8 Common Rate Plans used by hotels in 2023

Whether your hotel is located in the heart of the city area, near the beach or even situated on a hill surrounded by lush forests, having a good pricing strategy would definitely affect your hotel’s revenue. It is very important to sell the room at the right price at the right time. For this, we have compiled a list of Common Rate Plans in hotels that can be used by you in order to have attractive rates to offer to your potential customers. 

Before that, what is a Rate Plan in Hotel?

A Rate Plan is defined as a set of prices from which the guest can choose and allows hotels to sell the same room in different ways. In another word, the same room type can be sold at a variety of rates with different offers or packages. Let’s check out Rate Plans that are commonly used by hotels. 

8 Common Rate Plans used by hotels in 2023

  1. Best Available Rate (BAR)

    BAR stands for Best Available Rate and is the most commonly known in the hotel industry. The BAR normally does not include breakfast charges or any other surcharges. It is basically the lowest price rate for a particular room type at that date offered by a hotel for the guest.

    The BAR pricing will depend on the following factors which are:

    - Occupancy rate
    - Season
    - Events

    There are two types of BAR which are Daily BAR and Dynamic BAR. Daily BAR is a predefined rate regardless of the room category and occupancy. The BAR is set according to the daily room forecast whereas, Dynamic BAR is not a predefined rate system. It is set according to the hotel’s occupancy. For example, when the occupancy reaches a certain level, the system will automatically trigger the BAR for that level. 

  2. Length of Stay (LOS)

    Lengths of Stay (LOS) normally require the guest to book a certain minimum number of nights. This strategy can encourage the guest to stay for a longer period and enjoy a lower daily rate, especially during the low season to increase occupancy. 

    Other than this, you can also restrict bookings to a minimum amount of nights for example 3 nights so that you can keep the rooms occupied without lowering the rates, especially during peak season. 

  3. Early Bird

    An early Bird rate is also known as an advance purchase rate plan. This rate plan gives a special rate to the guest if they make a reservation in advance based on the date and time set by the hotel. 

    For example, your new hotel runs an early bird rate for the opening celebration. You offer a special 50% discount on your hotel website for the guest who books 2 months in advance within the given period.  You can also set this rate plan offers for the check-in date between 1st May to 19th May, for example. 

  4. Non-Refundable

    A non-refundable rate plan is a type of rate plan that can guarantee revenue to the hotel. It is attached together with the non-refundable policy that offers a cheaper rate to the guests. No matter what situation the guests are in, once the booking has been made and paid, they are not allowed to cancel and are not eligible for a refund. 

  5. Last-Minute Discount

    A last-minute discount rate plan is one of the ways to get the opportunity to increase room occupancy. Offering the last-minute deal is beneficial to guests as well as they can book the room at a cheaper rate. However, the last-minute discount rate plan is not relevant during peak season. 

  6. Government / Student Rate 

    Government rate or student rate plans require guests to present a valid ID in order to enjoy this special rate. It is a dedicated rate plan offered especially to government employees (Government Rate) or for students (Student Rate). Not all hotels have this specific rate. If your hotel does not have this rate plan now, I would suggest considering creating this rate plan if and only if your hotel keeps receiving a request for this kind of rate or your hotel. With government or student rate offers, your hotel will have more potential to be famous among this group. 

  7. Membership Rate

    A Membership Rate can only be enjoyed by guests who have registered to become members of the hotel.  Normally hotels will offer more unique perks and rewards to the members to make them feel appreciated and retain them as loyal customers. Thus, having a specific membership rate is one of the good strategies to provide value to their exclusive members. 

  8. Room with Breakfast

    Room with Breakfast Rate Plan is another common type of rate that is used by the hotel if they do provide a breakfast service or have an in-house restaurant. The hotel will generally package the room charges together with the breakfast and it is the most popular option among family or business travellers. Generally, for a Standard Room that can accommodate 2 pax, the breakfast package also includes 2 pax.

Top 3 Most Popular Rate Plans Offered in Hotel Booking Engine 

Hotel Direct Booking Engine has become a top choice among hoteliers to attract potential customers to make online bookings. Many hotels prefer direct booking because it is available 24/7 and convenient for the guest to reserve the room anytime they want, plus many hotel booking engine providers outside there are offering Commission-Free Booking Engine thus helping hotels to reduce the commission paid to OTAs and maximize revenue. 

Below are the top 3 choices of Rate Plans offered in the hotel booking engine. 

1) Room with Breakfast
2) Best Available Rate 
3) Non- Refundable Rate

Blog - Common Rate Plans in Hotel  (1)

Above are examples of Rate Plans created through Softinn Booking Engine. Interested to explore on them? Let’s try here. 


Every rate plan created and offered must have a purpose. Hence, creating the right rate plans will help in terms of generating more bookings, attracting new customers, and retaining existing ones, thus boosting your hotel’s revenue. 

Besides that, it is also important to know your target audiences and identify the market’s demand so that you can design a successful rate plan for your hotel. 

Finally, take your time to measure the performance of each of the rate plans that you have offered so that you know which one you should continue to offer and which one is not giving you good value and stop offering them. 

You're reading a blog compiled by Softinn. We're a hotel-technology company with the mission to make hotelier work easier. Do subscribe if you enjoy reading our blog or you may interact with us on our Facebook Page.

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