FACULTY OF HOSPITALITY & TOURISM

MANAGEMENT

DIPLOMA IN HOTEL MANAGEMENT

THE HOTEL AND RESTAURANT

(KDH 2083)

Prepared For:
Mrs. Norsharida Bt. Saari

Prepared By:
Nur Ainadiana Bt Mohd Zamzuri

Date Handed Out: Week 3

Date Handed in: Week 14

“Room Rates & Type Of Room”

TABLE OF CONTENT

CONTENT PAGE

Acknowledgement 3

Introduction 4

Content
 Types of room rate 5–7
 Types of room 8 – 17

Conclusion 18

References 19

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ACKNOWLEDGEMENT

First of all, I would like to express my gratitude to Almighty Allah to enabling me to

complete this assignment on “The hotel & restaurant: Room rates & Type of rooms”.

Successfully completion of any type of assignment requires helps from a number of

persons. I have also taken help from difference people for the preparation of this
assignment. Now, there is a little effort to show my deep gratitude to that helpful person.

I convey my sincere gratitude to my lecturer Mrs. Sharida Bt Saari, International

University College Of Technology. Without her kind direction and proper guidance this
study would have been a little success.

Finally, I would like to thanks my family and friends for their understanding and supports
towards me for completing the assignment.

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INTRODUCTION

Room rate could be typically defined as the price or cost that is charged by the hotel or
lodging. Usually, the front office department and the sales and marketing department are
responsible for ensuring effective room rate according to several market-sensitive aspects. The
market sensitive factors basically include:
 Expected sale rooms
 Expenses to beat market competition
 Hotel operations
 Tax investment opportunities
 Price sensitivity
 Marketing and sales endeavor
Hotel rooms are classified by the number of beds in them, the size and the amenities that
they offer, and their rates vary accordingly. The classification of the hotel rooms is often used
not so much for the indication of comfort, as for the reflection of the number of beds. Customers
can count on the separate bathroom, wardrobe and TV set. WIFI connection to the Internet is a
default option practically in all the rooms of new hotels. Depending on the host country and the
status of the hotel a standard room can have additional functions and features. The type of the
hotel room can depend on the view from the window, the number and the size of rooms, the
quality of furniture, the content of mini-bar and the availability of office equipment.

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TYPES OF ROOM RATE
There are many types of room rates that are established by hotels. These
including:
1. Family rate – This kind of offer is very affordable especially for the whole family.
Extra charges are not provided if in case kids below 5 years old are present.

2. Package rate – Package hotel rates are promotional offers wherein the
amenities in a room including the food are all inclusive. However, this kind of
hotel rate can be seasonal especially during the holidays only.

3. Corporate rate – The rate is offered for business individuals. Meaning, rates are
offered when a person frequently visits the hotel and a discounted rate is
provided.

4. Commercial rate – Commercial room rates are given to the business

representative of a particular company.

5. Government rate – A discount or special rate which is negotiate with

government organization for their foreign visitors and travelling official staffs.

6. Group rate – A group rate is offered to a group of individuals who will check in. It
can be for a group of sales marketers or a group within a company. Discounted
rates are also provided here.

7. Complimentary rate – This type of hotel rate is free of charge. This is given to
hotel guests who have hotel coupons or it is given as a reward.

8. Membership rate – Hotel offer membership rate (50% of the rack rate) in order
to attract the potential members of large organizations like (AAA) or (AARP)

9. Half-day rate – Half-day rate room rate is calculated based on duration of guest
stay. It is basically developed for those traveler who book room for half day or
less. For example corporate guests often room for short period of time for
business purposes. There are also some individuals who would want to rest for a
few hours only. This rate is given at a minimum price since there is no overnight
stay in the hotel

10. Frequent traveler rate – Hotel developed frequent traveler program to offer
frequent traveler rate to those who frequently visit the hotel due to repetitive
business.

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11. Military and educational rate – As the name suggests military and educational
room rates are specially developed for military personnel and educators. These
group are considered room sales due to their frequent travelling. Special rates
are approached to them to their limited travel expense.

12. Airline contact rate – Hotel offer discount rate to the airlines crews to generate
high volume of business

13. Travel writer rate - It is the special rate for the travel writer to appreciate them to
write quality and resourceful article about the hotel features.

14. Advance purchase rate – Advance purchase rate is the discount rate which is
offered according to the number of days of advance booking to encourage the
traveler for advance booking.

15. Rack rate – Rate is published tariff or standard rate for a particular room
category that is printed in tariff sheet of the hotel. These rates are used for hotel
licensing and government tax compliance. Usually no discount is applicable.

16. Promotional rate - These rates are generally offered during low occupancy
periods to any guest to promote occupancy.

17. Package rate – Package room rates include goods and services with reasonable
room rate during low sales periods. Such packages are often advertised and
promoted in order to attract guests.

18. ADHOC rate – These are normally non-standard rates which is offered as a
special one time rates for first time corporate's.

19. Early bird rate – This type of rates are only open X days before arrival. Eg:
Open only when 7 Days before arrival, 14 Days Before Arrival, 30 Days Before
arrival Etc.

20. Incentive Rate Code – The Rate offered to individuals who belong to an
association or holders of special membership cards or Credit cards. Eg: Amex /
VISA / Master card holders get 5% discount on Rack Rate, Lufthansa Frequent
Flyer members get 25 % discount etc. For hotels these rates always give
potential referral business.

