Hotel Revenue Glossary · Pricing

Floor Rate

A documented lower price boundary for a defined room, rate, date, or decision context. Set it from relevant avoidable cost, channel terms, tax, service capacity, contract, displacement, cash, brand, and governance—not a universal CPOR-plus-margin rule.

Why it matters: A governed floor can reduce unreviewed discounting, but a breached threshold does not automatically prove a loss because cost scope, incrementality, cash, contract, and strategic value vary. Record authority, rationale, outcome, and review triggers.

All glossary terms Hurdle Rate CPOR (Cost Per Occupied Room) BAR (Best Available Rate)