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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.

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