Hotel Revenue Glossary · Pricing

Package Rate

A bundled rate that combines the room with one or more additional services or amenities — such as breakfast, parking, spa credits, or event tickets — into a single price. Package rates can be opaque (guests see only the total) or itemized.

Why it matters: Package rates increase perceived value and can lift ADR by bundling high-margin services with the room. They also differentiate the offer from competitors, making direct price comparison more difficult and reducing the impact of rate shopping.

Worked example: Room-only sits at A$219. Bundle breakfast for two plus parking and sell it at A$269. Your incremental cost is A$16 a breakfast and A$8 for a bay you were not selling anyway, so A$40 of cost buys A$50 of rate: A$10 more contribution per room. On 34 packages a night that is A$340, and the guest cannot line your A$269 up against a competitor's A$239 room-only.

Common mistake: Bundling inclusions the guest was already buying. If 70% of your corporate guests pay A$28 for breakfast at the desk, folding it into the rate for a A$20 uplift turns A$28 of captured spend into A$20. You have discounted, carefully, and called it a package. Bundle what they are not already purchasing.

All glossary terms BAR (Best Available Rate) Ancillary Revenue Rate Fence