What are the types of room rates?

What are room rates?

Room rates means the rates at which rooms or other accommodations are rented to occupants or transient lodging guests.

What are the 4 types of room?

Why do hotels have different types of room rates?

Hotels decide how to price their rooms "based on many different factors, including the market they are in, special events or holidays that may affect their demand for rooms and the differences in the rooms they have to sell,'' said Craig Eister, a senior vice president for the hotel company IHG.

What is special room rate?

Special rate is the room price that has been discounted by percentage based on the rack rate. This rate is applied for special guests, such as: Long-term bookings. Regular guests, who usually use hotel services.

Classification of Hotel Room Rates - Tutorial 43

What are rate codes?

Rate codes are used to define the various prices for each room type over a particular date range or rate season. It is possible to identify multiple rate amounts for a single rate code and a separate price per person over a seven-day period (mid-week and weekend).

What is crib rate?

Crib Rate: It is a special rate charged for children above 5 years and below 12 years of age who are accompanying their parents. The hotel provides a crib (baby bed) in room for infants.

How do hotels determine room rates?

There is no one set factor for determining how much a hotel room will cost. Rather, hotel pricing is determined by any combination of the following factors: location, seasonality, demand, star rating, amenities, value of services and other hotel competition.

What is the difference between rack rate and bar rate?

From the diametrically opposed side we have the Rack Rate, this is the maximum price at which you want to sell a specific accommodation. Between these two values, which obviously vary by room type, we find the “BAR” or the “Best Available Rates“. These are the sales prices of a room for a certain day.

What is Rate Plan in hotel?

But what exactly is a rate plan? It is the technical term given to different rates you see on a hotel website when you search for a set of dates. Rate plans work their magic behind the scenes so guests can have different options to choose from when planning a hotel stay.

What is a room type?

A typical room type could be named “Single room” or “Double room”. The room type holds the room description, number of guests it can accommodate, price, etc. Your property may have multiple rooms (or units) that all are of the same room type.

What are standard rooms?

Standard room means accommodation with basic amenities such as proper lighting, toilet with running water, ventilation and door locking system.

What are the 2 types of reservation?

What are STO and rack rates?

STO RATE = Standard (Special) Tour Operators Rates. RACK RATE = The normal rate known to the public. It usually includes a commission, which varies from hotel to hotel.

What is group and tour rates?

A group rate, in the travel industry, is a negotiated rate on travel that incentivizes for a crowd, group, or multiple people that books together. Most commonly it is offered with stays or vacation plans at hotels and other accommodations, and more often to business and corporate entities.

What is package rate?

What is the meaning / definition of Package Rate in the hospitality industry? A room rate that includes the sales of goods and services. The most common time of package rate is in an all-inclusive hotel where in the purchase of a room also include a certain amount of drinks, meals and activities during a stay.

What are the factors that affect the room rates?

What is a fade rate?

Definition. Fade is the tendency to earn the mean real required rate of return over time. Persistence is the tendency to earn the same return as in the previous period.

What is hotel hurdle rate?

A hurdle rate sets the minimum value of a reservation that can be booked on a given day. If the hurdle rate is $200 and the room rate is $150 a guest will be prevented from making a one-night reservation on that date.

What are the 2 major components of determining room rate?

The rate of a hotel room is based on the competition, cost, standard of services and amenities offered by the hotel, the guest profile, location of the hotel, location of the room etc.

What is group rate?

Definition of group rate

: a uniform rate charged to or from any one of a group or block of points within a given territory. — called also blanket rate, block rate.

What are corporate rates?

A corporate rate is the amount of money a hotel charges guests who are staying there because they are traveling for business reasons. It is usually less than the normal amount.

What is day rate?

A day rate is the billing cost for an individual's services for a single day. It is sometimes called a per diem. Some purchasing organizations prefer to receive a quoted day rate instead of an hourly rate for services.

What are the types of reservation in hotel?

What are the major types of reservations?

Guaranteed reservations (prepayment, payment cars, advance deposit, Voucher or MCO, corporate) and Non-guaranteed reservations.