What is the meaning / definition of Fenced Rate in the hospitality industry?

The term Fenced Rate refers to reservations that offer certain benefits for bookers: under some conditions and requirements.

Lots of variables can determine a hotel’s room rates for rooms. When segmented into Fenced Rates, the process of rate-setting becomes a lot simpler.

Types of Fenced Rates can include:

  • Non-refundable reservations
  • Non-cancellable reservations
  • Advanced purchase reservations

By setting Fenced Rates, a hotel can often sell more rooms in advance. For guests who accept Fenced Rates when reserving rooms, there can be advantages — such as reduced prices for in-house services and activities.

Note: Guests are not forced to accept these restrictions, but their rate is determined by which (if any) Fences they accept.

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