What is price tolerance (repricing and re-approval)?

Price tolerance is the percentage limit of a price increase accepted without a new approval, when the price changes after a trip request has been approved. Time passes during approval and supplier prices can move meanwhile. Tolerance stops small movements from restarting approval, while preventing large increases from being bought without the approver's knowledge.

How does price tolerance work?

Price tolerance works by comparing the current price fetched at purchase with the approved price. If the current price does not exceed the approved price plus the tolerance margin, the purchase is made. If it does, the purchase stops and the request goes to approval again at the new price. This step is called repricing.

A simple example: a hotel request of 100 units is approved and the tolerance for hotels is 5 percent. If the price at purchase is 104 units, the increase is within the margin and the purchase continues. If it rises to 108 units, the 8 percent increase exceeds the tolerance and the request returns to the decider with the new price.

Outcomes inside and outside tolerance

Tolerance has two outcomes: the purchase continues, or the request returns for approval. An option disappearing completely, meaning it can no longer be sold, is a separate situation and not a tolerance matter; a new selection is needed in that case.

How wide should tolerance be?

Tolerance is set according to how volatile a product's price is and how much control the company wants. Zero tolerance is the strictest, but it brings the approver back for every small increase. A wide tolerance speeds up approval but increases the room for deviation from the approved budget.

That is why it makes sense to decide per product group rather than with a single rate. A slightly wider margin can be chosen for products whose price moves with demand, such as accommodation and cars, and a narrow one for steadier products. Tolerance also does not replace policy limits: the policy decides what goes to approval, while tolerance decides how much deviation is accepted after approval.

Price tolerance versus policy limit

Price tolerance and a policy limit answer different questions. A policy limit decides whether a choice goes to approval at all: if the nightly hotel cap is exceeded, the request goes to approval. Price tolerance applies after approval is given and decides how far the price may deviate from the approved one.

So a request that stayed inside the policy can still return to approval when tolerance is exceeded; conversely, an approved out-of-policy request does not ask for re-approval as long as it stays within tolerance.

Price tolerance in Kurumsal.pro

In the Kurumsal.pro portal that your agency offers its corporate clients, price tolerance is part of the approval workflow defined by the company administrator. Tolerance is entered separately for four product groups, between 0 and 50 percent: hotel, transfer, car rental, and tour, villa, yacht, activity. No tolerance is defined on the portal screen for flight, bus and visa items; for these items any price increase at purchase returns the request to approval.

• When the final approval is given the price is fetched again; if the total is within tolerance, the purchase is made from the company wallet.
• If it is outside tolerance, no purchase is made and the request returns to the "re-approval" status.
• On re-approval the old price, the new price and the percentage change are shown.
• The requester sees "price tolerance exceeded" on the request status screen.
• For a direct purchase that does not go through approval, the portal shows the price change; the purchase is not made until the traveler explicitly accepts the new price.

This check matters because sending a request for approval does not open a pre-booking with the supplier; details are under ticketing time limit. For the other settings of the approval workflow see travel approval workflow.