What is the definition of a Rate fence in the Hotel Industry?
Fences are rules that apply to room rates. Meaning that to book a certain rate, there will be specific conditions that will apply to your reservation. Often rate fences such a 2-night minimum stay is used to literally ‘fence’ a room rate from being used by guests only staying 1 night.
Hotels use rate fences as part of their yield strategy and to optimize their revenue results.