{"id":22674,"date":"2020-04-13T14:07:30","date_gmt":"2020-04-13T14:07:30","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/rate-integrity\/"},"modified":"2024-12-23T09:21:16","modified_gmt":"2024-12-23T09:21:16","slug":"rate-integrity","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/rate-integrity","title":{"rendered":"Rate Integrity"},"content":{"rendered":"

What is the meaning \/ definition of Rate Integrity in the hospitality industry<\/a>?<\/p>\n

A term used to value a hotels rates and not allow dramatic discounts for better long-term revenue results for the hotel<\/a> and the surrounding area and competition. Also used to justify the reason for a discount of rack rates compare to other guests.<\/p>\n

As a hotel trying to maximise revenue, it is tempting to cave in and offer last-minute rooms for a steep discount, for offer a hotel room<\/a> at 50% off is better than generating no revenue from it at all. Many hotels find that slashing their prices over completion, increases their revenue and drive new market traffic to them.<\/p>\n

However, a recent study conducted by Cornell University shows that hotels that adopt this practice into their this into their revenue management strategies<\/a> may see an increase occupancy<\/a> in the short-term, but in the long-term decrease their rack rate<\/a> value and reward customers who wait for last-minute deals to their hotel<\/a>. Two things that will hurt a hotels reputation and sales in the long-term.<\/p>\n

This term also refers to the justifying of a discount used for a rack rate from guest to guest. Discounts are given to guests in order to fill hotel rooms, increase sales or entice guests to stay<\/a> longer. However, if these discounts are not justified to guests than another guest at the hotel may find out, leading to a declining reputation. This is why it is important to clearly state the reasoning for discounts to all guests that receive one.<\/p>\n

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