The rate modification factor is a multiplier that Mews applies to the rates it sends to a specific channel. If you want to sell at a slightly higher price on one channel to cover its commission, or at a lower price on a strategic channel to drive volume, this is how you do it, without editing your Mews rates.

 

You set the rate modification factor as part of the channel settings for each channel. The factor applies to every rate sent to that channel, and only that channel. Your Mews rates and other channels are unaffected.

 

In this article, you can learn about:

• What the rate modification factor does

• When to use it

• How the math works

• Where to set it

• Cautions before setting a value

• What to do next

 

What the rate modification factor does

The rate modification factor is a number that Mews multiplies your rate by before sending it to a specific channel. A factor of 1.0 means the rate goes to the channel unchanged. A factor above 1.0 sends a higher rate. A factor below 1.0 sends a lower rate.

 

The factor is set per channel. You can use different factors on different channels, or leave a channel at 1.0 to send your Mews rates unchanged.

 

When to use it

You might use the rate modification factor to:

• Cover a channel's commission. If a channel charges 15% commission, setting a factor above 1.0 helps you protect your net average daily rate on that channel.

• Reflect a channel's audience. If a channel reaches a segment willing to pay more, a factor above 1.0 lets you capture the premium without changing your Mews rates.

• Drive volume on a strategic channel. If you want to grow bookings on a specific channel, a factor below 1.0 sends a lower rate to it, without affecting your other channels.

 

You do not have to use the rate modification factor. If you want your Mews rates to go to every channel unchanged, leave the factor at 1.0.

 

How the math works

Mews multiplies your rate by the factor to get the rate it sends to the channel.

 

For example, if your Mews rate is €100:

• A factor of 1.0 sends €100 to the channel.

• A factor of 1.1 sends €110 to the channel (10% higher).

• A factor of 1.25 sends €125 to the channel (25% higher).

• A factor of 0.95 sends €95 to the channel (5% lower).

 

The factor applies to every rate you send to the channel, including base rates, dependent rates, and rate plans, and applies at the moment Mews sends the rate to the channel. Restrictions and other configuration are unaffected.

 

Where to set it

Set the rate modification factor in the channel's settings:

1. In Mews, in the side navigation menu, click Revenue > Tools > Channels.

2. Select the channel you want to configure.

3. Open the channel settings.

4. Set the Rate modification factor to the value you want.

5. Save the setting.

 

The factor takes effect the next time Mews sends rates to the channel.

 

Cautions before setting a value

Before you set a rate modification factor above or below 1.0, consider the following:

• Price parity clauses in your channel contracts. Some online travel agencies require your rates on their channel to match your direct rates or your rates on other channels. Setting a factor above 1.0 can put you at risk of breaching a parity clause. Check your contracts with each channel before setting a value above 1.0.

• Impact on your channel commissions and Channel Performance metrics. A higher rate sent to a channel changes your average daily rate on that channel and, if the commission is calculated as a percentage, the commission you pay per booking. Review your Channel Performance dashboard after changing the factor to see the effect.

• Consistency with your revenue management strategy. If you use Mews Revenue Management System to set rates, a rate modification factor on top of RMS-driven rates changes what actually reaches the channel. Make sure this is deliberate.

 

What to do next

To use the rate modification factor:

1. Review your channel contracts and revenue strategy, and decide whether a factor above or below 1.0 fits your goals for each channel.

2. Set the factor for each channel in Revenue > Tools > Channels.

3. Once the factor is applied, watch the impact on your bookings and revenue in the Channel Performance dashboard.

 

With the rate modification factor set thoughtfully, you can align what you send to each channel with your revenue strategy, without editing your Mews rates or juggling separate rate plans per channel.