In this lexicon entry you will learn what the BAR rate is and how to use it correctly.
Definition Best Available Rate
There is no universal definition. We have summarised the meaning for you in one sentence:
What is the BAR Rate? – Explanation
BAR stands for “Best Available Rate”. It is a flexible rate that is adjusted to the current demand on a daily basis. One does this either by means of fixed price levels or dynamically, by means of a price ceiling and price floor. The decisive factor is that it always represents the best available rate for the customer. This is defined as the rate with the best “price-performance ratio”, i.e. with the highest 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. In addition, it can be booked without restrictions or limitations and can be viewed and booked publicly by any customer.
Best available rate
In this screenshot you can see very well that the BAR is not always the cheapest rate. The name can also be Flexible Rate or Flex Rate. In addition to this rate, there are other rates with different conditions, such as the prepaid rate, which is paid in advance and cannot be cancelled.
Role of the BAR
The BAR is the basis of the first rate structure. The other rates, such as the corporate rate or the non-cancellable rate, are derived from it. This is usually also done dynamically through percentage or fixed mark-ups and mark-downs.
We have created a separate encyclopaedia article on this, in which you can find out how to build up your rate structure. By the way, this article also contains an Excel spreadsheet for free download, which you can use to easily set up your rate structure.
At happyhotel you can configure your rates in a way that all rates automatically depend on your BAR. This is practical because you can be sure that your rate structure is automatically maintained. This way you can adjust all rates to the current demand with one click.