Hotel Revenue Glossary · Pricing

Hurdle Rate

The minimum acceptable room rate for a given date, below which a booking should not be accepted. Hurdle rates are set by the revenue management system based on demand forecasts and are raised or lowered dynamically as demand builds or weakens.

Why it matters: Hurdle rates automate the rate-floor decision that protects against selling rooms too cheaply. On high-demand dates the hurdle rate rises, ensuring discounted segments are closed out. On low-demand dates it drops, allowing lower-rated bookings to fill otherwise-empty rooms.

All glossary terms Floor Rate BAR (Best Available Rate) RMS (Revenue Management System)