Member Rate (Loyalty Rate)

A member rate is a discounted or benefit-enhanced price available only to signed-in loyalty or newsletter members. Hotels use it to reward direct guests while staying within parity rules, because the lower price is shown only after login rather than being publicly advertised.

How it works

The public rate remains the same on all channels, which keeps the hotel parity-compliant. After a guest signs in or joins a free programme, a discount (commonly 5–15%) or extra benefits such as free breakfast, late check-out or Wi-Fi are applied. OTAs run their own versions, such as Genius and One Key, funded partly by the hotel through commission or discounts.

Example

A hotel's BAR is €180 publicly. Members see €162, a 10% reduction. If 30% of direct bookings convert to members and the hotel saves a 15% OTA commission (€27) on each direct booking, the net result is €162 versus €153 received after commission on an OTA booking at €180, a gain of €9 per night plus first-party guest data.

Why it matters

Member rates are one of the most effective tools to shift bookings from OTAs to direct channels, lower cost of distribution, and collect consented guest data for retargeting and CLV growth. They must be configured carefully to avoid rate leakage and to respect rate parity contracts, as some jurisdictions and OTA agreements limit how discounts can be shown.

Related

See Direct Bookings, Genius, One Key, CUG and Mobile Rate.