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Hotel Tariff

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Concept of Tariff

Tariff is the rate or charges offered to the guest by the hotel for the use of different facilities and services, during their stay in the hotel. Commonly tariff is a charge of room rates and other facilities. In simple words, a tariff is the list of fares in which room rates, fixed meals rates, and other applicable taxes are mentioned. Usually, rates are printed on a card also known as tariff card. Tariff card is an important marketing tool of a hotel that provides the detailed information about facilities and services provided by the hotel to their guest along with their rates. Tariff card may include meals depending upon the types of the plan of the hotel provided to the guest. A perfect tariff card contains following details;

  • Heading as a tariff card
  • Name and complete address of a hotel
  • Room type and plan
  • Check -in and check-out time
  • Acceptable modes of payment
  • Discount offer
  • Government taxes and services charges
  • Validity of rates available
  • Types of meal and their rates
  • Rules and regulation of a hotel

Without these above details, a tariff card is not called a proper tariff card.

Tariff / Rate of the Room

The tariff or rates of the room differs according to the type and plan of the hotel offered to the guests.

  • European plan (EP)

European plan offers the facility of rooms only. The extra facilities that the guest incurs during his/her stay in the hotel will be on additional payment. It is fourth expensive or the cheapest plan among all plans.

  • American plan (AP)

It is also called en-pension or full board. American plan includes the facility of room, breakfast, lunch, and dinner. It is the most expensive plan among all plans.

  • Modified American plan (MAP)

It is also called as en-pension or full board. American includes the facilities of room, breakfast, lunch or dinner anyone among two as per guest choice. It is second expensive plan after American plan.

  • Bed and breakfast (B and B)

Bed and breakfast plan offers the facility of a room and the breakfast only. If the plan consists continental breakfast like a sandwich, bread and butter etc then the plan is known as a continental plan or (CP). Is third expensive among all plans.

Types of hotel tariff (room rate)

  • Maximum rate/ rack rate/tariff

It is basically printed on tariff card. It is a standard rate fixed by the hotel which is also called no discounted rate or fixed rate.

  • Minimum rate

It is low discounted rate provided according to the types of guest such as group guest, regular guest, commercially important guests etc

  • Cribrate/clot rate

It is the special rate for the children below 12 years and accompanying their parents.

  • Day rate

It is the rate for those guest who comes for less than one overnight stay.

  • Family rate

This is the rate for a group of family with their children who comes in a hotel for a room services.

  • Moderate rate

This rate is also called contracted rate. This rate is fixed with travel agencies, airlines, a business organization for a certain period of time.

  • Commercial rate

A special room rate agreed by the company and the hotel for frequent guest which is also known as co-operating rate or special rate.

Basis of charging room rates / fixing room rate


The sale of the rooms contributes more than 50% of total revenue to the hotel. Rooms are charged on the following basis:

  • The 24-hour basis

In twenty-four basis, the room is charged for the stay of 24 hours. If the guest arrives at 10 am today the room charge will cover until 10 am tomorrow. No concession will be given if the guest leaves a few hours earlier. His/her hotel begins at 9 am every subsequent day. There is no fixed check-in or check-out on this basis

  • The 12:00-noon basis (check-in and check-out on time basis)

Generally, hotel day begins at this time. Normally 12 noon is the fixed time for check-in and check-out for the guest. This method is advantageous that a room can be sold twice in the same day. For example, Mr. shahi arrives and check-in a hotel before 12 noon at 10 am and check out within the same day suppose at 9 pm then he is charged for two days. This system is followed by almost all hotels.

  • The nightly basis

Room rates are fixed according to the night spent in a hotel. Guest is charged according to the nights they have spent in a hotel. For example, Miss Verma arrives or check-in in a hotel at 9 am and check-out at next day at 8 am then she is only charged for one night only.

  • Types of customers

Room rates can be increased or decreased according to the purchasing power of the customer or clients. If the guest is regular guest or some commercially important guest then he/she are given some amount of discount if they want but if they are not known guest or not regular guest then they are not given any discount.

  • Operating seasons

Room charge also differs according to seasons. They are fully occupied in pick seasons. For example in Dashain vacations, where people comes to vacation for relaxation, or for winter or summer vacations where many people come to spend quality time with their families. These seasons are called operating seasons of the hotel where guest turnover is very high. During these seasons room rate is charged without any discount. But in off seasons room rate are charged at low rates or at the discount to maximize the flow of guests.

  • Types of plan

The plan taken by the guest also makes the difference in room rates. The guest who takes an expensive plan and which have more facilities are charged more than the guest who take a less expensive plan which has fewer facilities. For example, the guest staying in American plan in a double room pays more than the guest staying in b and b plan in a double room.


Joshi, Basant Prasad, Fundamentals of Hotel Management-XII, Sukunda Pustak Bhandar,Kathmandu

Bhandari, Saroj Sing, Principle of Hotel Management-XII, Asmita Publication, Kathmandu

Oli, Gopal Singh, Hotel Management Principle and practices-XII, Buddha Prakashan, Kathmandu

A perfect tariff card contains following details

  • Heading as a tariff card
  • Name and complete address of a hotel
  • Room type and plan
  • Check -in and check-out time
  • Acceptable modes of payment
  • Discount offer
  • Government taxes and services charges
  • Validity of rates available
  • Types of meal and their rates
  • Rules and regulation of a hotel

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