Hotel Revenue Glossary · Pricing

Corporate Rate

A rate negotiated for eligible travellers from a specific company under agreed booking, availability, and contract terms. It may be fixed or dynamic and may sit below, at, or above the public rate by date; a volume target or preferred relationship does not guarantee realised room nights.

Why it matters: Corporate accounts can create a more predictable base of business, but value depends on realised room nights, net rate, day-of-week pattern, cancellation and no-show behaviour, rate-access terms, servicing cost, and displacement. Compare account-level actuals with the agreement before renewal.

Worked example: An account signs at A$179 LRA with a 900-night target. It delivers 612 nights, 434 of them Monday to Wednesday. Nights where BAR would have sold anyway: 148, at an average A$236 — that is 148 × (236 - 179) = A$8,436 of displacement. The other 464 nights are incremental at A$179 = A$83,056. Net contribution A$74,620 before servicing cost. Renew on those 612 realised nights, not on the 900 in the agreement.

Common mistake: Ranking accounts by contracted volume at renewal instead of realised room nights. A 900-night commitment that produced 612 nights, concentrated on the three days you were already full, is worth less than a 300-night account that fills Sunday. Pull the actual production by day of week before the rate conversation starts.

All glossary terms BAR (Best Available Rate) Rack Rate Rate Fence