What is the definition of Rate Integrity in the hotel industry?
A word used to value a hotels rates and not permit theatrical discounts for better long-term income results for the hotel and the neighboring area and contest. Also used to validate the cause for a discount of rack rates contrast to other visitors.
As a hotel trying to make the most of income, it is alluring to cave in and offer last-minute rooms for a sharp discount, for present a hotel room at 50% off is better than generating no income from it at all. Many hotels find that slashing their prices over wrapping up, increases their income and drive new market traffic to them.
However, a recent study conducted by Cornell University shows that hotels that take on this practice into their this into their income management strategies may see a boost occupancy in the short-term, but in the long-term reduce their rack rate value and recompense customers who wait for last-minute deals to their hotel. Two things that will hurt a hotels status and sales in the long-term.
This word also refers to the justifying of a concession used for a rack rate from guest to guest. Discounts are given to guests in order to fill hotel rooms, increase sales or entice guests to stay longer. However, if these discounts are not necessary to guests than one more guest at the hotel may find out, leading to a declining status. This is why it is significant to clearly shape the reasoning for discounts to all guests that get one.