There are various types of hotel rates. They are categorized based on their target audience, flexibility, and treatment. These rates are sold through third-party contacts, such as tour operators or travel agencies. These intermediaries often increase the rates before they reach the end consumer, a process known as markup. This markup is equivalent to a percentage of the profit. In many cases, the rates are not refundable.
Non-refundable rates
A non-refundable hotel rate requires guests to pay in full for the reservation even if they decide to cancel, modify, or no-show. These rates reduce cancellations and guarantee payment on reserved rooms. Then, check the calendar for Non-Refundable Rates. Sometimes, you may need to perform additional steps to map the rate type to your channel manager.
If you’re booking in advance at Priceline, looking for a non-refundable hotel rate is a good idea. These can save money, but you should be aware of the risks. Many times, non-refundable rates can be as much as 9.5% cheaper than flexible rates. In such cases, it’s better to go with adjustable rates.
Flexible rates
The “flexible” and “standard” hotel rates differ only in their cancellation policies. Flexible rates allow you to cancel your reservation for any reason without incurring any penalties. However, cancellation policies for Flexible rates vary from hotel to hotel, so make sure you understand the cancellation policy terms before booking. The “standard” rate requires you to pre-pay your entire stay, which is not flexible. Flexible rates are available for bookings that can be canceled up to a day before your arrival.
The flexibility of rates comes in handy when you want to cancel your reservations in advance. Many hotels are flexible enough to let you change your plans anytime. The flexibility of flexible rates means you can cancel your reservation and receive full reimbursement.
Early bird rates
Early bird hotel rates are discounts that apply to reservations made at least a week before arrival. The discount should be lower than other discounts offered during the registration period. It is a good practice for seasonal products and services as it is a great way to boost profits during slow times. However, you must note that this promotion is only available to those who book early. So, how do you choose the right early bird offer? It would be best if you made your booking five days before the show begins to get the rate. You must make full payment at the time of booking. In addition, reservations made with the Early Bird Rate are not amendable or refundable. If you are dissatisfied with the rates, you should book another hotel for your stay. You will get a discounted rate if you book a hotel through the official housing bureau.
Post-pay rates
A post-pay rate is one in which a credit card is required to reserve a room. You do not pay upfront for this reservation but are charged when you arrive. Then, at check-in, you place your credit card down. You can change the card you used for the reservation if you like. However, it’s recommended that you use the card that you will use to pay for the room.
The pre-pay rate is usually cheaper, but you may face certain restrictions. If you have a credit card for the company, it’s a good option because you can submit your reimbursement immediately. The pre-pay rate also means you’ll need to present your card at check-in, and incidentals are charged later. However, check whether this rate is refundable or non-refundable. Pre-pay hotel rates are the most common type of hotel reservation.
