Hurdle Rate

Definition

Hurdle rate is the minimum rate at which you’ll accept a booking on a given night. Below the hurdle, the booking is declined — usually because high-rate demand is still likely to materialize for that night.

What it tells you

A hurdle rate is a discipline tool. On a high-demand night with strong pace, you set the hurdle high (e.g., €180) and refuse anything below. On a soft night with weak pace, the hurdle drops (e.g., €90) to capture whatever demand is willing to commit.

How to track it

Set manually by the revenue manager (or automatically by an RMS) per date. Group inquiries are evaluated against the hurdle. Some channel managers can close out rates below a configured floor.

Where it fits

The central tool for resisting price erosion in high-demand periods. Especially important for group decisions — accepting a 60-room block at €110 when the hurdle is €140 leaks €1,800/night for that block.