In the hospitality industry, "fenced rates" refer to pricing strategies where specific rates or discounts are offered to a particular group of customers or under specific conditions. These rates are often restricted or "fenced" by certain criteria such as membership status, booking channels, or promotional codes. By offering fenced rates, businesses can target and incentivize specific customer segments, drive bookings through preferred channels, or encourage loyalty program participation. This strategy helps optimize revenue and occupancy by tailoring pricing to different customer segments and maximizing the value of available inventory.
What are fenced rates in the hospitality industry?
Fenced rates in the hospitality industry refer to specific pricing strategies where rates or discounts are offered under certain conditions or to particular customer segments. These conditions could include membership status, booking channels, promotional codes, or other criteria.
How do fenced rates benefit hotels or businesses in the hospitality industry?
Fenced rates allow hotels and businesses in the hospitality industry to target specific customer segments effectively, incentivize bookings through preferred channels, increase loyalty program participation, and optimize revenue by maximizing the value of available inventory. By offering tailored rates, businesses can attract different types of customers and drive bookings while maintaining control over pricing strategies.