How to Determine Your Rate Bounds (Floors & Ceilings)

Rate bounds—your floor and ceiling—define the range in which TakeUp’s optimization engine can test rates. Setting them thoughtfully is one of the most important steps in giving the system enough flexibility to find revenue-maximizing opportunities while still staying aligned with your property’s brand and comfort levels.

Think of bounds as defining the “sandbox.” You decide how wide or narrow that sandbox is.

1. What Rate Bounds Do

The lower bound (floor) protects your minimum acceptable rate.
The upper bound (ceiling) prevents pricing from going above what’s reasonable for your property or market.
Rates generated by TakeUp will always fall within these limits; the model selects the best-performing price based on demand signals, your booking engine behavior, and market indicators.

Bounds do not set the rate—they set the range from which the system can choose.

2. Start With Monthly Bounds

Monthly bounds should reflect:

Historical performance and seasonality
Property positioning and price identity
Market expectations and willingness to pay
Comfort with risk and how aggressively you want the system to test

Most properties find it helpful to begin with seasonal or month-specific bounds, then adjust as they observe how the system behaves in different demand environments.

3. Use Pace Health to Know When to Adjust Bounds

The Pace Health zones (Ahead, On Track, Underwatch) provide guidance:

Ahead: If dates are performing strongly and consistently hitting the ceiling, consider raising ceilings to allow more upside.
On Track: If pacing aligns with expectations, bounds are likely appropriate as-is.
Underwatch: If many dates are stuck at the floor and demand remains slow, lowering the floor may help the system test additional price points to stimulate bookings if there is price sensitivity.

In essence:

Strong dates sitting at ceilings = possible ceiling increase
Soft dates sitting at floors = possible floor decrease

4. When to Widen or Narrow Your Bounds

Widen bounds when:

You see rates frequently resting at the floor or ceiling
You want to give the system more freedom to test both higher and lower prices
Uncertain or shifting demand warrants additional experimentation

Narrow bounds when:

You want more predictable rate behavior
You want tighter rate consistency between days
You know from experience that certain price extremes are not viable

Widening offers more discovery; narrowing tightens control.

5. Use Daily Custom Bounds for Exceptions

Daily custom bounds are best for:

Holidays or peak events
One-off anomalies or special pricing situations
Dates where you have a clear minimum acceptable rate
Adjusting floors or ceilings without altering an entire month

They allow precise control without removing dynamic pricing for the rest of the calendar.

6. When to Revisit Bounds

Review bounds when:

Pace health meaningfully changes
Booking patterns shift seasonally
Rates are consistently stuck at the minimum or maximum
Upcoming events or market changes require rethinking price positioning
You gain new insight into guest willingness to pay

Bounds should evolve as your market and strategy evolve—they are not meant to be set once and forgotten.

7. Key Principles to Guide Bound Setting

Here’s the distilled strategic guidance:

Start by defining what “too low” and “too high” mean for your business in a given season.
Use monthly bounds for broad seasonal strategy; use daily bounds for precise control.
Let performance data guide changes—not instinct alone. If you see floors or ceilings being hit frequently, it's a signal.
Give the system room to learn. Slightly wider bounds often lead to healthier revenue outcomes because the model can test meaningful variations.
Adjust thoughtfully and incrementally. You don’t need drastic changes; even modest shifts can unlock better performance.
Reassess bounds at natural checkpoints (season changes, post-event periods, or during strategy reviews).

The overall goal is to create a pricing range that protects your brand and revenue targets while giving TakeUp enough flexibility to identify and capitalize on demand opportunities.