Clear, honest reasons behind price differences. A pricing strategy that differentiates rates transparently and fairly, without misleading or discriminating against guests.
📊 What is Ethical Rate Fencing?
Rate Fencing refers to setting clear conditions for accessing specific hotel rates.
The ethical version ensures these fences are justifiable, visible, and respectful, avoiding confusion or unfair treatment.
For example, offering a lower price for early booking or non-refundable stays is acceptable. But showing different prices to similar customers without clear reason may be seen as manipulative.
✅ Why is Ethical Rate Fencing important?
- Maintains customer trust and loyalty.
- Prevents guest frustration over perceived unfairness.
Encourages transparent segmentation based on booking behaviour or service level, not personal data. - Improves clarity in the booking experience.
📘 Real-world example
Your hotel offers three rates for the same room:
- €70: non-refundable, room only.
- €90: free cancellation until 5 days before.
- €120: includes breakfast and late check-out.
→ Each price has a clear rationale, allowing guests to choose confidently.
⚖️ How does it differ from unethical price discrimination?
Ethical Rate Fencing uses objective criteria like advance purchase or cancellation terms.
It avoids showing different prices to identical guests based on opaque factors like location, device, or search history.
👉 If you’re charging more, make sure it makes sense – and say why.
