The hospitality industry is complex and multifaceted, with various terms and concepts that can be confusing for those not familiar with them. One such term is the “Run of House” rate, which refers to a specific pricing strategy used by hotels and other accommodations. In this article, we will delve into the world of Run of House rates, exploring what they are, how they work, and their implications for both hotels and guests.
Introduction to Run of House Rates
Run of House (ROH) rates are a type of hotel room rate that does not guarantee a specific room type or location within the hotel. Instead, guests who book at the ROH rate are allocated a room based on availability when they check-in. This means that the room could be anything from a standard room to a suite, depending on what is available. The ROH rate is often used by hotels to fill their remaining rooms and maximize occupancy, especially during periods of low demand.
How Run of House Rates Work
When a hotel offers a Run of House rate, it means that they are selling their remaining rooms at a discounted price. The rate is usually lower than the hotel’s standard rates, as it is based on the principle of “whatever is available.” Guests who book at the ROH rate are not guaranteed a specific room type, and they may be allocated a room that is different from what they expected. For example, a guest who books a ROH rate at a hotel that has both smoking and non-smoking rooms may be allocated a smoking room, even if they prefer a non-smoking room.
Benefits of Run of House Rates for Hotels
There are several benefits of Run of House rates for hotels. One of the main advantages is that it helps hotels to fill their remaining rooms and maximize occupancy. By offering a discounted rate, hotels can attract more guests and increase their revenue. Additionally, ROH rates can help hotels to clear their inventory of unsold rooms, which can be especially useful during periods of low demand. Hotels can also use ROH rates to test their pricing strategies and determine the optimal rate for their rooms.
Implications of Run of House Rates for Guests
While Run of House rates can offer significant savings for guests, there are also some implications to consider. One of the main drawbacks is that guests are not guaranteed a specific room type or location. This can be a problem for guests who have specific preferences, such as a non-smoking room or a room with a particular view. Additionally, guests who book at the ROH rate may be allocated a room that is not as desirable as they had hoped.
Advantages of Run of House Rates for Guests
Despite the potential drawbacks, there are also some advantages of Run of House rates for guests. One of the main benefits is that ROH rates can offer significant savings, especially for guests who are flexible with their room preferences. Additionally, guests who book at the ROH rate may be able to stay at a hotel that they would not have been able to afford otherwise. ROH rates can also be a good option for guests who are looking for a last-minute deal or a spontaneous getaway.
Tips for Booking a Run of House Rate
If you are considering booking a Run of House rate, there are several tips to keep in mind. Firstly, be sure to read the fine print and understand the terms and conditions of the rate. Make sure you know what you are getting and what you are not getting. Secondly, be flexible with your room preferences and be prepared for the possibility that you may not get the room you want. Finally, consider contacting the hotel directly to ask about the ROH rate and what you can expect.
Comparison of Run of House Rates with Other Room Rates
Run of House rates are just one of the many room rates that hotels offer. Other types of room rates include standard rates, discounted rates, and package rates. Standard rates are the hotel’s usual rates, which are based on the room type and location. Discounted rates, on the other hand, are special rates that hotels offer to specific groups of guests, such as seniors or students. Package rates, which include a room and other amenities such as breakfast or parking, can also be a good option for guests who want to save money.
Types of Room Rates
There are several types of room rates that hotels offer, including:
- Standard rates: These are the hotel’s usual rates, which are based on the room type and location.
- Discounted rates: These are special rates that hotels offer to specific groups of guests, such as seniors or students.
- Package rates: These rates include a room and other amenities such as breakfast or parking.
- Run of House rates: These rates do not guarantee a specific room type or location, and are often used by hotels to fill their remaining rooms.
Conclusion
In conclusion, Run of House rates are a type of hotel room rate that can offer significant savings for guests. However, guests need to be aware of the potential drawbacks, including the lack of guarantee of a specific room type or location. By understanding how ROH rates work and what to expect, guests can make informed decisions and get the most out of their hotel stay. Whether you are a hotel manager looking to maximize occupancy or a guest looking for a great deal, Run of House rates are definitely worth considering. With their flexibility and potential for savings, ROH rates can be a win-win for both hotels and guests.
What is the Run of House Rate?
The Run of House Rate (ROH) refers to a pricing strategy used by hotels and other accommodations providers, where a single rate is applied to all available rooms, regardless of their type, size, or location. This approach simplifies the booking process for both the hotel and the guest, as it eliminates the need to specify a particular room category or amenities. The ROH rate is often used during periods of low demand, as it allows hotels to fill their rooms quickly and efficiently, while also providing guests with a competitive and transparent pricing option.
In practice, the ROH rate is usually determined by the hotel’s revenue management team, taking into account various factors such as occupancy levels, seasonal demand, and competition from other hotels in the area. The ROH rate may be adjusted regularly to reflect changes in market conditions, and it is often used in conjunction with other pricing strategies, such as dynamic pricing or loyalty program discounts. By understanding the ROH rate, hospitality professionals and travel enthusiasts can better navigate the complex world of hotel pricing and make more informed decisions when booking accommodations.
How does the Run of House Rate differ from other hotel rates?
