Inflation Books & Groups

Overview

Inflation Books allow users to define inflation percentages per Inflation Group for future dates where supplier pricing has not yet been confirmed. This enables operators to sell packages with estimated pricing that automatically applies compounding inflation rates based on how far in the future the departure date falls.

When to use: When you need to sell departures that are 1-3+ years out and suppliers have not yet provided confirmed rates. The inflation percentage is applied on top of the base price to estimate future costs.

Object Model

Object	Purpose
InflationBook__c	Container for inflation periods. Assigned to a Channel.
InflationPeriod__c	Date range within a book (Valid From / Valid To). Creating a period auto-generates one Inflation Assignment per Inflation Group.
InflationAssignment__c	Junction: links an Inflation Period to an Inflation Group with a specific percentage rate.
Group__c	Inflation Group — a grouping category used to assign different inflation rates to different types of services.

1. Create Inflation Groups

Inflation Groups categorise services that share the same inflation rate. For example, “Hotels EU” and “Hotels US” might have different inflation percentages.

Navigate to Inflation Setup in the Kaptio app menu
Go to the Inflation Group Manager tab
Create groups that represent your inflation categories (e.g. “Hotels EU”, “Transfers”, “Activities”)
Each group is a Group__c record (Inflation Groups are distinguished from other group types internally by the system)

2. Create Inflation Book

In Inflation Setup, create a new Inflation Book
Give it a descriptive name based on the region or market it covers (e.g. “EU Inflation Book”, “US Inflation Book”). The same book can cover multiple seasons by adding separate periods.
The book acts as a container for all inflation periods

3. Add Periods & Set Rates

Click the hyperlink showing the name of the book to open it for editing
Click New Period
Set Valid From date (and optionally Valid To — leave blank for open-ended)
One Inflation Assignment per Inflation Group is created automatically — click Edit to see them
Set the Percentage__c on each assignment (e.g. 3.5% for “Hotels EU”)
Use Copy rates from to duplicate an existing period’s rates as a starting point

4. Assign Book to Channel

Navigate to the Channel record
Set the Inflation Book lookup field to your book
In the Inflation section, enable the Enable Inflation checkbox — without this flag, inflation will not be applied
All pricing through this channel will now apply inflation when base prices exist

Service Profitability Strategy

The Service Profitability Strategy setting on the Channel controls how inflation applies to selling prices. This is a critical configuration choice:

Enabled: Only the cost price is inflated. The selling price is then calculated from the inflated cost using the Channel Markup/Margin or Profitability Group percentage.
Disabled: Both cost and selling prices are inflated independently. Fixed selling prices are inflated directly; markup-based selling prices are inflated after the markup is applied.

See the Pricing Behaviour sections below for full details and worked examples.

5. Assign Groups to Services

Assign an Inflation Group to each service type that needs estimated pricing:

Object	Field	Level
Price Category	InflationGroup__c	Item option level (highest priority)
Add-on	InflationGroup__c	Item option level (same priority as Price Category)
Meal Plan	InflationGroup__c	Item option level (same priority, when meal plans are priced exclusively)
Service	InflationGroup__c	Service level (fallback when no item option group is set)

Resolution Order

The price engine checks whether loaded rates exist for the service dates first. If no rates are found, it resolves the Inflation Group to determine the inflation rate:

Loaded rates check: Are there loaded rates for the service dates? If yes, those rates are used directly — no inflation is applied.
Meal Plan → Inflation Group (when meal plans are priced exclusively)
Price Category / Add-on → Inflation Group (item option level — these are separate price requests at the same priority)
Service → Inflation Group (fallback)

Once the group is resolved, the engine finds the matching Inflation Assignment for that group within the active period and applies the percentage. If no inflation group is found at any of the above levels, the engine falls back to the inflation rate specified directly on the Channel.

