ROOM TYPES AND RATES
EDITH E. LOPEZ
Hotels always have more than one rate code
category for each room type. Room rates
categories generally correspond to types of
rooms available to sell in the hotel ( E.g.: 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, décors etc
and also with competitors pricing.
HOW DO HOTELS DETERMINE THEIR RATES?
Criteria's influencing room rates:
• Size (square meters)
• Type of room and bed
• Location / View
• Grade (Stars *)
• Furnishing / Amenities
(features)
• Level of Service
• Type of business
• Etc…
• What about?
• -Season?
• -Weekday or
Weekend?
• -Time of arrival?
• -Inclusive or non
inclusive?
• -Per person or per
room?
ROOM TYPES AND RATES
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 words 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.
ROOM TYPES AND RATES
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.
Early bird Rate: This type of rates are only open X days before arrival. Eg:
Open only when 7 Days before arrival, 14 Days Before Arrival, 30 Days Before
arrival Etc.
ROOM TYPES AND RATES
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 Pla
n ( 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
ROOM TYPES AND RATES
'Daily BAR' - Has a pre-defined daily room rate regardless of room categories and
occupancy, these rates are set according to the day of the week, as per the
demand of hotel rooms in the city, special days or seasons, as per the room
demand forecast done by the hotel revenue manager.
Complimentary Rate: A Room rate with zero room charge which is offered to
special guests, industry leaders, Gov. officials etc.
House use Rate: A Room rate with zero room charge which is used for rooms
stays for hotel purpose. Eg: Manager or duty room, In house General / Resident
manager room etc.
Zero Rate Code: These kind of rates are used as system requirements for PMS's
as these would be tagged to Dummy rooms, Paymaster rooms and Group Master
rooms.