Best available rate (BAR) explained: what it is and how to set it
The best available rate (BAR) is a hotel's lowest unrestricted public price for a room and night, the reference that member rates and packages are set from.
The best available rate (BAR) is the lowest unrestricted price a hotel offers the public for a given room and night, open to anyone, with no membership, code or special conditions. It is the reference price for that night. Most other rates, such as member rates, packages and promotions, are set as a discount or a supplement on BAR.
What does best available rate mean in a hotel?
BAR is your public, flexible price for a room type on a specific date. Any guest can book it. It usually comes with your standard cancellation policy and no prepayment tricks or hidden conditions. If a guest lands on your website with no code and no account, BAR is what they should see.
The word “best” causes confusion. BAR is not your cheapest price ever. It is the best price available to the general public at that moment, under normal terms. A restricted rate, such as a non-refundable plan or a corporate rate, can sit below BAR because the guest gives something up or belongs to a closed group.
BAR also changes. Many hotels move it every day, or several times a day, as demand changes. That is why you will often hear “BAR by day” or “dynamic BAR”.
Why is BAR the anchor for all your other rates?
A clear BAR makes the rest of your pricing simple to manage. When you link other rate plans to it, one change to BAR moves every linked rate in the same direction. You avoid editing ten plans one by one, and you avoid mistakes where a “discount” ends up dearer than the public price.
Typical rates linked to BAR include:
- Non-refundable rate: a percentage below BAR in exchange for full prepayment and no refunds.
- Member rate: a discount for signed-in loyalty members. See loyalty and member rates.
- Breakfast or half board package: BAR plus a meal supplement per person. Our guide to meal plans covers how to price them.
- Early bird and last minute offers: discounts tied to how far ahead the guest books.
- Corporate or booking-code rates: agreed prices for companies, groups or partners, unlocked with a code.
BAR compared with other common rate types
| Rate type | Who can book it | Typical relation to BAR | Main condition |
|---|---|---|---|
| Best available rate | Anyone | The reference price | Standard cancellation policy |
| Non-refundable | Anyone | Below BAR | Prepaid, no refund |
| Member rate | Signed-in members | Below BAR | Membership, verified sign-in |
| Package (for example with breakfast) | Anyone | Above BAR | Includes extra services |
| Corporate or code rate | Guests with a valid code | Negotiated, often below BAR | Code or contract |
| Rack rate | Anyone, in theory | Usually the top of the range | Rarely sold in practice |
The rack rate is the old published maximum price. Few hotels sell at rack today. BAR has replaced it as the working public price.
How do hotels set their best available rate?
There is no single formula. Most revenue managers set BAR from a few inputs and then review it often. Start with these:
- Know your floor. Work out the lowest price you will accept for each room type. It should cover the cost of the stay and your distribution cost.
- Look at your own demand. Check on-the-books occupancy for each future date and compare it with the same point last year, if you have the data.
- Check the market. Look at what similar hotels nearby charge for the same dates. You do not need to match them, but you need to know where you sit.
- Mark seasons and special dates. Holidays, school breaks, exhibitions, concerts and religious periods all change demand. Set them in your calendar early.
- Set rules for changes. Decide in advance how BAR moves when occupancy rises or when the arrival date gets close. Our dynamic pricing guide shows how to build these rules.
- Review and adjust. Look at pick-up (new bookings since your last check) every few days, and daily for busy periods.
In goDirects, you manage BAR and linked rates in ARI Studio, with bulk changes, seasons and special dates. Dynamic pricing rules can move prices based on occupancy and lead time, inside the limits you set.
A worked example of BAR and linked rates
Example: a city hotel sets BAR for a Deluxe King at $200 for a Thursday night. It links its other plans to BAR like this:
| Rate plan | Rule | Price for the night |
|---|---|---|
| BAR, room only, flexible | Reference | $200 |
| Non-refundable | BAR minus 10% | $180 |
| Member rate | BAR minus 5% | $190 |
| BAR with breakfast for two | BAR plus $20 per person | $240 |
Examples use US dollars; the same maths works in any currency.
Two weeks later, demand for that Thursday rises and the hotel moves BAR to $220. Every linked rate follows: non-refundable becomes $198, member rate $209, and the breakfast package $260. One change, four prices updated, and the order between them stays correct.
The percentages above are only an illustration. Choose discounts that fit your costs, your guests and your contracts.
How does BAR relate to rate parity and OTAs?
Most hotels publish BAR on their own website and on online travel agencies (OTAs) through a channel manager. Some OTA contracts include parity clauses about the prices you show on other channels. The rules differ by country and by contract, so always read your own agreements. Our article on rate parity explains the basics.
Problems start when your website BAR is higher than the price a guest sees on an OTA for the same room and night. This can happen through OTA-funded discounts, currency rounding or a rate that was not updated. The guest notices and books elsewhere. OTA Price Match checks OTA prices for upcoming nights and keeps your direct price lowest, within a floor you set.
Many hotels also give direct guests something BAR alone does not: a member rate, breakfast or a flexible policy. See direct booking vs OTA for more ideas.
Common BAR mistakes to avoid
- Setting BAR once a season and forgetting it. Demand changes week to week. A fixed price leaves money behind on busy nights and loses bookings on quiet ones.
- Discounts that beat your floor. If a member rate and a promo code stack, the final price can fall below cost. Check how your offers combine.
- Different BAR on different channels by accident. Use one source of truth for rates and push from there.
- Hiding taxes and fees until the last step. Guests compare totals. Show a clear total early. In goDirects, totals with taxes and fees are calculated on the server and can be shown inclusive or on top.
- Too many rate plans. Ten plans with small differences confuse guests. Keep a short, clear list built around BAR.
BAR checklist for your booking engine
- Every room type has a BAR for every open date.
- All other rate plans are linked to BAR by a clear rule.
- You know your floor price for each room type and season.
- Seasons and special dates are set in your calendar for the next 12 months.
- Your website BAR is not higher than the OTA price for the same room and night.
- Restrictions such as minimum stay are set on the dates that need them. See stay restrictions.
- You review pick-up on a fixed routine.
If you want to see how BAR, linked rates and price checks work together on your own domain, book a demo.
Frequently asked questions
Is BAR the cheapest rate a hotel offers?
Not always. BAR is the lowest price open to everyone under standard terms. Restricted rates, such as non-refundable plans, member rates or corporate rates, can be lower because the guest accepts conditions or belongs to a closed group. BAR is the public reference, and other prices are set around it.
How often should a hotel change its BAR?
As often as demand changes. Many hotels review BAR daily for the next few weeks and less often for dates further out. The key is a routine: check pick-up and market prices on fixed days, and use pricing rules so routine changes happen without manual edits.
What is the difference between BAR and rack rate?
The rack rate is a published maximum price that hotels rarely sell at today. BAR is the live public price for a specific night. It moves with demand, while the rack rate is usually fixed for a long period and mostly serves as a ceiling or a legacy reference.
Should BAR be the same on my website and on OTAs?
It depends on your contracts and local rules, so check your agreements. In any case, your website should not show a higher price than an OTA for the same room and night. Many hotels add value on direct bookings, such as member rates or breakfast, to give guests a reason to book direct.
Can BAR include breakfast?
Yes. Some hotels define BAR as room only and sell breakfast as a package on top. Others define BAR with breakfast included. Pick one approach, use it on every channel, and label the rate clearly so guests know exactly what they are paying for.