Best Available Rate (BAR)
Best Available Rate (BAR) Explained
Best Available Rate (BAR) is the lowest publicly available price for a specific room or vacation rental on a given date. BAR typically updates in real time based on demand, seasonality, and market conditions to stay competitive while protecting revenue.
Definition
BAR is a cornerstone of hospitality pricing. It’s the publicly viewable rate that guests can book via your direct site, OTAs, or call center on a given date and occupancy. Unlike fixed rates, BAR is dynamic and may differ by day of week, season, or lead time.
Origin of the Term
The concept grew out of airline-style yield management. Hotels adopted BAR to publish a single best public price per date while retaining flexibility to move rates with demand and to layer fenced discounts (e.g., members-only) against a clear reference point.
How BAR Works
- Dynamic inputs: demand, compset pricing, seasonality, events, and pickup trends.
- Calendar-based: BAR is set per date and can vary by day of week and stay length.
- Public reference: other offers (e.g., loyalty or promo) are often expressed as a percent off BAR.
- Rate parity: many operators aim to keep BAR consistent across channels to build trust and avoid undercutting.
BAR is most effective when paired with dynamic pricing rules, inventory controls, and season-specific strategies.
Common BAR Strategies
Day-Based BAR
Lower midweek to stimulate demand; higher on peak weekends or holidays.
Occupancy-Based BAR
Raise thresholds as occupancy climbs (e.g., at 40%, 60%, 80%) to protect remaining inventory value.
Seasonal BAR
Push higher in peak seasons; offer value in shoulder/low seasons to maintain occupancy.
Length-of-Stay (LOS) BAR
Offer discounts for 5+, 7+, or 14+ nights while keeping the public daily BAR as the reference.
Why BAR Matters
- Clarity for guests: a transparent reference price builds trust and supports conversion.
- Revenue control: aligns with revenue management to capture peak demand and stimulate soft periods.
- Channel strategy: supports parity and avoids destructive undercutting between direct and OTA channels.
- Benchmarking: simplifies internal comparisons against your compset’s public prices.
Implementing BAR
- Set guardrails: define floor/ceiling prices by season and property type.
- Map triggers: tie BAR movement to pickup, occupancy bands, events, and lead time.
- Enforce parity: align BAR across channels; use fenced offers for loyalty/direct perks.
- Monitor KPIs: track ADR, occupancy, and RevPAR to validate performance.
- Review feedback: ensure guest value perception (price vs. experience) remains strong.
Operator note: Use your PMS/Channel Manager rules to automate BAR updates, and review exceptions daily during peak periods.
Examples
Day-Based Rates
A lakefront cottage prices BAR at a value midweek to boost occupancy, then increases BAR Friday–Sunday to match weekend demand.
Occupancy Thresholds
At 0–40% occupancy, BAR stays at the base level; at 40–70%, BAR steps up; above 70%, BAR escalates to protect last-available inventory.
Seasonal Adjustments
Summer holiday weeks publish a higher BAR; autumn shoulder season lowers BAR and adds LOS discounts to keep calendars full.
Synonyms and Related Concepts
Quick FAQs
Is BAR always the same as my direct-site price?
Often, yes—operators strive for parity. Direct channels may layer fenced perks (e.g., member rate, free parking) on top of BAR to encourage booking direct.
Can BAR differ by length of stay?
Yes. The public daily BAR is the reference, but total price can reflect LOS discounts while still maintaining a clear BAR per night on the calendar.
How does BAR interact with promotions?
Promos typically reference BAR (e.g., “15% off BAR”), preserving rate integrity and making offers easy to compare.
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