Definition: What Does Best Available Rate Mean?
Best Available Rate (BAR) is a common term in the hotel industry, referring to the lowest rate offered for a specific room type.
If you want to book a hotel room, you can find the Best Available Rate (BAR) through a hotel’s website, Online Travel Agents (OTAs), or other booking platforms. These rates are available to everyone and don’t require payment upfront. However, there may be penalties if you cancel or make changes under the hotel’s cancellation policy.
The BAR rate is a crucial part of a hotel’s revenue management strategy, as it adjusts to the current demand on a daily basis. This pricing strategy considers factors such as location, time of year, and value to determine the lowest possible price that still makes a profit.
Hotels use different rate strategies, like breakfast, corporate, promotional, and package deals. The best available rate (BAR) strategy is designed to promote transparency and loyalty among guests by offering the best available rate directly from the property manager.
This approach benefits property managers and guests, as it encourages direct bookings and eliminates discrepancies between the rates on the hotel’s website and those offered by third-party booking sites.
Origin of the Term
Best Available Rate (BAR) originated in the hotel industry, inspired by the airline industry’s pricing approach. BAR is the flexible and best available rate for customers, changing daily based on demand. It allows you to book hotel rooms without special privileges and is often available to the general public. Hotels use BAR to offer the best rates and stay competitive.
Synonyms and Antonyms
As you navigate the world of hotel prices, you may encounter various terms that mean similar things. Here are some common synonyms for “Best Available Rate (BAR)”:
- Best prices
- Best rates
- Top rates
- Better prices
- Superior rates
On the other hand, knowing the antonyms of “Best Available Rates” can be helpful. Some opposite terms include:
- Worst rates
- Lowest quality rates
- Inferior rates
As a property manager, you can consider applying these pricing strategies to attract more interest in your listings.
- Day-based rates: BAR can have a fixed price based on the day of the week. For instance, a hotel might offer a lower BAR on weekdays to encourage bookings and a higher BAR on weekends when demand is typically higher.
- Occupancy-based rates: Some hotels adjust their BAR as occupancy increases. For example, when the hotel occupancy is 0-20%, they offer BAR rate 1, for 20-40% occupancy, BAR rate 2, and so on. The prices increase as occupancy rises, encouraging early booking for lower rates.
- Seasonal rates: Hotels often adjust their BARs according to the season. During peak seasons with high demand, the BAR may be higher, while in low seasons, the hotel could offer lower BARs to attract guests.
The best available rate for a property can change depending on the day, how many people are staying, and the time of year. Therefore, it’s important to consider these factors when booking a stay to ensure you get the best rate possible for your travel dates.
Bleisure: This term combines ‘business’ and ‘leisure’, describing a travel trend where you extend your business trip to enjoy leisure time.
Best Rate Guaranteed (BRG): Often used interchangeably with BAR, BRG ensures you get the best rate available when booking. This may depend on booking channel, room type, or booking conditions.
Dynamic Pricing: It’s a pricing strategy that adjusts room rates in real-time based on demand, competition, and other external factors. This ensures you will be charged the most appropriate rate at any given time.
Online Travel Agents (OTAs): These are third-party booking websites like Expedia, Booking.com, or Kayak. They offer comparison tools, making it easy to find the best room rate for your stay.