Negotiated Rate

Definition

A discounted rate offered to a specific corporate account or contracted partner. Often expressed as “BAR minus 15%” or as a fixed rate locked for a year. Distinct from public promotional rates.

What it tells you

Negotiated rates trade revenue per booking for volume reliability. The right negotiated rate covers the hotel’s marginal cost while securing business that would otherwise go to competitors.

How to track it

PMS records negotiated rates per account. Track average negotiated-rate ADR vs BAR; monitor whether negotiated business is growing or shrinking as a share of total.

Where it fits

Negotiated rates are a strategic choice. Too generous undermines BAR-rate integrity; too aggressive loses corporate accounts to competitors. The annual RFP cycle is when these decisions get re-made.