This guide explains how to configure a Last Area Value Yield Adjustment in the Rate Manager to ensure that rates remain above a minimum threshold when the last room in a Category is being sold.

Overview

The Last Area Value Yield Adjustment allows you to protect your revenue when selling the last available room (Area) in a Category. It works by adjusting the rate calculation so that commissions, packages, or other inclusions do not cause the net rate to fall below a minimum amount you set.

This is useful when you have rates that include commissions paid to Online Travel Agents (OTAs) or packages with bundled extras. Without this adjustment, the net revenue for the last room sold could drop below a level that is profitable for your property.

Key Terms

Example Scenario

Suppose you have a Standard Room category with a Last Area Value of $150. You have a Rate Type that sells at $160 per night, but includes a 15% OTA commission ($24). The net revenue would be $136, which is below your $150 threshold. Without a Yield Adjustment, RMS would make this Rate Type unavailable when only one Standard Room remains.

By configuring a Yield Adjustment (for example, a $30 increase), RMS adjusts the rate calculation upward so that the net revenue after commission stays above the $150 Last Area Value. The Rate Type remains available on the channel, and your revenue is protected.

How to Configure a Last Area Value Yield Adjustment

In the side menu of RMS, go to Charts > Rate Manager.

1. Select the Control Panel icon.

2. Select the Add icon.

3. Select the Restriction Type as Last Area/Room Value Yield Adjustment.

4. Optional: Select a Property.
5. Select a Date Range, or select the checkbox Set Permanently. 
   "Set Permanently" will override any Date Range and apply the adjustment indefinitely. 
   Select the Add icon to add multiple date ranges if needed.
6. Optional: Select the checkboxes for specific Days of the Week if the adjustment should only apply on certain days.
7. Select an Adjustment Type. 
   The available adjustment types determine how the adjustment amount is applied to the rate calculation (for example, as a fixed dollar amount increase or as a percentage increase).
8. Enter an Adjustment Amount. 
   This is the value by which the rate will be adjusted. For example, entering 30 with a fixed amount adjustment type would increase the rate by $30 when calculating the Last Area Value threshold.
9. Optional: Enter an Occupancy Benchmark. 
   If set, the yield adjustment will only apply when the property's occupancy reaches this percentage. The Occupancy Calculation Rule for the property determines how occupancy is measured.
10. Select Category/Room Type to move to Step 3.

11. Select the relevant Categories or Room Types that this adjustment should apply to.
12. Select Rate Type to move to Step 4.

13. Select the Rate Type(s) that this adjustment should apply to.
14. Select Save/Exit.

The Yield Adjustment will now be used when calculating the Last Area Value for the selected Rate Types and Categories. The adjustment will apply to any connected channel mapped with the selected Rate Type.

★ Tip: Select the icon to set a Restriction Type as a favourite for quick access.

How to Verify the Adjustment is Working

After saving the Yield Adjustment, you can verify it is applied correctly:

In the RMS Training Environment: 

1. Reduce availability for a test Category to 1 room and confirm that Rate Types with commissions or packages remain available (rather than being restricted by the Last Area Value).
2. If a Rate Type is still being restricted when it should not be, review the Adjustment Amount to ensure it is high enough to offset the commission or package cost.