Hotel Revenue Glossary · Pricing

Rate Fence

A qualification requirement that separates different rate levels. Examples include advance purchase requirements, non-refundable conditions, minimum length of stay, or membership in a loyalty program.

Why it matters: Rate fences allow hotels to offer different prices to different segments without cannibalizing higher-paying demand. A guest willing to commit to a non-refundable rate gets a lower price; a guest wanting flexibility pays the full BAR.

All glossary terms BAR (Best Available Rate) Market Segment ADR (Average Daily Rate)