{"id":22462,"date":"2020-04-07T10:04:19","date_gmt":"2020-04-07T10:04:19","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/bar-pricing-strategy\/"},"modified":"2024-12-23T09:22:11","modified_gmt":"2024-12-23T09:22:11","slug":"bar-pricing-strategy","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/bar-pricing-strategy","title":{"rendered":"BAR Pricing Strategy"},"content":{"rendered":"

What is the meaning \/ definition of BAR Pricing Strategy?<\/p>\n

A BAR Pricing Strategy is a revenue management strategy<\/a>, based on the Best Available Rate. It is also called a fixed tiers approach because, you are going to fix your BAR, meaning the lowest price available in your hotel<\/a> and set the other rates according to it. For example, your BAR is set at 100 euros. Your reward program rate will be 50% off the BAR and your OTA<\/a> price, 30% off the BAR.<\/p>\n

Therefore, if the BAR goes up or down, the other prices follow. Different level of BAR can also be set up, according to the occupancy rate<\/a>.<\/p>\n

A hotel in Wimbledon (London, UK) wants to make as much money as possible during the world-famous Wimbledon Lawn Tennis Championships. They know that demand<\/a> for rooms and other services will be very high during that time in summer. So, they plan to increase their prices then, in parallel to demand escalation.<\/p>\n

It is a pretty simple strategy, but not really relevant in the actual distribution context. Indeed, this strategy can create a loss of revenue; as you base your BAR<\/a> on occupancy rate, when the occupancy rate is reached, some channels<\/a> are going to be closed. This will induce a loss of visibility or eventually customers redirecting to third party channels<\/a> if you close the direct one.<\/p>\n

See also:<\/strong><\/p>\n