What is BAR?
BAR = Best Available Rate
The lowest unrestricted rate available to the general public for a specific room type on a specific date. It's your baseline rate from which other rates are derived.
How BAR Works
BAR is typically a flexible, refundable rate with no special conditions. It serves as the foundation for your rate structure:
Example: Rate Structure Based on BAR
| Rate Type | Relation to BAR | Example (BAR = ₹5,000) |
|---|---|---|
| BAR (Flexible) | Base rate | ₹5,000 |
| Non-Refundable | BAR - 10-15% | ₹4,250 |
| Advance Purchase (14 days) | BAR - 15-20% | ₹4,000 |
| Member Rate | BAR - 5-10% | ₹4,500 |
| Corporate Rate | Fixed below BAR | ₹4,000 (contracted) |
BAR Characteristics
- Flexible: Can be cancelled (with some notice)
- Public: Available to anyone - no membership required
- Dynamic: Changes based on demand, seasonality, events
- Unrestricted: No minimum stay, no advance booking requirement
- Transparent: Same rate on all channels (rate parity)
Where BAR is Used
| Use Case | Example |
|---|---|
| OTA Listings | BAR is your main flexible rate on Booking.com, MakeMyTrip |
| Direct Website | Show BAR with "Best Rate Guarantee" |
| Phone/Walk-in | Quote BAR to guests who call or walk in |
| Corporate Negotiation | "We offer 15% off BAR for your company" |
| Package Building | BAR + Breakfast + Spa = Package rate |
How to Set Your BAR
- Calculate costs: Know your cost per occupied room
- Check competitors: What are similar hotels charging?
- Consider demand: High demand = higher BAR, low demand = lower BAR
- Set seasonal rates: Different BAR for peak, shoulder, off-season
- Update regularly: Adjust based on pickup and market conditions
Pro Tip: Set BAR slightly higher than your target ADR. This gives room for promotions, member discounts, and corporate rates while still hitting your revenue goals.
BAR vs Rack Rate
| BAR | Rack Rate |
|---|---|
| Dynamic - changes often | Static - published maximum rate |
| What guests actually pay | Legal maximum (rarely charged) |
| Based on demand | Based on tariff card |
| Shows on OTAs | Required by law in some places |
Dynamic BAR Strategy
Example: BAR Changes Throughout the Week
| Day | BAR | Reason |
|---|---|---|
| Monday | ₹4,000 | Low business demand |
| Tuesday-Thursday | ₹5,000 | Business peak |
| Friday | ₹5,500 | Weekend starts |
| Saturday | ₹6,500 | Leisure peak |
| Sunday | ₹4,500 | Transition day |
Common BAR Mistakes
- Static pricing: Same BAR all year = leaving money on table
- Undercutting yourself: Giving lower rates on one channel breaks parity
- No floor rate: BAR should never go below your cost + margin
- Forgetting to update: Old BAR for future dates can be too high or low
- Ignoring competitors: Your BAR should be competitive in your market