LRA (Last Room Availability)
LRA (Last Room Availability) is a distribution agreement in which a hotel guarantees that a negotiated rate remains bookable as long as any room of the relevant type is available for sale — right down to the very last room. It is most common in corporate and consortia contracts and in certain GDS and OTA agreements, where the partner expects assured access to the agreed rate rather than having it closed off during high-demand periods.
LRA vs. Non-LRA
- LRA (Last Room Availability): The contracted rate stays open until the hotel is genuinely sold out of that room type. The buyer gets reliable access; the hotel gives up some yield control on peak dates.
- Non-LRA (Non–Last Room Availability): The hotel can close the negotiated rate while still selling other, usually higher, rates. The hotel keeps yield flexibility, but the buyer may find the agreed rate unavailable when demand is strong.
Example
A corporation negotiates a €140 LRA rate for the year. During a citywide convention, the hotel would prefer to sell rooms at €260. Under the LRA agreement it must still honor the €140 rate as long as standard rooms remain for sale, only closing it once that room type is fully booked. Had the contract been non-LRA, the hotel could have closed the €140 rate and sold those rooms at the higher market price.
Why it matters
LRA terms shift risk and reward between buyer and seller. Corporate buyers value LRA because it protects travelers from rate gaps during peak periods, improving program compliance. Hotels weigh that assurance against the displacement cost of selling rooms below market on high-demand dates, which is why LRA is often granted only to high-volume accounts or traded for rate and volume concessions.
Related
- BAR (Best Available Rate) — the public rate LRA negotiated rates are frequently benchmarked against
- Group Displacement — the analysis used to weigh the cost of honoring low LRA rates on peak dates
- Allotment — an alternative inventory mechanism with its own availability rules
- Stop Sell — a control that LRA agreements specifically restrict on the negotiated rate