What is the difference between rack rate and bar rate

This rate may vary according to the volume of business guaranteed by the companies. Group Rate: These are rates which are offered to groups, meetings and conventions using the hotel for their functions. Promotional Rate Codes: These rates are generally offered during low occupancy periods to any guest to promote occupancy. Early Bird Rates, Stay for 3 and pay for 1 etc. These rates may also include certain add-ons to attract the customers like free WiFi for 24 Hrs, free buffet dinner etc.

Incentive Rate Code: The Rate offered to individuals who belong to an association or holders of special membership cards or Credit cards. As CEO and Founder of Xotels, Patrick Landman has made it his mission to turn independent hotels and resorts into local market leaders.

Below you will find opinion articles written by Patrick Landman. Go to Top. The guest is also more likely to spend extra at the hotel and the longer stay inspires a positive review because of familiarity.

Family rate A family rate is a price reserved for parents and children. The price of extra beds is usually included. Also, there are often some add-ons included, such as fun children activities.

If your accommodation is a place where many families stay, this can be an attractive rate to offer. Package deal The best available rate BAR in combination with an activity or dinner is called a package deal. There can be many different kinds of package deals so get creative and offer different choices. Think of a package deal including bike rental, or a 2-night stay including dinner on one night. Learn more: Hotel packages: why are they especially now important for your revenue?

Corporate rate Is your hotel popular for business travellers? If so, you can consider a special rate for this target group. The corporate rates are for business guests who return regularly or add significant value to the hotel. Look at businesses that drive volume to your property and offer them a competitive price, exclusively for them.

Group travellers for leisure can also receive a similar discount, for example, tour groups or weddings. These agreements are not made directly with the guests, but with the travel agencies, companies, or organisers. Complementary rate This rate is not seen anywhere online but only in the property management system. The rate distributed will fluctuate to be the same as unrestricted rates available publicly on any other channel, including online retailers, hotel web sites, the GDS , the CRO or the hotel directly.

This practice creates transparency in terms of the prices the hotel is offering direct on its own website versus prices on third party website, such as OTA. Combined with a BAR rate strategy, a hotel usually also incorporates a guarantee to always lower the best price directly.