BAR Rate — Best available rate

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The Best Available Rate (BAR) is the lowest publicly available, unrestricted rate a hotel offers for a given date, before discounts or negotiated rates. BAR is the benchmark price shown across a hotel's direct and OTA channels, and the foundation of dynamic pricing - it moves up or down with demand.

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Definition

There is no universal definition. We have summarized the meaning for you in one sentence:

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What is the BAR rate? — Explanation

BAR stands for “Best Available Rate.” This is a flexible rate that is adjusted on a daily basis to current demand. This is done either by means of fixed price levels or dynamically, based on a price cap, and Price floor. The decisive factor is that they always the Best available rate represents for the customer. This is defined as the rate with the best”value for money“, i.e. with maximum flexibility and without Restrictions. It is therefore not to be confused with the cheapest rate. Instead, it has flexible rebooking and cancellation options, usually up to about 3 days before arrival. It can also be booked without restrictions or restrictions and can be viewed and booked publicly by every customer.

In this screenshot, you can see very well that the BAR is not always the cheapest rate. It is often called Flexible Rate or Flex Rate. In addition to this rate, there are other installments that have different conditions, such as the prepaid rate, i.e. an installment that is paid in advance and cannot be canceled.

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Frequently asked questions

What is the difference between BAR and rack rate?

Rack rate is the fixed, published maximum price. BAR is the lowest unrestricted rate available on a given date and moves up or down with demand.

How is the Best Available Rate set?

It is demand-driven: revenue managers (or an automated tool) raise BAR when demand is high and lower it when it is soft, using forecasts, pace and competitor rates.