Generally, we distinguish two types of rates. These are:
1. negotiated rates
2. yieldable rates
“Negotiated rates” have been agreed upon previously. Since an agreement or contract has been entered accordingly, the rate cannot be changed. Examples for negotiated rates are corporate rates, group rates, allotment rates.
“Yieldable rates” are those which are automatically opened and closed by the yield system. The decision as to when a rate is open or closed depends entirely on one particular value: the hurdle, which is the opportunity cost. Normally, this would be the net accommodation revenue, which a rate must obtain in order to be opened. If the net accommodation revenue would fall lower than this value, the rate is closed.