The Run of House Rate differs from other hotel rates, such as the Rack Rate or the Corporate Rate, in that it is not tied to a specific room type or category. While the Rack Rate is the hotel’s published rate for a particular room category, and the Corporate Rate is a discounted rate offered to business travelers, the ROH rate is a more flexible and dynamic pricing approach. The ROH rate can be adjusted quickly in response to changes in demand, and it can be used to fill a wide range of room types, from standard rooms to suites and luxury accommodations.
In contrast to other hotel rates, the ROH rate is often more opaque, as guests may not know exactly which room type they will receive until check-in. However, this lack of specificity can also be seen as a benefit, as guests may be upgraded to a higher room category at no additional cost. To take advantage of the ROH rate, guests should be flexible with their travel dates and room preferences, and they should be willing to book at short notice. By being open to different room options and rates, guests can often find better value and more competitive pricing using the ROH rate.
What are the benefits of the Run of House Rate for hotels?
The Run of House Rate offers several benefits for hotels, including increased flexibility and simplicity in their pricing strategies. By using a single rate for all available rooms, hotels can reduce the administrative burden associated with managing multiple room rates and categories. The ROH rate also allows hotels to respond quickly to changes in demand, as they can adjust their pricing in real-time to reflect shifts in occupancy levels or market conditions. Additionally, the ROH rate can help hotels to fill their rooms more efficiently, as it eliminates the need to specify a particular room type or category.
The ROH rate can also help hotels to manage their revenue more effectively, as it allows them to optimize their pricing based on demand. By using data and analytics to inform their pricing decisions, hotels can maximize their revenue and minimize empty rooms. Furthermore, the ROH rate can help hotels to improve their guest satisfaction ratings, as it provides a more transparent and competitive pricing option. By offering a single, simple rate, hotels can reduce confusion and frustration among their guests, and provide a more streamlined and efficient booking experience.
How do hotels determine the Run of House Rate?
Hotels determine the Run of House Rate by analyzing various factors, including their occupancy levels, seasonal demand, and competition from other hotels in the area. The hotel’s revenue management team will typically use data and analytics to forecast demand and optimize their pricing, taking into account factors such as historical occupancy patterns, special events, and holidays. The ROH rate may be adjusted regularly to reflect changes in market conditions, and it may be used in conjunction with other pricing strategies, such as dynamic pricing or loyalty program discounts.
In addition to analyzing demand and market conditions, hotels may also consider their costs and revenue targets when determining the ROH rate. For example, a hotel may set a minimum ROH rate to ensure that they cover their costs and meet their revenue targets, even during periods of low demand. The hotel may also use the ROH rate to incentivize bookings during slower periods, such as mid-week or off-season. By using a combination of data-driven analysis and strategic decision-making, hotels can determine an optimal ROH rate that balances their revenue goals with the needs and expectations of their guests.
Can guests request a specific room type when booking a Run of House Rate?
While guests can request a specific room type when booking a Run of House Rate, there is no guarantee that their request will be honored. The ROH rate is a more flexible and dynamic pricing approach, and hotels may not be able to accommodate specific room requests. However, guests can always ask about the possibility of upgrading to a higher room category or requesting a specific room type, and the hotel may be willing to accommodate their request if possible.
It’s worth noting that some hotels may offer a “request-only” upgrade option, where guests can pay an additional fee to request a specific room type or upgrade to a higher category. In these cases, the hotel will do their best to accommodate the guest’s request, but there is still no guarantee. Guests should always check with the hotel directly to confirm their room assignment and any upgrade options, and they should be prepared to be flexible with their room preferences. By being open to different room options and rates, guests can often find better value and more competitive pricing using the ROH rate.
Are there any drawbacks to the Run of House Rate for guests?
One potential drawback to the Run of House Rate for guests is the lack of specificity and transparency in the booking process. When booking a ROH rate, guests may not know exactly which room type they will receive until check-in, which can be frustrating for those with specific preferences or requirements. Additionally, the ROH rate may not always be the best value, as guests may end up paying a higher rate for a standard room than they would have if they had booked a specific room category.
Another potential drawback to the ROH rate is that it may not be available during peak periods or special events, when hotels are more likely to sell out their rooms at a higher rate. In these cases, guests may need to book a more expensive room category or consider alternative accommodations. However, for guests who are flexible with their travel dates and room preferences, the ROH rate can be a great option. By being open to different room options and rates, guests can often find better value and more competitive pricing using the ROH rate, and they can enjoy a more streamlined and efficient booking experience.
Can the Run of House Rate be used in conjunction with other hotel promotions or discounts?
The Run of House Rate can be used in conjunction with other hotel promotions or discounts, depending on the hotel’s policies and availability. For example, a hotel may offer a discounted ROH rate for loyalty program members or guests who book a stay during a slower period. Additionally, hotels may offer package deals or bundles that include the ROH rate, along with other amenities or services such as breakfast, parking, or spa treatments.
In some cases, the ROH rate may be combinable with other discounts or promotions, such as a percentage-off discount or a free-night offer. However, guests should always check with the hotel directly to confirm the terms and conditions of any promotions or discounts, and to ensure that they are eligible to combine the ROH rate with other offers. By being aware of the hotel’s policies and promotions, guests can maximize their savings and enjoy a more competitive and transparent pricing option. By using the ROH rate in conjunction with other discounts or promotions, guests can often find even better value and more competitive pricing for their hotel stay.