21. Best Available rates (BAR): These rate codes are the lowest discounted rate
available for a day which can be offered to the guest by the Reservation or Front
desk staff. BAR can be of different types:

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 'Dynamic BAR' - Has different tiers and each tiers will be opened and closed
according to the occupancy of the hotel. (The new age hotel management software's
does this automatically for the Revenue Mangers.)
(Sample Dynamic BAR Rate)
Open / Close when
BAR Level
Occupancy Between
BAR -01 0% TO 25 %
BAR -02 26 % TO 35 %
BAR - 03 36% TO 50%
BAR - 04 51% TO 75%
BAR - 05 76% TO 100%

'Daily BAR' - Has a pre-defined daily room rate regardless of room categories
(Run of the house) and occupancy, these rates are set according to the day of the
week, as per the demand of hotel rooms in the city, special day's or seasons, as per
the room demand forecast done by the hotel revenue manager.

(Sample Daily BAR Rate)

DATE DAY RATE ($)
19/10/2016 WED 200.00
20/10/2016 THU 200.00
21/10/2016 FRI 250.00
22/10/2016 SAT 250.00
23/10/2016 SUN 250.00
24/10/2016 MON 200.00
25/10/2016 TUE 200.00

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TYPES OF ROOM

Figure 1: Single room

Single Room − A room with the facility of single bed. It is meant for single occupancy. It
has an attached bathroom, a small dressing table, a small bedside table, and a small
writing table. Sometimes it has a single chair too.

Figure 2: Double room

Double Room − A room with the facility of double bed. There are two variants in this
type depending upon the size of the bed
 King Double Room (with king size double bed)
 Queen Double Room (with queen size double bed)

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 Figure 3: Deluxe room

Deluxe Room − They are available in Single Deluxe and Double Deluxe
variants. Deluxe room is well furnished. Some amenities are attached
bathroom, a dressing table, a bedside table, a small writing table, a TV, and
a small fridge. The floor is covered with carpet and most suitable for small
families.

Figure 4: Twin double room

Double-Double (Twin Double) Room − This room provides two double beds with
separate headboards. It is ideal for a family with two children below 12 years.

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 Figure 5: Twin room

Twin Room − This room provides two single beds with separate headboards. It is
meant for two independent people. It also has a single bedside table shared between
the two beds.

Figure 6: Hollywood twin room

Hollywood Twin Room − This room provides two single beds with a common
headboard. If a need arises, the two beds can be brought together to form a double
bed.

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 Figure 7: Duplex room

Duplex Room − This type is composed of two rooms located on two different floors,
connected with internal stairs.

Figure 8: Cabana

Cabana − This type of room faces water body, beach, or a swimming pool. It generally
has a large balcony.

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 Figure 9: Studio

Studio − They are twin adjacent rooms: A living room with sofa, coffee table and chairs,
and a bedroom. It is also equipped with fan/air conditioner, a small kitchen corner, and a
dining area. The furniture is often compact.

Figure 10: Lanai

Lanai − This room with oversees a scenic beauty faces a landscape, a waterfall, or a
garden.

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 Figure 11: Suite

Suite − It is composed of one or more bedrooms, a living room, and a dining area. It is
excellent for the guests who prefer more space, wish to entertain their guests without
interruption and giving up privacy.There are various types of suites −

 Regular Suite − Best for business travelers.

 Penthouse Suite − Luxurious than the regular suite. It is provided with the
access to terrace space above the suite. It is aloof from crowd and provides
abird’s eye view of the city. It has all the amenities and structure similar to a
regular suite.

 Presidential Suite − The best possible suite in the hotel.

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 Figure 12: Interconnected room

Interconnected room – Interconnected rooms are two adjacent rooms that are
connected by a separate door which can be locked from inside of the both rooms. The
cooperation from the residences in the both rooms is necessary to open the
interconnecting door.

Figure 13: Triple room

Triple room – A single or double room is typically used for 1-2 persons travelling as the
bedding configuration is normally one bed. A twin room is for 2 persons travelling
however the room normally has 2 beds. A triple room accommodates up to 3 people
with either one double and a single bed or a combination of beds and roll-aways.

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 Figure 14: Quad room

Quad room – A twin room is for 2 persons travelling however the room normally has 2
beds. A triple room accommodates up to 3 people with either one double and a single
bed or a combination of beds and roll-aways. A quad room accommodates up to 4
people again with a combination of beds and roll-aways

Figure 15: Parlor

Parlor – A room in a private house/establishment where people can sit and talk and
relax.
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 Figure 16: Efficiency

Efficiency – Hotel hotels, an efficiency generally is considered to be one room that

includes a small kitchen area, or kitchenette, and typically also has a dining table with
chairs and a separate bathroom

Figure 17: Hospitality

Hospitality – a suite or room, as in a hotel or convention center, rented by a business

firm, political candidate, or the like, to meet and entertain clients, potential customers,
etc.

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CONCLUSION

Room rates are basically established as part of the reservation process. Thus,
the front office personnel must be skilled in assigning a special room rate during the
registration process. Minimization and minimization of room rate depends respectively
on the cost structure of the hotel and other competitive prices. The front office manager
must consult with the hotel owners, general manager, and other department heads in
case of maximization or minimization of competitor’s room rate.
The guest rooms are the primary source of hotel revenue. There are higher
chances of retaining the guests if the guest rooms are absolutely clean. Various size
and style room made available at differing rates, but prices can be adjusted depending
upon occupancy, time of year and other factors.
Rooms tend to fall into categories when it comes to price-bands, the type of
décor, whether a room is pool-side or ocean-side. Images and descriptions of main
features and amenities applying to each room category will usually be included on a
hotel’s brand website and across its distribution channels.

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REFERENCES

http://setupmyhotel.com/train-my-hotel-staff/front-office-training/178-types-of-room-
rates-used-in-hotels.html

http://www.hospitality-school.com/hotel-room-rates

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