Best Available Rate (BAR)
What is Best Available Rate (BAR)?
Best Available Rate (BAR) is a pricing strategy used by hotels to offer guests the most competitive rate without requiring advance bookings or special discounts. Unlike fixed corporate rates, BAR fluctuates daily based on factors like occupancy, demand, and seasonality.
This rate model benefits both travelers and businesses by ensuring access to the lowest non-restricted rate at the time of booking. Hotels use BAR to maximize revenue while providing flexibility for guests who prefer last-minute bookings.
For corporate travel programs, understanding BAR helps businesses negotiate better contracts with hotels and optimize travel budgets. By leveraging BAR-based rates, companies can balance cost savings with traveler convenience.
Examples of Best Available Rate (BAR) in Corporate Travel & Expense:
1.
Dynamic Pricing for Corporate Travel: A company books hotel rooms based on BAR rather than a fixed rate, securing lower prices during off-peak seasons.
2.
Negotiated BAR Discounts: Businesses partner with hotels to receive a percentage discount off BAR instead of a fixed rate, ensuring cost-effectiveness.
3.
Flexible Hotel Bookings: Employees traveling for last-minute meetings book accommodations at the lowest available rate without requiring pre-negotiated rates.
Frequently Asked Questions About Best Available Rate (BAR)
1.
How does BAR differ from a negotiated corporate rate?
BAR fluctuates based on demand, while corporate rates are fixed and pre-negotiated for a specific period.
2.
Can BAR be lower than a corporate rate?
Yes, during off-peak times, BAR may be lower than fixed corporate rates, offering additional savings.
3.
Are BAR rates refundable?
It depends on the hotel's policy. Some BAR rates are flexible, while others may be non-refundable.
4.
How do businesses benefit from BAR in travel management?
Companies can optimize hotel expenses by choosing the lowest available rate and negotiating additional discounts.
5.
Should businesses rely only on BAR for corporate hotel bookings?
A mix of BAR and negotiated rates ensures cost efficiency while maintaining flexibility for travelers.