BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Any room cannot be sold for more than its rack rate. Generally, rack rates are offered to walk-in guests, but the Front Office Manager must also set the lowest rate for a given date based on the demand. This lowest rate is called the hurdle rate. Any room can be sold at a price above its hurdle rate.

Detailed explanation-2: -In the context of revenue management for the hotel industry, the hurdle rate is the lowest acceptable room price for a given date.

Detailed explanation-3: -Best available rate (BAR) The best available rate, or BAR, is the most affordable rate that can be offered to the guest. There are two types of BAR rates, a dynamic rate, or a daily rate. A dynamic rate is typically a standard rate based on the number of rooms available.

Detailed explanation-4: -Reserve close to arrival dates – By allowing the reservations to be taken for a certain date as long as the guest arrives before that date, a property is able to control the volume of check-ins.

Detailed explanation-5: -A minimum length of stay strategy requires that a reservation must be for at least a specified number of nights in order to be accepted. The advantage of this strategy is that it allows the hotel to develop a relatively even occupancy periods. It is common for resorts to use this approach during peak occupancy periods.