Rate Fence

Definition

A condition that legitimately separates one price point from another for the same room, so the two aren’t directly comparable. Common fences: a logged-in member rate, a package (room + extras), a non-refundable rate, a mobile-only rate, a corporate / negotiated rate, or an opaque channel.

What it tells you

How a hotel can run several price points for the same room without breaching rate parity. Each fence targets a different guest: the price-sensitive take the non-refundable, the loyal take the member rate, the planner takes the package.

How to track it

List every active rate plan and the fence that justifies it. Make sure each cheaper rate sits behind a real condition (membership, prepayment, bundling) — an unconditional discount on the public BAR is a parity breach, not a fence.

Where it fits

Rate fences are the core tool for price discrimination and for growing the direct channel (the member rate is the strongest). They turn a single public BAR into a structured fare ladder.