Hotel Revenue Glossary · Segmentation

Military Rate

A discounted rate offered to active-duty military personnel, veterans, and their families. Military rates may be tied to per-diem allowances or offered as a flat discount off BAR as a goodwill gesture and demand-generation tool.

Why it matters: Military rates build goodwill and capture a loyal guest segment. Properties near military installations may depend on this business for base occupancy. Like government rates, the key is managing the discount level to ensure it does not displace more profitable demand.

Worked example: Two ways to build the same plan. At 12% off BAR, a A$210 Tuesday sells at A$184.80 and 22 military nights a month bring A$4,065.60. Set it as a flat A$169 instead and that Tuesday gives away A$41 rather than A$25.20 — A$15.80 more per night, A$347.60 a month. Worse, on a A$150 Sunday the flat rate sits above BAR, so the guest books the public rate and the plan does nothing at all.

Common mistake: Leaving the military plan open on public-holiday long weekends near a base. Those are the dates the segment travels in volume and the dates you least need the discount. A plan that never closes stops being a demand tool and becomes a permanent rate cut for guests who would have paid BAR.

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