Group Rate

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Group Rate

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

Hotels that frequently accept bookings from groups can offer reservations at a specially negotiated rate. This is called a Group Rate.

You might be wondering how many people (and therefore how many total rooms!) are involved for a booking to be categorised as a 'group booking'? Well, the answer is usually five rooms or more. It is quite rare that a hotel will accept a group booking, and therefore offer a reduced Group Rate, for less than five rooms.

Group Rates are beneficial for both hotels and customers. The group can reserve rooms (and perhaps take advantage of everything in-house that a hotel has to offer, at a discounted price), and the hotel can look forward to assured capacity during the duration of the group's stay, rather than being reliant upon unpredictable transient bookings from individuals, couples and families, which may be a lot, or amount to none at all.

These are just some of the types of groups who could qualify for a Group Rate at hotels around the world:

  • Wedding parties
  • Associations
  • Business groups
  • Conferences
  • Corporate event groups – holding a corporate event at a beautiful hotel can help enhance a brand's prestige, as well providing unforeseen business opportunities

And, let's not forget:

  • Reunions! Booking a hotel for an old school-friends get-together, for example, can be a lovely idea. And if the group is offered a Group Rate by the hotel, the overall cost of the gathering can be reassuringly controlled

See Also:


  • Group Rate

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