The Best Available Rate (BAR), also known as Best Flexible Rate, is a cornerstone of modern hotel pricing strategy. It serves as the reference point for all other room rates, influencing how hotels present their value proposition, manage revenue, and respond to market demand. Understanding BAR is critical not just for revenue managers, but for all professionals involved in pricing, marketing, and reservations in the hospitality industry.
BAR (Best Available Rate): The lowest public, flexible rate available for booking on a given day.
What Is BAR?
Best Available Rate (BAR) refers to the lowest publicly available rate that a guest can book without restrictions (such as prepayment or minimum stay requirements) on a specific date. It is typically flexible, meaning it can be cancelled or modified without penalty within a certain period.
BAR is not fixed. Instead, it fluctuates based on market conditions—including supply and demand, local events, competitor rates, and historical booking data. It often serves as the anchor rate from which all other rate types (e.g., corporate rates, OTA promotions, or packages) are derived.
History and Emergence of BAR
BAR was introduced in the early 2000s, as part of the broader movement toward transparency and consistency in online pricing. With the rise of Online Travel Agencies (OTAs) and direct booking channels, hotels needed to establish a public-facing rate that:
- Would comply with rate parity agreements
- Serve as a benchmark for promotions and discounts
- Reflect real-time market positioning
Before BAR, pricing was more opaque. Hotels used to rely heavily on seasonal rate plans or negotiated contracts. BAR helped move the industry toward real-time dynamic pricing.
Why BAR Matters
- Guest Confidence
Guests are more likely to book when they believe they are getting the best rate available without needing to shop around extensively. - Rate Parity Management
BAR simplifies rate parity management by giving all channels a common starting point. - Revenue Optimization
BAR forms the foundation for revenue management tools, allowing hotels to adjust pricing while maintaining structure and consistency. - Flexible Benchmarking
BAR allows hoteliers to benchmark against competitors and market demand using tools like STR, OTA Insight, and RateGain.
How BAR Is Set and Adjusted
Hotels typically use revenue management systems (RMS) or manual decision-making to set BAR based on:
- Occupancy forecasts
- Competitor pricing
- Historical data
- Events and seasonality
- Booking pace
Open pricing models may also allow hotels to adjust BAR without rigid constraints, meaning the BAR for one date might be drastically different from another—even within the same season or week.
Variations and Extensions of BAR
| Term | Description |
|---|---|
| BAR by Length of Stay (LOS) | Offers different BARs depending on how many nights the guest stays. Common in resorts or during events. |
| BAR by Occupancy | Higher occupancy may drive BAR upward; low demand may trigger BAR reductions. |
| BAR by Segment | While BAR is public, variations (like corporate BARs) may be offered based on negotiated agreements. |
| Mobile BAR | Offered only to users booking via mobile devices, optimizing for conversion. |
BAR vs. Other Pricing Models
| Model | Main Difference from BAR |
|---|---|
| Fixed Pricing | Does not change based on demand; BAR is dynamic. |
| Discounted Rates | Offered at a lower price than BAR, often with restrictions. |
| Opaque Rates | Shown without hotel name until booking (e.g., Hotwire); BAR is fully transparent. |
| Open Pricing | Rates can move independently across all channels and segments, while BAR serves as a consistent public-facing rate. |
Common Myths About BAR
- “BAR is always the cheapest rate.”
Not necessarily. Other rates (non-refundable, member-only) can be lower. - “BAR is fixed for a season.”
BAR is dynamic and may change several times a day depending on market activity. - “BAR is the same across all hotels.”
No—each hotel defines and adjusts its own BAR independently.
Tips for Using BAR Effectively
- Use BAR as a base rate and build promotions, packages, or fences around it.
- Maintain rate integrity across distribution channels to avoid customer confusion.
- Monitor competitor BARs daily, especially during high-demand periods.
- Consider offering direct booking incentives tied to BAR (e.g., free breakfast or late check-out).
Conclusion
BAR is more than just a rate—it is a strategic tool for communicating value, managing revenue, and competing in a dynamic hospitality landscape. Its flexibility and transparency make it a preferred pricing structure in the era of digital bookings and data-driven decision-making. To succeed in today’s market, hotels must understand how to manage BAR thoughtfully, monitor it continually, and integrate it into their broader pricing ecosystem.
References / Further Reading
- Kimes, S. E. (2004). Revenue Management: A Retrospective. Cornell Hospitality Quarterly.
- Cross, R. G. et al. (2009). Revenue Management’s Renaissance. Cornell Hospitality Quarterly.
- Hayes, D. K., & Miller, A. A. (2016). Revenue Management for the Hospitality Industry. Wiley.
- STR Global Reports (2023).
- OTA Insight Blog: https://www.otainsight.com/blog
- Hospitality Net: https://www.hospitalitynet.org
- Duetto: https://www.duettocloud.com
Glossary
- BAR (Best Available Rate): The lowest public, flexible rate available for booking on a given day.
- Rate Parity: Agreement to offer the same rate across all booking channels.
- Revenue Management System (RMS): Software that helps hotels analyze demand and set optimal prices.
- Open Pricing: A pricing model where rates can be adjusted independently without a set base rate.
- Rate Fences: Booking conditions (e.g., non-refundable, advance purchase) that justify price differences.
- Dynamic Pricing: Continuous price adjustments based on supply, demand, and competition.
- Opaque Pricing: Booking method where the hotel brand is hidden until after purchase.
- Mobile Rate: Special rate available only to guests booking via mobile device.
Reza Karbaschian 
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