What is BAR?
BAR = Best Available Rate
The lowest unrestricted rate available to the general public for a specific room type on a specific date. It's your baseline rate from which other rates are derived.
How BAR Works
BAR is typically a flexible, refundable rate with no special conditions. It serves as the foundation for your rate structure:
Example: Rate Structure Based on BAR
| Rate Type | Relation to BAR | Example (BAR = ₹5,000) |
|---|---|---|
| BAR (Flexible) | Base rate | ₹5,000 |
| Non-Refundable | BAR - 10-15% | ₹4,250 |
| Advance Purchase (14 days) | BAR - 15-20% | ₹4,000 |
| Member Rate | BAR - 5-10% | ₹4,500 |
| Corporate Rate | Fixed below BAR | ₹4,000 (contracted) |
BAR Characteristics
- Flexible: Can be cancelled (with some notice)
- Public: Available to anyone - no membership required
- Dynamic: Changes based on demand, seasonality, events
- Unrestricted: No minimum stay, no advance booking requirement
- Transparent: Same rate on all channels (rate parity)
Where BAR is Used
| Use Case | Example |
|---|---|
| OTA Listings | BAR is your main flexible rate on Booking.com, MakeMyTrip |
| Direct Website | Show BAR with "Best Rate Guarantee" |
| Phone/Walk-in | Quote BAR to guests who call or walk in |
| Corporate Negotiation | "We offer 15% off BAR for your company" |
| Package Building | BAR + Breakfast + Spa = Package rate |
How to Set Your BAR
- Calculate costs: Know your cost per occupied room
- Check competitors: What are similar hotels charging? You can check competitor rates by star class and rating, so you compare against real rivals rather than every property nearby
- Consider demand: High demand = higher BAR, low demand = lower BAR
- Set seasonal rates: Different BAR for peak, shoulder, off-season
- Update regularly: Adjust based on pickup and market conditions
A BAR only earns money once it is published where guests actually search. If your property is not live on MakeMyTrip, Goibibo or Booking.com yet, a hotel OTA listing gets your rate into the market you are benchmarking against. Pair it with a direct booking website, the one channel where you control the displayed price from end to end.
Pro Tip: Set BAR slightly higher than your target ADR. This gives room for promotions, member discounts, and corporate rates while still hitting your revenue goals.
BAR vs Rack Rate
| BAR | Rack Rate |
|---|---|
| Dynamic - changes often | Static - published maximum rate |
| What guests actually pay | Legal maximum (rarely charged) |
| Based on demand | Based on tariff card |
| Shows on OTAs | Required by law in some places |
Dynamic BAR Strategy
Example: BAR Changes Throughout the Week
| Day | BAR | Reason |
|---|---|---|
| Monday | ₹4,000 | Low business demand |
| Tuesday-Thursday | ₹5,000 | Business peak |
| Friday | ₹5,500 | Weekend starts |
| Saturday | ₹6,500 | Leisure peak |
| Sunday | ₹4,500 | Transition day |
Common BAR Mistakes
- Static pricing: Same BAR all year = leaving money on table
- Undercutting yourself: Giving lower rates on one channel breaks parity
- No floor rate: BAR should never go below your cost + margin
- Forgetting to update: Old BAR for future dates can be too high or low
- Ignoring competitors: Your BAR should be competitive in your market
Free Service
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Get Your Free OTA AuditRelated Tools & Guides
Competitor Rate Analysis
See where your rate sits against matched hotels by star class
Rate Shopper
Monitor live competitor rates across OTAs without logging in
Rate Linkage Guide
Change one rate and update every OTA automatically
Rate Plans Guide
EP, CP, MAP and AP, and how to price each plan correctly
Frequently Asked Questions
What is BAR in hotel revenue management?
BAR stands for Best Available Rate. It is the lowest non-restricted public room rate a hotel offers at any given time. BAR changes dynamically based on demand, season, and booking lead time. It is the starting point for all other rate plans. Corporate rates, package rates, and OTA rates are often derived as a percentage of BAR.
What is rate linkage in hotels?
Rate linkage means that all your room rates. Corporate, OTA, discount. Are linked to your BAR as a fixed percentage or markup. When you change BAR, all linked rates update automatically. For example, if BAR is ₹4,000 and corporate rate is BAR minus 10%, it automatically becomes ₹3,600. Rate linkage prevents manual errors and keeps all channels consistent. See our full rate linkage guide.
How often should hotels change their BAR?
Hotels using dynamic pricing typically update BAR daily or even multiple times per day based on demand signals: booking pace, competitor rates, upcoming events, and remaining inventory. Hotels without a Revenue Management System (RMS) may update BAR weekly or seasonally. The more frequently you adjust BAR to match real demand, the more revenue you capture.
Is BAR the same as rack rate?
No. Rack rate is the maximum published rate a hotel charges: typically the highest price displayed at the front desk. BAR is the lowest publicly available rate at any moment. Rack rate rarely changes and is used as a reference ceiling. BAR fluctuates constantly with demand and is what most guests actually pay when booking online.
Can guests always book at BAR?
Yes, BAR is a publicly available rate with no restrictions. Any guest can book it without needing a loyalty membership, corporate account, or promo code. This is what distinguishes BAR from restricted rates. However, BAR can rise sharply during high-demand periods, so the 'best available' rate may still be expensive.