NAME : Bhaskar Das

ROLL NO : 26584921020

REGISTRATION NO : 212652484910026 OF 2021-22

SUBJECT NAME : Front Office Operations

SUBJECT CODE : HPM503

TOPIC : Report on Types of Room Rate

Bhaskar , Reporter , Times of India

5Th September 2023 , Kolkata , It has been observed that the
maximum revenue of the hotel is generated from the Rooms Division. Which can
be goes upto 70% of the total revenue. The room division consist of two main
department as Front Office & Accomodation Operations, so it is important that
to generate revenue a good allocation of Room Rate (RR) is allocated.

This report provides an overview of the various types of room rates commonly
employed in the hospitality industry. Room rates are a critical aspect of hotel
management and revenue generation, and understanding the different types is
essential for hoteliers to optimize revenue, attract diverse customer segments,
and maintain competitiveness.

Below we will talk about different type of Room rates :

1.Standard rate (RACK RATE)

The standard rate is also called a RACK rate. This is the price per room without
discounts or extras. It’s also the price shown on the website and the published
price list for the hotel. Think of creating at least two different kinds of RACK
rates: including and excluding breakfast.

2.Best available rate (BAR)

The best available rate, or BAR, is the most affordable rate that can be offered
to the guest. There are two types of BAR rates, a dynamic rate, or a daily rate.
3. Last-minute rate / Walk-in rate

The description says it all, this rate is for guests who book a room at the last
minute or at reception for that night. The rate is often lower than the standard
rate to stimulate last minute room sales. How much lower this rate is, is up to
the hotelier to determine.

4. Corporate rate

The corporate rates are for business guests who return regularly or add
significant value to the hotel. Look at businesses that drive volume to your
property and offer them a competitive price, exclusively for them.

5. Group rate

When large groups stay at your hotel, for meetings or conferences, there’s a
good chance that they’ll receive a group discount. Group travellers for leisure
can also receive a similar discount, for example, tour groups or weddings.
These agreements are not made directly with the guests, but with the travel
agencies, companies, or organisers.

6. Promotional rate

If you want to increase room sales during the low season, promotional rates are
excellent to use. Think of offers like “3 nights for the price of 2” or a free
breakfast.

In conclusion, the hospitality industry employs a variety of room rate types to

cater to the diverse needs and preferences of travelers. Effective rate
management is essential for optimizing revenue and ensuring a hotel's financial
success. By offering different types of room rates and adapting them to market
conditions, hotels can strike a balance between attracting guests and
maximizing profitability. Continuous analysis of market trends and guest
behavior is crucial for hoteliers to refine their pricing strategies and remain
competitive in this dynamic industry. Understanding and implementing these
room rate types is fundamental for successful hotel operations.