BUSINESS ADMINISTRATION
OFFICE MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Discounted rate
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Cost rate
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Hurdle rate
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Rack rate
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Detailed explanation-1: -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-2: -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-3: -A hurdle rate sets the minimum value of a reservation that can be booked on a given day. If the hurdle rate is $200 and the room rate is $150 a guest will be prevented from making a one-night reservation on that date.
Detailed explanation-4: -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.