Rate Fences are rules that apply to rates. Meaning that to book a certain rate, there will be specific conditions that will apply to your reservation.
If a hotel discounts a standard rack rate for a specific time period (i.e. flash sale) it usually aims to attract new clients who maybe would not be willing to pay a standard rate. However the hotel doesn’t want to offer the same discounted rates to a customer who is willing to pay the standard rate. Therefore, what the hotel can do is to put so called Fences ‘around the special offer rates’ to protect/ justify the non-discounted rates against existing clients (guests who have already booked at a normal rate can´t ask for a discount anymore).
There are different scenarions in which you can use fenced rates::
Examples of Fences are: advance booking cutoffs or non-refundable payments.
We can also classify Fences in the following categories: