Performance & revenue
BAR
Also written: best available rate
What BAR means
Best Available Rate (BAR) is the lowest, non-restricted room rate available to the general public on a given day. Distinct from negotiated, group, or packaged rates, it serves as the baseline benchmark from which all other dynamic pricing tiers and promotional discounts are calculated.
How it is used
Revenue managers set BAR daily or hourly based on demand forecasts, competitor pricing, and remaining inventory. It dictates real-time distribution across direct channels and Online Travel Agencies (OTAs), ensuring rate parity compliance. Changes to BAR automatically scale linked rates, such as advance purchase discounts or loyalty rates. Operators monitor BAR to optimize yield without alienating price-sensitive transient guests or violating contractual rate floors established with corporate clients.
Worked example
A hotel sets its baseline BAR for a standard king room at $200. The yield management system applies a pre-configured rate matrix: the Non-Refundable rate is set at BAR minus 10% ($180), while the Corporate Negotiated ceiling remains capped at $175. If high demand drives BAR up to $250, the Non-Refundable rate automatically shifts to $225.
Common mistake
Failing to maintain rate parity when adjusting BAR can trigger penalty clauses or demotions in search rankings across third-party distribution channels.