Minimum and maximum rates are the guardrails that keep your strategy stable. Without them, dynamic pricing can turn into chaotic “up and down by gut feel.”
The goal of min/max is not to sit in the middle
The goal is a defensible range that lets you move confidently with demand—without dropping below profitability or exceeding what the market will accept for your product.
1) Set your rate floor
A rate floor is the minimum price that:
- protects margin and covers costs;
- fits your positioning (quality and service level);
- doesn't train the market to wait for constant discounts.
Start with one floor for your base room, then refine by season and room type.
2) Set your rate ceiling
A rate ceiling is the maximum price that remains:
- realistic for your market and product;
- convertible (it doesn't kill demand on strong dates);
- supported by value (policies, amenities, reputation).
On peak nights and major events, ceilings can be higher—but still need to be defendable.
3) Build a room-type rate ladder
Once you have min/max for the base room, add logical differentials for each category (for example +X for superior, +Y for suites). This supports upsell and prevents inconsistent dynamic pricing across room types.
In Sigma Revenue, this is easier to manage in the Calendar View.
4) Tie min/max to your automation rules
If you use automation, min/max are your seatbelt. For example, Autopilot can adjust rates automatically while staying inside your range.
You get speed and consistency without losing control over strategy.