What is the meaning / definition of Fenced Rate in the hospitality industry?
The term Fenced Rate refers to reservations that offer certain benefits for bookers: under some conditions and requirements.
Lots of variables can determine a hotel’s room rates for rooms. When segmented into Fenced Rates, the process of rate-setting becomes a lot simpler.
Types of Fenced Rates can include:
- Non-refundable reservations
- Non-cancellable reservations
- Advanced purchase reservations
By setting Fenced Rates, a hotel can often sell more rooms in advance. For guests who accept Fenced Rates when reserving rooms, there can be advantages — such as reduced prices for in-house services and activities.
Note: Guests are not forced to accept these restrictions, but their rate is determined by which (if any) Fences they accept.
See Also:
- Early Bird Discount
- Dynamic Pricing
Synonyms
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