Group rate vs Corporate (LRA) vs Dynamic — side-by-side, with the contract clause for the winner.
How to use: Fill the seven inputs below. The calculator computes the effective rate for each model — including attrition exposure on the group rate, commission load if you cannot recover it, and a default ceiling on the dynamic rate. The winner is the lowest effective per-room-night cost. Switch to the clause tab to copy the matching contract language. Print-friendly via your browser's print menu.
A · Inputs
Cell
Input
Value
B2
Corporate (LRA) rate per night (€)
B3
Group rate per night (€)
B4
Public BAR for the dates (€)
B5
Dynamic discount off BAR (%)
B6
Block size — peak rooms / night
B7
Number of nights
B8
Expected pickup (%)
B9
Attrition allowance (%) — typically 20
B10
Date flexibility
B11
Is commission useful to you?
B · Effective rate comparison
Winner—
Rate model
Headline (€)
Effective / room-night (€)
Program total (€)
Corporate (LRA)
—
—
—
Group
—
—
—
Dynamic (capped)
—
—
—
—
C · Contract clause for the winning rate type
D · Decision tree (one-page summary)
Pick the structure that matches your event profile
Block ≥ 15 + pickup ≥ 80% + date flex → Group rate. Add a small LRA fallback for self-bookers outside the block.
Block ≥ 10 + pickup 60–80% → Stacked rate. Small group block for definite attendees, LRA corporate for everyone else.
Block under 10 rooms peak → Corporate (LRA) only. Group discount will not exceed corporate concession at this volume.
Fixed high-demand dates → Corporate (LRA). The LRA value compounds in tight inventory.
Wide booking window around the core program → Corporate (LRA). Group block only covers contracted nights.
Stable BAR + soft window + commission recovered → Group rate. The textbook case.
Volatile BAR + branded chain offering dynamic → Dynamic group rate (capped). Ceiling clause is non-negotiable.
Negotiated Corporate Rate & Last Room Availability.
The negotiated corporate rate of €[X] per room/night, single or double occupancy, shall apply to all bookings made under [COMPANY] account [ACCT NUMBER] for the contract term [START]–[END]. The rate shall be available on a Last Room Availability (LRA) basis, meaning the rate shall remain bookable until the Hotel is fully sold out of the contracted room category, and shall not be subject to yield restriction, blackout dates, or revenue management close-outs.
The Hotel shall extend the rate at all distribution channels accessed under [COMPANY] account, including direct booking, GDS, and corporate self-booking tool. The rate shall be net of commission unless otherwise specified in writing.
The Hotel reserves the right to amend the rate annually with sixty (60) days' written notice; the amended rate shall not exceed the prior year's rate plus the local CPI hospitality index for the preceding twelve months.
[COMPANY] reserves the right to audit availability quarterly. The Hotel shall provide, upon request, a sample of the previous quarter's booking attempts showing rate availability on the booked night and the night prior.
Group Room Block & Negotiated Group Rate.
The Hotel shall hold a contracted block of [N] rooms per night for the dates of [DATE RANGE], at a negotiated group rate of €[X] per room/night, single or double occupancy. The rate is commissionable to [AGENCY] at [COMMISSION %].
Attrition. [COMPANY] shall be permitted an attrition allowance of [Y]% against the contracted block. Attrition fees shall be calculated only on the difference between (a) [100-Y]% of contracted room-nights and (b) actual rooms picked up, and shall be assessed at [Z]% of the group room rate, excluding tax and service charge. The attrition cutoff date is [DATE]; reductions notified in writing before that date shall not incur fees.
Sell-Out Mitigation. If the Hotel is fully booked on any night in the block period at the time of release, [COMPANY] shall not be liable for attrition on that night regardless of pickup against the contracted number.
Rate Parity. The Hotel acknowledges that the contracted group rate may be distributed via a private booking code or gated link to [COMPANY]'s attendees and shall not pursue any parity claim against [COMPANY] for such distribution.
Dynamic Group Rate with Ceiling.
The Hotel shall extend a dynamic group rate equal to the public Best Available Rate (BAR) less [N]%, for all rooms booked against the contracted block during the dates of [DATE RANGE]. Notwithstanding the dynamic structure, the dynamic group rate shall not exceed €[CAP] per room/night under any circumstance ("the Ceiling"). If BAR less [N]% would yield a per-night rate above the Ceiling, the per-night rate shall default to the Ceiling.
BAR Reference Date. For the avoidance of doubt, BAR shall be measured on the date the booking is made, not on the date of arrival, using the Hotel's publicly-quoted lowest unrestricted rate for the relevant arrival date on its own direct channels.
Audit Right. [COMPANY] may request, upon reasonable notice, a sample of BAR values used to compute the dynamic rate during the contract term. The Hotel shall provide screenshots or system records sufficient to verify the rate computation for any booked night.
Attrition and parity provisions of the Group Rate Clause apply to the dynamic group rate in the same form.