Room rates

Room Rates

Room rates refer to the different pricing schemes implemented by lodgings to charge their guests for their accommodations. These rates vary depending on several factors, including the time of day, duration of stay, type of room, and number of guests.

One type of room rate is the day rate, which is usually half the regular rate for a room occupied by a guest during the day, up to 5 p.m. This is sometimes referred to as the use rate. On the other hand, the flat rate is a specific room rate agreed upon by the hotel and group in advance, usually for a group of individuals. The group rate is similar to the flat rate, but it may also be extended to individual guests who are part of a larger group.

Another type of room rate is the net group rate, which is a wholesale rate for group business that an operator may add a markup to if desired. This is usually lower than the group rate. The net wholesale rate is another wholesale rate that is applicable to both groups and individuals, but only when a hotel is specifically mentioned in a tour folder or brochure.

Lastly, there is the published rate, which is a full rate made available to guests and advertised to the public. This is also known as the rack rate. Room rates are an essential aspect of any lodging’s revenue management strategy, as they help generate revenue and determine their overall profitability.