[NEW!] Hotel Configuration & Use Of Last Room Value (LRV)

Hotels are always seeking smarter ways to maximize revenue while keeping the booking process simple for guests. Last Room Value (LRV) is a value-based control designed by IDeaS RMS to help hoteliers achieve just that. Below is an overview of how LRV works, how it’s configured in Stayntouch PMS, and what it means for day-to-day operations.

TABLE OF CONTENTS

Setting Up Hotel Rates For LRV Testing
How LRV Works
Configuration In Stayntouch PMS
Key Data Points Behind The Scenes
Hurdle Logic & Visibility Of Rates
What Guests See
Promotions and Multi-Night Stays
Integration and Restrictions
Summary

Setting Up Hotel Rates For LRV Testing

In the development environment, hotel rates are configured in ascending order to make it easy to identify which rates belong to which room types. For example:

Single Room – $100
Double Room – $120
Suite – $140

These incremental price differences help staff quickly spot the relationship between room types and rates when making reservations.

How LRV Works

Unlike traditional rate strategies, where the BAR (Best Available Rate) is fixed, LRV uses a value-based control and market data to determine the most profitable selling point for each room.

Hurdle Price: LRV sets a minimum threshold, called a hurdle. Any rate lower than this threshold will not be offered.
Revenue Focus: This ensures that every room sold contributes to higher revenue, especially as availability decreases.

Configuration In Stayntouch PMS

Within Stayntouch Admin, a Stayntouch team member will need to enable the IDeaS LRV functionality for the property.

Once this is enabled, Hotel Admin users can assign the relevant users the Update Yieldable Status permission from Settings > Hotel & Staff > Permissions.

Please note, when LRV is enabled, the DEFAULT RATE DISPLAY option from Settings > Reservations > Reservation Settings will always be set as By Room Type and cannot be changed, because everything through LRV is classified by room type.

Additionally, a new Yieldable Rates section will appear via Settings > Rates, where users can make mass updates to rates.

Alternatively, from Settings > Rates > Rates, users can toggle individual rates as YIELDABLE from the full list of rates as well as from the individual rate, provided they are:

Non-group rates.
In the hotel’s default currency.

Key Data Points Behind The Scenes

LRV updates rates automatically by receiving data overlays four times a day. Several important terms are used:

Ceiling: The maximum number of rooms of a type available.
Max Sold: Allows for planned overbooking (e.g., when upgrades are expected).
Counters: Track booked rooms, cancellations, and no-shows.
Upsold: Indicates higher-value sales.
Overbooking: Planned overbooking of rooms.

Hurdle Logic & Visibility Of Rates

Rates shown to guests depend on the hurdle logic:

Each subsequent booking adds a delta (increment) to the hurdle price until the ceiling is reached.
After that, all rooms sell at the ceiling price.
If the hurdle is higher than a given rate, those rates will not appear.

Currently, hurdle amounts are not displayed to users, but future updates may add this feature.

What Guests See

Only rates above the hurdle are displayed.
Rates are based on room revenue only, so add-ons and taxes can reduce the visible price.
Guests may not see all possible rates, but users with override permissions can still access and book them if needed.

Promotions and Multi-Night Stays

Promotions: Even discounted promo rates must remain above the hurdle to display.
Multi-Night Reservations: The hurdle becomes the average of daily hurdles. For multiple rooms, the initial rate applies up to the ceiling, then higher rates apply for additional rooms.

Integration and Restrictions

LRV cannot run at the same time as Stayntouch Rate Strategy or IDeaS’ Minimum Length of Stay rules.
Activating LRV requires clearing any existing restrictions—a process handled internally by Stayntouch Customer Support in coordination with IDeaS.

Summary

LRV helps hotels maximize revenue by ensuring no room is sold below its optimal value. While setup requires some configuration, the system automates much of the heavy lifting, balancing guest visibility with profitability.

LRV represents a step forward from traditional rate strategies, offering a smarter, valued-based control approach to hotel pricing.