Room tariffs

Recap from last time

1) European plan: Room only rate.2) Continental plan: Room rate and

continental breakfast.3) American plan: Room rent and all meals

(i.e., breakfast, lunch and dinner).4) Modified American Plan: Room rent +

Breakfast + One major meal.5) Bed & breakfast or Bermuda plan: Room

rate and American breakfast.

Recap

Factors affecting room tariff

Room tariff

Cost

Competition

LocationLevel of services

Target market

Rack rate Corporate rate Seasonal rate Advance purchase rate Week day/weekend rate Day and half day rate Group rate Tour group rate Travel agent rate Volume guarantee rate Crew rate Government rate Educational rate Membership rate Introductory rate Complimentary rate Crib rate Package rate

Types of rates

The standard rate of a particular type of room before any discount is called rack rate.

Rack rate

These are offered to companies, which give us frequent business.

These rates are not be revealed to other guests.

These rates are generally 10-20% less than the rack rate.

Corporate rate

These rates are used in many hotels where supply and demand of rooms varies daily.

We know it as Oberoi special rate.

Demand based rate or rate of the day

Travel agents sell travel products like hotel rooms, airline tickets etc.

Many travel agents have special contracted rates with hotels.

These rates are confidential and must not be reavealed to anyone. That means if the travel agent is paying the rate must not be printed on the registration form or the bill presented to the guest.

Travel agent rate

Thank you!