Price Engine Logic

Inflation year: 364 days (52 weeks), not 365. This is intentional for week-aligned pricing.
Compound rate: Applied as (100 + percentage) / 100 per inflation year
Multi-year: If a departure is 2+ inflation years out, the rate compounds (e.g. 3% over 2 years = 1.03 × 1.03 = 6.09% total)
Range: Inflation periods can span any date range — there is no hardcoded maximum. The feature was originally called “24-month pricing” but the system supports arbitrary lookback windows. The standard lookback uses a 52-week (one inflation year) and 104-week (two inflation year) window, with extended lookback available via client configuration.
Period matching: The engine checks applicable_on(date) and applicable_for_range(start, end) on Inflation Periods
Cost vs selling: Both cost and selling prices can be inflated, but the calculation path differs depending on the Service Profitability Strategy setting on the Channel. See Pricing Behaviour for details.
Estimated indicators: Inflated prices are marked with EC (Estimated Cost) and ES (Estimated Selling) in the Kaptio UI. The ES label propagates: if the cost is estimated and the selling price is derived from that inflated cost (via markup/margin), the selling price is also marked as estimated.

Quick Reference

Task	Where
Create/manage groups	Inflation Setup → Inflation Group Manager
Create book & periods	Inflation Setup → Inflation Books
Set rates per group	Inflation Period → Inflation Assignments
Assign book to channel	Channel → Inflation Book field
Assign group to service	Price Category / Add-on / Item → Inflation Group field

Cost vs Selling Price Inflation

Inflation applies to both cost prices and selling prices, but they follow different calculation paths. The same inflation percentage from the Inflation Book is used for both, but how it is applied depends on the type of price and the Channel’s Service Profitability Strategy setting.

Cost Price Inflation

Cost prices are always inflated the same way, regardless of the Service Profitability setting:

Look back 52 weeks from the travel date to find last year’s cost
Apply the inflation rate to get the 12-month estimated cost
For 24-month: inflate the 12-month result again

Marked as EC (Estimated Cost) in the UI.

Selling Price Inflation

Selling prices depend on the Service Profitability Strategy on the Channel:

Enabled: Selling price is calculated from inflated cost + markup/margin. No direct inflation on the selling price.
Disabled: Selling prices can be inflated independently — fixed selling prices are inflated directly.

Marked as ES (Estimated Selling) when inflation is applied to the selling price — either directly, or propagated when the selling price is derived from an estimated cost.

Cost Price Estimation Flow

Add Service to Itinerary

▼

Are there loaded rates for the service dates?

Yes

▼

Use loaded rates

No inflation applied

▼

Resolve Inflation Group, find Inflation Book on Channel

▼

Are there rates within one inflation year (52 weeks)?

Yes

▼

12-month inflation

Last year cost + inflation rate

EC

▼

Are there rates within two inflation years (104 weeks)?

Yes

▼

24-month inflation

12-month cost inflated again

EC

▼

No Cost on Itinerary Item

Cost Price Worked Example

Last Year Cost Price: 550

Inflation Rate: 10%

Period	Formula	Result
12-month	550 + 10% = 550 × 1.10	605.00 `EC`
24-month	(550 + 10%) + 10% = 605 × 1.10	665.50 `EC`

Selling Price: Service Profitability Enabled

When Service Profitability Strategy is enabled on the Channel, inflation is applied only to the cost price. The selling price is then derived from the inflated cost using whichever markup/margin applies. Fixed selling prices and Price Manager markup/margin are ignored — the system always recalculates from the inflated cost.

Key principle: Inflate the cost first, then apply profitability on top. The selling price is never inflated directly.

Selling Price Flow (Profitability Enabled)

Add Service to Itinerary (Service Profitability Enabled)

▼

Fixed Sales Price?

▼

Price Manager ignored

Channel Markup/Margin applied to inflated cost

12m: (Cost + Infl) + Ch. Markup ES

24m: ((Cost + Infl) + Infl) + Ch. Markup ES

Markup/Margin in Price Manager?

▼

Price Manager ignored

Channel Markup/Margin applied to inflated cost

12m: (Cost + Infl) + Ch. Markup ES

24m: ((Cost + Infl) + Infl) + Ch. Markup ES

Profitability Group?

