In the competitive world of hospitality, setting the right room rates is one of the most strategic decisions a manager can make. The way prices are presented can directly impact your occupancy rate and, consequently, your profits. The more rate options you offer, the higher your chances of attracting different guest profiles — and gaining an edge over the competition.

‍

In this article, we’ll explore 9 types of hotel rates that you can implement to boost revenue, better adapt to demand, and offer greater flexibility to your guests.

‍

Why should you offer multiple rate options at your hotel?

Offering different pricing categories allows you to respond more effectively to market demands and adapt to factors such as seasonality, guest profiles, and even direct competition. Moreover, diverse rate plans are a powerful tool for encouraging direct bookings, increasing guest loyalty, and boosting average spend per guest.

‍

9 Types of hotel rates to maximize revenue

1. Rack Rate

The rack rate is the full, undiscounted price of a room. It is the hotel’s official rate and is typically displayed on the website, brochures, or at the front desk. While it's rarely sold at this price, it serves as a reference point for calculating other discounted rates.

‍

Example:
A room priced at €120 per night as a rack rate might be discounted for promotions, loyalty programs, or early bookings.

‍

Advantages:

• Sets the baseline value for your product.
• Highlights the benefit of discounted rates to guests.

‍

2. Best Available Rate (BAR)

BAR is the lowest rate available at a given time and is often used as the featured price on direct booking channels and OTAs (Booking.com, Expedia, etc.). It’s typically adjusted daily based on occupancy and demand.

Example:
BAR may be €90 during weekdays and rise to €110 on weekends due to increased demand.

Advantages:

• Increases competitiveness.
• Encourages direct bookings.
• Can be used as the base for derived rates.
  
  

‍

3. Daily Rate

This involves setting different prices for each day of the week based on guest behavior and booking trends.

‍

Example:
Monday–Wednesday: €80

Thursday: €90

Friday–Saturday: €110

Sunday: €85

‍

Advantages:

• More accurate pricing.
• Capitalizes on specific peak demand days.
• Ideal for hotels with predictable weekly fluctuations.
  
  

‍

4. Non-Refundable Rate

Guests pay at the time of booking and are not eligible for refunds if they cancel. In return, the rate is usually lower.

‍

Example:
Standard rate: €100

Non-refundable rate: €90

‍

Advantages:

• Guarantees early revenue.
• Reduces cancellations.
• Attracts price-sensitive travelers.
  
  

‍

5. Last-Minute or Walk-In Rate

Rates aimed at guests who book on the same day or arrive without a reservation. The goal is to fill remaining rooms, even at lower margins.

‍

Example:
At 6 PM, if 5 rooms are still available, offer 20% off for bookings made by 9 PM.

‍

Advantages:

• Reduces loss from unsold rooms.
• Targets spontaneous travelers.
• Can be promoted via app push notifications.

‍

6. Package Deals

Rates that bundle the stay with additional services like meals, massages, parking, or activities.

‍

Example:
2 nights + romantic dinner + breakfast + late check-out = €260

(versus €300 if booked separately)

‍

Advantages:

• Increases perceived value.
• Enhances guest experience.
• Promotes internal services (F&B, spa, etc.).

‍

7. Corporate and Group Rates

Special pricing for businesses, agencies, or groups booking multiple rooms or frequent stays.

‍

Example:
Company X books 10 rooms/month → special rate of €75/night with breakfast.

Advantages:

• Provides stable, predictable revenue.
• Fills rooms during low season.
• Ideal for hotels in business districts or near event venues.

‍

8. Length of Stay (LOS) Rate

Offers progressive discounts for longer stays. Perfect for leisure travelers, digital nomads, or guests seeking a quieter, extended stay.

‍

Example:
1 night = €100

3 nights = €270 (10% discount)

7 nights = €600 (15% discount)

‍

Advantages:

• Reduces operational costs (housekeeping, laundry, etc.).
• Secures longer-term revenue.
• Increases loyalty and spend per guest.

‍

9. Early Booking Rate

Discount for guests who book weeks or months in advance. Helps forecast occupancy and cash flow.

‍

Example:
Booking 60 days in advance  → 15% discount
30 days in advance  → 10% discount

Advantages:

• Increases booking predictability.
• Secures revenue in advance.
• Appeals to organized, loyal travelers.

‍

How to optimize these rates

Effective rate management requires tools that allow real-time price adjustments based on market data, occupancy, and demand trends. A Channel Manager is essential in this process, enabling you to manage and update rates across multiple distribution channels (Booking Engine, OTAs, GDS, etc.) from a single platform. With integrated revenue management features, a Channel Manager helps automate rules, apply seasonal discounts, and adjust pricing based on demand—ensuring your rates stay competitive and aligned with market conditions.

‍

Conclusion

Offering a wide variety of rate plans is essential to maximizing your hotel’s occupancy and revenue. By tailoring prices to different guest needs—such as non-refundable options, early booking deals, or long-stay discounts — you can attract a broader range of clients and increase your average revenue per guest.

‍

Moreover, rate diversification allows you to respond more effectively to fluctuations in demand, such as seasonality or local events. With the help of revenue management tools, you can dynamically adjust pricing to ensure maximum profitability.

‍

In the end, a well-structured pricing strategy not only attracts more guests but also contributes to guest loyalty and direct bookings — both crucial for the sustainable growth of your hotel.