be used to restrict specific length of stays or closure at room and rate levels can also be used. Restrictions are applied first when travelers attempt to book a room. Example: Even if a rate for LOS=5 is defined, it would not be possible to book it if one of the subsequent days is closed for departure, or if it is completely closed at the room or rate level.

Expedia Group recommendations

Expedia Group recommends that partners use occupancy-based pricing (OBP) because this pricing model offers the most flexible pricing solution.

Properties currently using the per-day pricing model can convert to occupancy-based pricing by requesting a migration from their Market Manager.

Note: Migration from occupancy-based pricing to per-day pricing involves a manual transfer of information which needs to be scheduled with the property’s Market Manager. In this scenario, new rate plans must be created because the Pricing Model attribute cannot be changed.

Pricing model information can be confirmed in Partner Central from the overview page, with the Product API, or using the property query.

Note: Make sure the pricing model specified when sending rate updates is the same as the one pre-configured for your property on Partner Central.

You should contact your Expedia Group Technical Relationship Manager with any questions about pricing models or potential discrepancies with your properties’ pricing models.

Pricing model comparison

The following example compares the different pricing models for a room with different numbers of guests in the reservation.

Per-day pricingOccupancy-based pricing
Data received from partner through the Availability and Rates APIRate amount = $200Rate amounts:

Occupancy 1 = $150

Occupancy 2 = $200

Occupancy 3 = undefined

Occupancy 4 = $375

Occupancy 5 = undefined
Data received from partner through Product API or Partner CentralPeople included in base rate = 2

Extra person fee for adults = $50
Extra person fee for adults = $50
1 Adult$200$150
2 Adults$200$200
3 Adults$200 + $50 = $250$375
4 Adults$200 + 2 x $50 = $300$375
5 Adults$200 + 3 x $50 = $350$375 + $50 = $425

This table illustrates how children and infants are charged in a reservation based on pricing model and number of guests, both adults and children, in the booking reservation.

Pricing modelHow are children charged?Examples
Per-day pricingChildren are charged an adult guest rate ONLY if there are not enough adults to fill the base occupancy (also referred to as people included in base rate) for a booking.

Otherwise, they will be charged whatever extra person fees are loaded for the child and infant age categories.

For example, a booking with 1 adult and 2 children on a rate plan with a base occupancy of 2, will result in 1 child being counted as the second adult and 1 child being charged the extra person fee for children.
Partner data:

Base occupancy of 2 = $200

Extra child fee = $25

1 Adult + 1 Child = $200

1 Adult + 2 Children = $200 + $25 = $225

2 Adults + 1 Child = $200 + $25 = $225

2 Adults + 2 Children = $200 + 2 x $25 = $250

1 Adult + 3 Children = $200 + 2 x $25 = $250
Occupancy-based pricingFor OBP properties, a property-level setting determines how children and infants are charged. The setting is named OBP Pricing Logic and the property can pick one of two options, as below.Partner data:

Occupancy 1 = $150

Occupancy 2 = $200

Occupancy 3 = undefined

Occupancy 4 = $350

Extra child fee = $25
Occupancy-based pricing Option 1 (from data above)Children always charged extra child fees. When this is selected, any children included in the booking will be charged an extra child fee.1 Adult + 1 Child = $150 + $25 = $175

1 Adult + 2 Children = $150 + 2 x $25 = $200

2 Adults + 1 Child = $200 + $25 = $225

2 Adults + 2 Children = $200 + 2 x $25 = $250

1 Adult + 3 Children = $150 + 3 x $25 = $225
Occupancy-based pricing Option 2 (from data above)Children charged as regular occupants; extra child fees only apply when occupancy level is undefined.

When this is selected, the property will only charge extra child fees for undefined occupancy levels and the property will charge them as adults until the number of allowed guests exceeds the highest defined occupancy.
1 Adult + 1 Child = $200

1 Adult + 2 Children = $200 + $25 = $225

2 Adults + 1 Child = $200 + $25 = $225

2 Adults + 2 Children = $350

1 Adult + 3 Children = $350