Distribution
What is a rate plan?
A rate plan is a price for a room type together with its conditions: what is included, such as breakfast, and the rules that apply, such as the cancellation policy, payment terms and minimum stay. One room type usually has several rate plans, and the guest chooses between them.
Common rate plans
Most hotels offer a mix of these:
- Best available rate: the standard flexible rate for the day
- Non-refundable: a discount in exchange for payment up front
- Meal plans: room only, with breakfast, or with more meals
- Corporate and travel-agent rates: negotiated prices for specific accounts
- Packages and promotions: for seasons, long stays or events
Derived rates
Maintaining every plan by hand is slow and causes mistakes. A derived rate is calculated from a parent rate, for example the non-refundable rate at 10% below the best available rate. Change the parent, and every derived plan follows.
In StaySynq
StaySynq supports derived rate plans and maps each rate plan to its counterpart in your channel manager.
Common questions
What is the difference between a room type and a rate plan?
A room type is what the guest stays in, such as a deluxe double. A rate plan is the price and conditions it is sold under. Each room type can have many rate plans.
Related terms
- BAR (best available rate)BAR, or best available rate, is the lowest rate a hotel offers to the general public for a given date without restrictions such as prepayment or a minimum stay. It changes with demand, and most other rate plans are set as a discount or premium to it.
- Rack rateA rack rate is the full published price of a hotel room, before any discount, package or negotiated rate. Few guests pay it, but it acts as the reference point from which corporate, promotional and OTA rates are discounted.
- Meal plans (EP, CP, MAP, AP)Hotel meal plans describe which meals are included in the room rate. EP (European Plan) is room only. CP (Continental Plan) includes breakfast. MAP (Modified American Plan) includes breakfast and one main meal. AP (American Plan) includes breakfast, lunch and dinner.
- Minimum length of stay (MLOS)Minimum length of stay (MLOS) is a booking restriction that requires a reservation to cover at least a set number of nights. Hotels apply it on high-demand dates, so that a one-night booking on the busiest night doesn't block a longer, more valuable stay.
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