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How to set the rate gap between your room types

The rate gap (the supplement) between Standard, Superior and Suite is not decoration. Set well, it lifts your ADR without hurting occupancy. Set badly, it either leaves the suites empty or makes you sell out the Standard rooms too cheap.

The mistake: Standard sold out, or suites left empty

The gap between room types decides who buys what. If it is too small, everyone moves up to the suite almost for free — and the Standard rooms, which are most of your rooms, are left over. If it is too big, nobody moves up and the suites stay empty all season. Either way you leave money on the table.

Yielding between room types

The goal is not a general rate increase — it is the right mix. Look at a simple scale of supplements and how you adjust it:

Example · a scale of supplements Standard: €80 (base rate)
Superior: 80 + 20 = €100
Suite: 80 + 50 = €130

Superior fills fast → raise its supplement · it lags → lower it

When one type clearly sells faster than the others, its supplement can carry more — and ADR rises from the mix, without touching the base rate at all.

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Did you know? WisDom RM keeps a base rate per room type and season, and the Demand Calendar shows the suggested rate for the room type you choose. What it does not have is on-the-books per room type: occupancy and pace are measured for the whole hotel. So you set the supplement yourself, looking in your PMS at which type is selling — and the Decision Log keeps the change next to what happened afterwards.

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The supplement is also an upsell tool

A well-set gap sells easily at the moment of booking or at check-in: “+€20 for more space and a sea view” is a small, sensible upgrade that guests often accept happily. So the supplement is not only a yielding tool — it is also a natural upsell point that lifts ADR per booking.

Watch each type, not the total

The hotel average hides the truth: the total can look fine while the suites lag and the Standard rooms sell out. That is why you watch each type separately. The app’s Dashboard gives its suggestions separately for each room type; pace, though, is measured for the whole hotel, so which type is selling out is shown by your PMS. With the two together you adjust the supplements where needed, not with one general percentage for all.

And the suggestion keeps the order you set. Room types are ranked by the season’s base rates, and an increase for a cheaper type is cut to one euro below the target rate of the next more expensive type. Otherwise one strong night would bring the Standard up to the Superior, and the supplement would disappear without anyone deciding it. The rule only cuts increases: if the more expensive type is heading for a cut, the cheaper one is not pushed down.

The key: ADR does not rise with a general rate increase — it rises with the right mix by room type. You adjust the supplements, not the base rate.

Conclusion

Your room types are levers, not constants. Set sensible supplements, follow how each type performs on its own, and adjust the gap based on how each one sells — not by eye. That way you fill both the Standard rooms and the suites at the right rate, and ADR rises by itself, from the mix.

Alkis Tselemegkos
Alkis Tselemegkos
Creator of WisDom RM

Mathematician with studies in hospitality management and years of night shifts in hotels. WisDom RM — and this blog — were born on the night shift.

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