Learn more about the Why This Rate feature, where TakeUp offers deep transparency into the pricing decisions made by the system.
Overview
The Why This Rate feature from TakeUp offers deep transparency into the pricing decisions made by the system. It enables property managers and revenue teams to see not just the selected rate for any given occupancy date, but why that rate was chosen. Behind this feature is TakeUp’s core intelligence—learning and applying the price sensitivity of your property's demand.
What Is Price Sensitivity?
Price sensitivity refers to how potential guests react to changes in price. If prices go up, how many guests will still book? If prices drop, how many more bookings can be expected? TakeUp learns this behavior continuously and adjusts pricing to balance revenue maximization with occupancy optimization.
Where do I find Why This Rate?
Navigate to the Rate Management page in your TakeUp Web App. Click on any individual day.
Click on Why This Rate? Below the weekly calendar.
The Why This Rate? Feature will populate.
Key Feature Capabilities
Justification Summary
For every managed rate and date, TakeUp includes a justification text. For example, a rate change might state:
“Rates were dropped by $10 to stay competitive.”
But that’s just the summary. The real power lies below this statement, where you can explore interactive visualizations of how alternative prices would have impacted demand and revenue.
Interactive Price Sensitivity Chart
Drag and drop the slider on the interactive chart to simulate “what-if” scenarios:
- Higher or Lower Rates: See what would happen if the rate were adjusted up or down.
- Occupancy Impact: Visualize how changes in pricing would affect projected occupancy.
- Expected Room Revenue: See the trade-offs between higher prices and the potential loss in bookings.
Example:
If you raise your rate by $50:
- You might earn more per reservation.
- But if occupancy drops significantly, your overall revenue could fall.
TakeUp uses this sensitivity analysis to recommend rates that optimize total revenue, not just price per room.
Confidence Ranges
TakeUp doesn’t just give one answer. The chart includes:
- Upper Bound: The optimistic scenario—what if the market tolerates a higher rate?
- Lower Bound: The conservative scenario—what if demand is more sensitive than expected?
This range reflects the uncertainty inherent in forecasting demand, and helps you make informed decisions based on your risk preferences.
🛠️ Rate Behavior Settings
To give customers control over how TakeUp navigates price sensitivity, the system supports three AI behavior modes:
- Conservative – Prioritizes reliable revenue with minimal risk.
- Moderate – Balances upside potential with acceptable uncertainty.
- Courageous – Pursues aggressive revenue opportunities, accepting greater risk.
The justification will explain which mode is currently active. For example:
“Rates are aligned with your current Courageous pricing strategy.”
Decision-Making Partnership
The Why This Rate feature is more than an explanation—it's a tool for collaborative decision-making. It ensures customers understand how TakeUp is interpreting the market and empowers them to tune the system’s behavior in line with their strategy.
TL;DR
- Why This Rate shows why a rate was selected.
- It visualizes price sensitivity—how guest demand responds to price changes.
- It supports informed trade-offs between price, occupancy, and revenue.