Derived Rates (Parent & Child Rates) – Functionality 

Derived rates allow hotels to set up one parent rate and then create child rates that automatically calculate pricing for different guest categories (Adult, Child, Infant). This ensures consistent pricing and automatic rate calculation during reservations.

1. Creating the Parent Rate

Path:
Setup → Front Office → Rate Setup

1. Click “Add Regular Rate.”

2. Under Rate Type, select “Derived Parent Rate.”

3. Enter the Parent Rate Name (example: “Family Package Rate”).

4. Save the changes.

This parent rate acts as the base to which child category rates will be linked.

2. Creating the Child Rates

Repeat the following steps for Adult, Child, and Infant categories.

Path:
Setup → Front Office → Rate Setup

1. Click “Add Regular Rate.”

2. Under Rate Type, select “Derived Child Rate.”

3. In Parent Rate Type, choose the Parent Rate created earlier.

4. Enter the Child Rate Name (e.g., “Adult Rate”).

5. Choose the Guest Category (Adult / Child / Infant).

6. Select Weekend Surcharge if applicable.

7. Save the changes.

The Child Rates are now mathematically linked to the Parent Rate.
Whenever the Parent Rate value changes, the Child Rate values update automatically.

3. Viewing Parent & Child Rates

After setup, the Rate Setup section will display:

• Parent Rate

• All linked Child Rates (Adult / Child / Infant)

This confirms the derived rate structure is active.

4. Assigning Derived Rates to Room Types

Path:
Setup → Front Office → Room Types

1. Open a Room Type.

2. Assign the Derived Parent Rate to that room type.

3. Save the changes.

Now every reservation for that room type can use the derived rate setup.

5. How Derived Rates Work During a Reservation

1. Create a new reservation.

2. Select the dates and room type.

3. Choose the Derived Rate from the rate dropdown.

When the derived rate is selected:

The “No. of Guest” field becomes editable.

Click on “No. of Guest” and a “Derived Room Rates” dialog opens.

In the dialog:

• Enter number of Adults

• Enter number of Children

• Enter number of Infants

The system automatically:

Pulls the predefined Adult, Child, Infant rates from the Derived Child Rates
Multiplies each rate by the quantity
Calculates the total room rate for the reservation

After entering the numbers, click Save.

The reservation will now display the total derived rate amount.