Hotel Revenue Glossary · Distribution

Best Rate Guarantee (BRG)

A hotel policy defining how eligible public-rate comparisons are assessed and remedied on direct channels. Coverage, exclusions, taxes, fees, room and rate comparability, claim timing, and remedy depend on the published terms and applicable requirements.

Why it matters: A clear and honoured rate-guarantee policy may reduce price concern for eligible shoppers. Measure claim handling, total-price parity, conversion, channel substitution, fulfilment cost, and contribution; it does not eliminate comparison behaviour or guarantee a higher-margin shift.

Worked example: Your policy refunds the difference plus 10% of one night. A guest produces A$189 against your A$205: you refund A$16 plus A$18.90, so A$34.90, and the booking nets A$170.10. Nine claims in a month costs A$314. Commission on the same nine bookings had they come through an OTA is 9 x A$205 x 15% = A$276.75. On these numbers the policy costs A$37 more than it saved, which is why you log claims rather than assume.

Common mistake: Comparing a bare room rate to the guest's screenshot. The claim turns on comparability — same room type, same dates, same cancellation terms, same inclusions, same total price including taxes and fees. A non-refundable A$189 twin is not your flexible A$205 king, and paying that claim teaches guests to keep hunting.

All glossary terms Direct Booking Rate Parity OTA (Online Travel Agency)