> For the complete documentation index, see [llms.txt](https://revhero.gitbook.io/revhero-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://revhero.gitbook.io/revhero-docs/automation/rate-recommendations/how-it-works.md).

# How recommendations work

What Revhero prices, what your property needs in place first, and how to read the rate that comes back.

Revhero reads how your property is performing right now. It reads what is already sold, and how fast the date is booking. It also reads how far away the date is, and how much interest your market and your property are attracting.

Revhero then suggests a rate for each future date. The suggestion always sits inside the price range you set.

The suggestions appear on your Dashboard and on the [Yielding Board](/revhero-docs/setting-your-rates/yielding-board.md). There you accept, change or ignore them. **Nothing reaches your channel manager until you send it**, unless you have switched on [Autopilot](/revhero-docs/automation/rate-recommendations/autopilot.md). Your **channel manager** is the system that passes your rates to your channels.

![One recommended rate, and every other combination derived from it](https://272652298-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnzEa7YGji6t92Mfc0ZJ1%2Fuploads%2Fgit-blob-aa7cbc02d37d6c062dd0554680ad223446c776cf%2Fone-rate-derives-the-rest.svg?alt=media)

*Revhero recommends one rate, at your base combination. Your own supplement structure derives every other room, board and occupancy from it.*

## One rate per date, and every other price follows it

Revhero recommends **one rate per stay date**. That rate is for your base room, at base board and base occupancy. Revhero does not price each room type separately.

Every other price comes from that one rate, through your [Pricing](/revhero-docs/setting-your-rates/pricing/pricing-structure.md) supplement structure. A **supplement** is an amount you add to the base rate. You set one for a larger room, or for half board.

This is the most common misunderstanding in the whole feature. If a deluxe room shows a price you do not recognise, check your supplement structure. The recommendation itself is not the problem.

## What has to be in place first

If you see no recommendations at all, the cause is almost always one of the items below. It is rarely Revhero itself.

| Requirement                          | Detail                                                                                                                                                                                                                            |
| ------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Rate Recommendations enabled**     | Switched on for the property in [Settings](/revhero-docs/your-hotels-setup/settings.md)                                                                                                                                           |
| **A base room defined**              | Set in [Settings](/revhero-docs/your-hotels-setup/settings/base-room-and-board.md). Revhero does not support a property that prices every room as a separate unit                                                                 |
| **A published supplement structure** | Revhero recommends rates only for dates inside a period that has one. See [Publishing to the Yielding Board](/revhero-docs/setting-your-rates/pricing/publish-and-yield.md)                                                       |
| **A minimum and a maximum rate**     | Set on the structure for the base combination. Every recommendation stays between them, unless you choose to ignore them in [Recommended Rate Settings](/revhero-docs/automation/rate-recommendations/recommendation-settings.md) |
| **Your systems connected**           | Your reservation data and your market data must both be arriving. See [Integrations](/revhero-docs/your-hotels-setup/integrations.md)                                                                                             |
| **1 year of your own history**       | Revhero compares each date against what your property normally does at that point in the year                                                                                                                                     |

## The 3 stages of demand

Everything Revhero reads measures 1 of 3 things. Learn these 3 words. The Dashboard widgets use them too. They explain why 2 dates with the same occupancy can get different rates.

| Stage             | What it is                                   | What it tells you                     |
| ----------------- | -------------------------------------------- | ------------------------------------- |
| **Search demand** | People looking at your property              | Early interest, before anyone commits |
| **Stay demand**   | People looking at *specific* dates and rates | Real interest in a real stay          |
| **Pickup**        | Actual reservations                          | The only stage that is revenue        |

**Pickup** is the number of room nights booked recently for a stay date. A **room night** is one room sold for one night.

Early interest does not always turn into bookings. A date can attract a lot of searching and still book badly. Another date can book quickly with only modest interest.

Revhero reads all 3 stages, not 1 of them on its own. So "we had a lot of searches" is not by itself a reason to raise a rate.

## A recommendation is a judgement, not a sum

A recommendation is not arithmetic. You cannot repeat it on paper. It is a judgement. Revhero forms it from your property's own history and from the 7 inputs described in [what a recommendation considers](/revhero-docs/automation/rate-recommendations/what-it-considers.md).

So do not try to rebuild the number yourself. Open the [explanation](/revhero-docs/automation/rate-recommendations/reading-the-explanation.md) beside the rate to see what pushed it up or down. Then test it against what you know about the date. Look at your own pickup, at your comp set, and at anything in your diary. Your **comp set** is the group of hotels you have named as your direct competitors.

If the rate matches what you know, accept it. If it does not, replace it with your own rate.

## Where you see it

| Screen                                                                          | What it shows                                                                                                                                     |
| ------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Rate Recommendation** widget (Dashboard)                                      | The recommended rate against your current rate, date by date                                                                                      |
| [Yielding Board](/revhero-docs/setting-your-rates/yielding-board.md)            | The recommended rate beside your send rate, your last published rate, and your minimum and maximum. This is where you review a window and send it |
| [Daily Performance](/revhero-docs/your-hotels-performance/daily-performance.md) | What was recommended for dates that have now passed. Useful for reviewing the rates you accepted                                                  |
| Demand widgets                                                                  | Search demand and stay demand over time against last year, and your share of market demand                                                        |

## Using it well

**Check a large move before you send it.** A sharp jump should have a reason behind it. The reason could be a rise in demand, an event, or a competitor selling out. Check [Pickup](/revhero-docs/your-hotels-performance/dashboard/pickup.md) and [Market Rates](/revhero-docs/roompulse/market-rates.md) first.

**Set a price range you believe in.** Your minimum and your maximum are hard limits. A narrow range pushes every recommendation onto one edge of the range. If every recommendation sits on your minimum, your minimum is too high. Revhero is not wrong. See [your minimum rate](/revhero-docs/automation/rate-recommendations/what-it-considers/minimum-rate.md).

**Do not expect the rate to change every day.** A rate that stays the same usually means the earlier suggestion still holds. That is Revhero working, not failing.

**A sold-out date keeps its rate.** When the whole hotel is fully booked on a date, Revhero does not reprice it. The recommendation stays at your current send rate. If only some room types are sold out, the date is repriced as normal.

**Tune it to your property.** You decide how strongly your booking pace and your competitors' prices move the recommendation, and how far it may move. See [Recommended Rate Settings](/revhero-docs/automation/rate-recommendations/recommendation-settings.md).

**Set your own rate when you know something Revhero cannot know.** Revhero does not see a conference, a group block, or a competitor closing for refurbishment. It does not see a group enquiry in progress. Your local knowledge is better, and you are meant to use it.

**Look back at past dates.** [Daily Performance](/revhero-docs/your-hotels-performance/daily-performance.md) shows what was recommended for dates that have now passed. Compare your own rates against those suggestions. This is the fastest way to learn how much to trust them at your property.

## Related

* [What a recommendation considers](/revhero-docs/automation/rate-recommendations/what-it-considers.md)
* [Why this rate: reading the explanation](/revhero-docs/automation/rate-recommendations/reading-the-explanation.md)
* [Using recommendations in practice](/revhero-docs/automation/rate-recommendations/using-in-practice.md)
* [Forecasting](/revhero-docs/your-hotels-performance/forecasting.md) — a separate feature, with a separate job

***

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