Rates and Meal Plans

The following set of terms is focused on various types of room rates and meal plans offered to hotel clients. The different rates might be perceived as well as stay restrictions that are described in the following section of the terminology overview.

RACK – The price of the hotel room is presented physically at the front desk. The rate is commonly described as the opposite of the BAR (Best Available Rate) as the highest rate publically available. In many countries, this rate is required by laws or directives. RACK is offered to walk-ins (see their specification as a marked segment for further understanding).

BAR – Best Available Rate is not the best rate offered by the accommodation facility but the best publically available rate. Within e-commerce, the rate parity is no longer required by the mutual agreements, and the BAR describes the online rate, even though there are differences in the rates on various online distribution channels.

NR – Non Refundable rate is connected with a property-specific discount (commonly 10 %), advanced accommodation payment, and other services without the cancellation policy. The payment is not returned to the client when the reservation is cancelled.

MLOS – Minimum Length of Stay can be used as a discount for longer stays and as a stay restriction, where the revenue managers try to target specific customers. Commonly, this restriction is used to avoid short stays.

CORPRATE – Corporate Rate is an agreement between the hotelier and corporate partners that guarantee special rates and services structure. Fixed rates are becoming more flexible, and discounts from BAR are offered to avoid revenue loss in a dynamic environment.

Complimentary Rate – Free of Charge accommodation provided to business partners.

House Use – Special rate or even gratuity offered to hotel employees of close partners.

Opaque Rate – Non-visible, time-limited and quest-specific offer. Sometimes described as well as the ad hoc rate.

Incentive Rate – Special discounted offer to loyal business partners who might provide their employees, families or other business partners with a company-specific discount code that stimulates their demand for hotel services.

Group rate – For the leisure or corporate groups, special rates are offered based on the group budget and revenue managers' willingness to sell the bulk of the rooms. The group rate is commonly lower, but the average room rate for specific occasions might be even higher.

Rate Parity – The strategy of using the same public rates on the online distribution channels. Rate parity is no longer part of the agreements for the OTAs but might be found in the contract with other distribution partners. Rate parity can be described as rate equality. The client’s final decision is not influenced by the price stimuli but by the distribution channel convenience.

Rate Disparity – Contrary to rate parity, the channels are differentiated by the presented price, and the preferred channels offer better rates and conditions or services. Therefore, a customer’s decision is mainly affected by the price stimuli. On the other hand, a higher rate of disparity might cause confusion and loss of the customer.

Full Board (American Plan) – The room rate is complemented by the three daily meals (breakfast, lunch and dinner). The rate is charged, including these meals.

Room Only (European Plan) – The room is charged separately without other services.

B&B (Continental Plan) – The room is charged, including breakfast. The plan is the most common; for further reporting, it is crucial to administer the room revenue and other revenue separately.

All-Inclusive – Special plan that contains not only the accommodation but all the other services, charges and taxes. The range of services must be clearly defined to avoid service over usage and revenue loss.

DDR – Delegate Daily Rate is a rate used by the event planners to set the average rate of a set of services (accommodation is excluded) on the delegate for a day of the event. For shortened events, the Half DDR of 8 Hours DDR is used.