LRA Last Room Availability – this glossary is about this “last room rate”. There are also other industries that use the abbreviation LRA: Liquidity Risk Assessment and many others. But of course we do not consider this here.
Definition
First the definition – quite soberly:
Last Room Availability (LRA).
The (company) rate for the last available (hotel) room (regardless of the available category).
The LRA has the greatest significance for corporate contracts. Here, the hotelier guarantees the contract customer that he will give him the last available room at the agreed corporate rate. The contracts are concluded either by the hotelier directly or by the revenue manager with the companies/customers.
However, today there are also some online booking platforms that insist on a provision regarding LRA in their contracts with hotels.
Related terms
NLRA is the opposite: it is an agreement between a hotel and a customer whereby the negotiated rate is only available to travellers at the discretion of the hotel. This means that hotels can block NLRA rates during peak periods and charge a higher price to maximise their revenue.
LRTA: Last Room Type Availablity. Here, the hotel can promise the customer availability at the contract rate up to the last room of a certain category.
Opportunities and risks
As many contract partners consider LRA important, the hotelier has the chance to offer a rate with LRA higher than without LRA (NLRA). This also applies, for example, when seasonal occupancy is good. This is because he keeps a certain contingent for this customer and guarantees the rate at the agreed price.
But of course it also means that the hotel can no longer make the booking decision 100% independently. The last available room must go to the room-seeker with a contract. For this, the hotel can not sell the room at a higher price to a walk-in or via the hotel’s own website.
Of course, it must also be ensured that when the last room has been sold – whether with an LRA or NLRA price – the availabilities in the booking channels are adjusted.
