Mobile Rate

Mobile Rate is a discounted rate offered only to guests who book through a mobile app or mobile device. It is a form of closed-user-group pricing that rewards the booker for using a channel the seller wants to encourage, and it is commonly offered by hotels and OTAs through their rate plans or extranet settings.

How it works

The hotel creates a rate or applies a discount (often 5–15%) that is visible only when the booking originates on a mobile device or app. Because the offer is not shown publicly to desktop shoppers, it is generally considered compatible with Rate Parity commitments, in the same way as other closed-user-group rates (see CUG (Closed User Group)).

Example

A hotel's BAR is €120. Through its OTA extranet it enables a 10% mobile discount, so app users see €108. If 20% of OTA bookings come via mobile, roughly one in five bookings earns the lower rate, with the hotel accepting lower ADR in return for more app-based demand and loyalty.

Why it matters

Mobile is now a major share of travel browsing and bookings. A mobile rate can lift conversion on small screens, build app adoption (and with it direct, lower-cost repeat bookings for OTAs) and add a targeted promotion without cutting public price. Hotels should monitor the discount's effect on ADR and Net ADR Yield, and avoid stacking it with other promotions that push rates below sustainable levels.

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