Hotel Revenue Glossary · Pricing

Opaque Rate

A discounted rate sold through a channel that hides the hotel's identity until after the booking is confirmed and paid. Opaque channels like Hotwire and Priceline allow hotels to sell distressed inventory without publicly advertising the low rate.

Why it matters: Opaque rates allow hotels to fill rooms at deeply discounted prices without undermining their public rate structure. Since the hotel name is hidden, the discounted rate does not create rate-parity issues or erode brand positioning.

Worked example: Nineteen rooms are still open at 8pm on a 150-room house selling at A$189 publicly. Opaque clears twelve of them at A$104 net. That is 12 x A$104 = A$1,248 you would not otherwise have taken, against roughly 12 x A$34 = A$408 of servicing cost, so A$840 of contribution. Your published A$189 never moved, and tomorrow's corporate arrival never sees A$104.

Common mistake: Reaching for opaque early in the booking window. It is a last-room, last-day tool. Open it three weeks out and you sell at A$104 the rooms an A$189 booker would have taken on day nineteen. Write the rule down, such as inside 48 hours and below a stated occupancy, and let the rule decide.

All glossary terms Distribution Channel Rate Parity Need Period