▼

Profitability % applied to inflated cost

12m: (Cost + Infl) + Prof. %

24m: ((Cost + Infl) + Infl) + Prof. %

ES — sell is derived from estimated cost

Worked Example 1: Fixed/Markup Selling Price (Profitability Enabled)

Last Year Cost: 550

Inflation: 8%

Channel Markup: 25%

Fixed selling prices and Price Manager markup/margin are ignored. Channel Markup/Margin is applied to the inflated cost.

Period	Step-by-Step	Result
12-month	Inflated cost: 550 × 1.08 = 594
Selling: 594 × 1.25	742.50 `ES`
24-month	Inflated cost: 550 × 1.08 × 1.08 = 641.52
Selling: 641.52 × 1.25	801.90 `ES`

Worked Example 2: Profitability Group (Profitability Enabled)

Last Year Cost: 550

Inflation: 8%

Profitability Group: 40%

The Profitability Group percentage is applied to the inflated cost. Because the selling price is derived from an estimated cost, the ES label is also shown on the selling price.

Period	Step-by-Step	Result
12-month	Inflated cost: 550 × 1.08 = 594
Selling: 594 × 1.40	831.60 `ES`
24-month	Inflated cost: 550 × 1.08 × 1.08 = 641.52
Selling: 641.52 × 1.40	898.13 `ES`

Selling Price: Service Profitability Disabled

When Service Profitability Strategy is disabled on the Channel, selling prices can be inflated independently from cost prices. The behaviour depends on how the selling price was originally set up.

Key principle: Selling prices are inflated in their own right. Fixed selling prices are inflated directly; markup-based prices go through an inflate-markup-inflate chain.

Selling Price Flow (Profitability Disabled)

Add Service to Itinerary (Service Profitability Disabled)

▼

Fixed Sales Price?

▼

Inflate selling price directly

from last year’s fixed selling price

12m: Sell + Infl ES

24m: (Sell + Infl) + Infl ES

Markup/Margin in Price Manager?

▼

Inflate cost → apply markup → inflate selling

Double inflation path

12m: ((Cost + Infl) + Markup) + Infl ES

24m: ((Cost + 2×Infl) + Markup) + 2×Infl ES

Profitability Group?

▼

Profitability % applied to inflated cost

12m: (Cost + Infl) + Prof. %

24m: ((Cost + Infl) + Infl) + Prof. %

ES — sell is derived from estimated cost

Worked Example 1: Fixed Selling Price (Profitability Disabled)

Last Year Selling Price: 750

Inflation: 10%

Inflation is applied directly to the previous year’s fixed selling price.

Period	Step-by-Step	Result
12-month	750 × 1.10	825.00 `ES`
24-month	750 × 1.10 × 1.10 = 825 × 1.10	907.50 `ES`

Worked Example 2: Markup/Margin Selling Price (Profitability Disabled)

Last Year Cost: 550

Inflation: 10%

Selling Price Markup: 15%

The cost is inflated first, then the markup is applied, and then the result is inflated again to get the estimated selling price. This is the most complex calculation path.

Period	Step-by-Step	Result
12-month	Inflated cost: 550 × 1.10 = 605

markup: 605 × 1.15 = 695.75
sell inflation: 695.75 × 1.10 | 765.33 ES | | 24-month | Inflated cost: 550 × 1.10 × 1.10 = 665.50
markup: 665.50 × 1.15 = 765.33
sell inflation: 765.33 × 1.10 × 1.10 | 926.04 ES |

Worked Example 3: Profitability Group (Profitability Disabled)

Last Year Cost: 550

Inflation: 10%

Profitability Group: 40%

With a Profitability Group, the behaviour is the same whether Service Profitability is enabled or disabled: inflate the cost, then apply the Profitability Group percentage. The ES label appears because the selling price is derived from an estimated cost.

Period	Step-by-Step	Result
12-month	Inflated cost: 550 × 1.10 = 605
Selling: 605 × 1.40	847.00 `ES`
24-month	Inflated cost: 550 × 1.10 × 1.10 = 665.50
Selling: 665.50 × 1.40	931.70 `ES`

Worked Examples Summary

All six selling price scenarios side by side, showing how Service Profitability Strategy changes the calculation. Cost price inflation (550 base) is the same in all cases.

