Hotel Revenue Glossary · Pricing

Last Room Availability (LRA)

A contract clause guaranteeing a corporate client access to their negotiated rate as long as the hotel has any room available for sale, even on the last room. LRA prevents the hotel from closing out the corporate rate during high-demand periods.

Why it matters: LRA clauses represent a significant revenue management constraint on high-demand nights. When a corporate client has LRA at $149 and BAR is $259, the hotel must honor the lower rate on any available room. This makes LRA negotiations a critical component of corporate contracting.

Worked example: An account holds LRA at A$165. On a compression Wednesday BAR reaches A$289 and you sell your last 14 rooms, 9 of them to that account. The clause cost 9 × A$124 = A$1,116 on one night; across 11 such nights a year, A$12,276. The same account produced 480 nights at A$165, or A$79,200. Both numbers are real, and the renewal question is whether A$12,276 buys enough of that A$79,200 to be worth writing again.

Common mistake: Signing LRA without a ceiling clause or a blackout list. LRA and dynamic pricing pull in opposite directions on exactly the nights that matter, and the clause runs for the whole contract term. Negotiate named blackout dates, a rate ceiling, or LRA on a room-type subset — and price the concession before you concede it.

All glossary terms Corporate Rate BAR (Best Available Rate) Compression Night