What is the meaning / definition of Sell Rate in the hospitality industry?
Sell rate can be simply defined as the amount the guest has to pay for your hotel’s room night. Not all hotel reservations are made directly through the hotel itself – over the ‘phone, at Reception or through the hotel’s brand website.
These days, prospective guests can book rooms through distribution channels, paying their chosen channel’s Sell Rate.
The diverse distribution landscape can include all this:
- Online travel agencies (OTAs)
- High Street travel agencies (‘bricks and mortar’ outlets)
- Global distribution systems (GDSs)
- Social Media platforms
- Mobile (apps, handheld devices with booking system compatibility…)
As well as:
- Hot Deal sites
- Voice reservations
- Flash sales
- And more!
When setting a Sell Rate, a hotel must try to get the very best deal for themselves whilst still making the agreement worthwhile for channels. This can sometimes be a difficult balance to strike, but it is well worth revenue management and pricing teams at hotels taking the time to calculate the best Sell Rates for each type of room or suite they are seeking to fill, so that their own Net Rate received later is as high as possible.
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