Service Profitability Enabled

Only the cost is inflated. Selling price is always derived from inflated cost + markup/margin.

Selling Price Type	Base Values	12-Month Selling	24-Month Selling
Fixed Price / Markup	Cost 550, Infl 8%, Ch. Markup 25%	742.50 `ES`	801.90 `ES`
Profitability Group	Cost 550, Infl 8%, Prof 40%	831.60 `ES`	898.13 `ES`

Service Profitability Disabled

Both cost and selling can be inflated. Fixed selling prices are inflated directly; markup-based prices go through cost inflation + markup + selling inflation.

Selling Price Type	Base Values	12-Month Selling	24-Month Selling
Fixed Selling Price	Sell 750, Infl 10%	825.00 `ES`	907.50 `ES`
Markup/Margin	Cost 550, Infl 10%, Markup 15%	765.33 `ES`	926.04 `ES`
Profitability Group	Cost 550, Infl 10%, Prof 40%	847.00 `ES`	931.70 `ES`

Cost Price (Same in Both Modes)

Base Values	12-Month Cost	24-Month Cost
Cost 550, Inflation 10%	605.00 `EC`	665.50 `EC`

Key Differences at a Glance

Fixed/Markup + Enabled: Selling is derived from inflated cost. The original selling price is irrelevant.
Fixed + Disabled: The selling price itself is inflated directly — simplest path.
Markup + Disabled: Most complex — cost inflation, markup, then selling inflation (double inflation effect).
Profitability Group: Always the same regardless of the toggle — inflated cost + profitability %. ES label appears because selling is derived from estimated cost.

Salesforce Objects

InflationBook__c
InflationPeriod__c (child of Book)
InflationAssignment__c (junction: Period × Group)
Group__c (Inflation Group)
Channel__c.InflationBook__c (lookup)
Channel__c.EnableInflation__c (checkbox — required for inflation to be applied)
Channel__c.ProfitabilityStrategy__c (controls how selling price is derived from inflated cost)
Price_Category__c.InflationGroup__c
Item__c.InflationGroup__c

Code References

File	Purpose
kaptiotravel/InflationPeriods.cls	Auto-creates Inflation Assignments when a period is inserted
kaptiotravel/Groups.cls	Creates Inflation Assignments when a new Inflation Group is created
kaptiotravel/BaseFallbackBookService.cls	Inflation Book UI in Lightning
kaptiotravel/InflationGroupManagerController.cls	Inflation Group Manager UI controller
ktapi/pipes/mixins.py	Inflation group resolution (Meal Plan → Price Category/Add-on → Service) and day handler
ktapi/InflationAssignmentCollector	Collects applicable inflation assignments for pricing
ktapi/response_helper.py	Inflation rate calculation, 364-day year constant

Overview

Object Model

1. Create Inflation Groups

2. Create Inflation Book

3. Add Periods & Set Rates

4. Assign Book to Channel

5. Assign Groups to Services

Resolution Order

Price Engine Logic

Quick Reference

Cost vs Selling Price Inflation

Cost Price Inflation

Selling Price Inflation

Cost Price Estimation Flow

Cost Price Worked Example

Selling Price: Service Profitability Enabled

Selling Price Flow (Profitability Enabled)

Worked Example 1: Fixed/Markup Selling Price (Profitability Enabled)

Worked Example 2: Profitability Group (Profitability Enabled)

Selling Price: Service Profitability Disabled

Selling Price Flow (Profitability Disabled)

Worked Example 1: Fixed Selling Price (Profitability Disabled)

Worked Example 2: Markup/Margin Selling Price (Profitability Disabled)

Worked Example 3: Profitability Group (Profitability Disabled)

Worked Examples Summary

Service Profitability Enabled

Service Profitability Disabled

Cost Price (Same in Both Modes)

Key Differences at a Glance

Salesforce Objects

Code References

See Also