Hotels will always have more than one room rate code category for
each room type in the hotel. Room rates categories generally correspond to
types of rooms available to sell in the hotel ( Eg: Suite, Deluxe, Premiere, Studio,
Pent house etc. ).
Room Rates and rate codes may also vary according to the available
room features such as room size, location, view, furnishing, decors etc
and also with competitors pricing.
Below are some of the
standard Room Rates and Rate codes used in hospitality industry:
Rack Rate: Is
the Standard rate or Published tariff defined by the hotel management for a
particular room category / type. This is generally printed on the tariff sheet
of the hotel and these details are also submitted to the local government
authorities for hotel licensing and in some countries for Gov.
tax compliance . In other word's these rates are always without
any sorts of discounts.
Corporate or Commercial
Rate: These are rates offered to companies that provide frequent
business for the hotel or its chain. This rate may vary according to the volume
of business guaranteed by the companies.
ADHOC Rate Code: These
are normally non-standard rates which is offered as a special one time rates
for first time corporate's.
Group Rate: These are
rates which is 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. are some
examples. 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. Eg: Amex / VISA / Master
card holders get 5% discount on Rack Rate, Lufthansa Frequent Flyer
members get 25 % discount etc. For hotels these rates always give potential
referral business.
Family Rate: A rate
reserved for families with children. Usually these rate include Extra Bed
charges and may also include some free add-on activities for children.
Package Rate: Rates
that includes a guest room in combination with other available events or
activities. ( Eg: Best of London package which includes room rental, all
meals, site seeing, airport transfers etc. ) Package rate can be also a simple
room and meal package like American Plan (
AP), Modified American Plan (MAP), Continental Plan ( CP ) etc.
Best Available rates ( BAR
) : These rate codes are the lowest discounted rate available for a
day which can be offered to the guest by the Reservation or Front desk staff.
BAR can be off different types:
'Dynamic BAR' - Has
different tiers and each tiers will be opened and closed according to the
occupancy of the hotel. ( The new age hotel management software's does this
automatically for the Revenue Mangers.)
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Sample Dynamic BAR Rate
|
|
|
BAR - Tier
|
Open when occupancy
|
|
BAR - 01
|
0 % to 25 %
|
|
BAR - 02
|
26 % to 35 %
|
|
BAR - 03
|
36 % to 50 %
|
|
BAR - 04
|
51 % to 75 %
|
|
BAR - 05
|
76 % to 100 %
|
'Daily BAR' - Has a
pre-defined daily room rate regardless of room categories ( Run of the house)
and occupancy, these rates are set according to the day of the week, as per the
demand of hotel rooms in the city, special day's or seasons, as per the room
demand forecast done by the hotel revenue manager.
|
Sample Daily BAR rate
|
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DATE
|
DAY
|
RATE ( $ )
|
|
19/11/2012
|
MON
|
200.00
|
|
20/11/2012
|
TUE
|
250.00
|
|
21/11/2012
|
WED
|
180.00
|
|
22/11/2012
|
THU
|
180.00
|
|
23/11/2012
|
FRI
|
300.00
|
|
24/11/2012
|
SAT
|
350.00
|
|
25/11/2012
|
SUN
|
350.00
|
|
26/11/2012
|
MON
|
200.00
|
|
27/11/2012
|
TUE
|
250.00
|
