LRA

Definition

First, the definition — very soberly:

Last Room Availability (LRA)
The (company) rate for the last available (hotel) room (regardless of the available category).

The LRA is of greatest importance when it comes to company contracts. Here, the hotelier guarantees the contract customer that he will provide him with the last available room at the agreed company rate. And that regardless of the category. The contracts are either made directly by the hotelier or by Revenue Manager closed with companies/customers.

However, there are also some online booking platforms today that insist on a regulation regarding the LRA in their contracts with hotels.

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Related terms

NLRA is the opposite: It is an agreement between a hotel and a customer, according to which the negotiated rate is only available to travelers at the hotel's discretion. That means hotels can block NLRA rates during peak hours and charge a higher price to maximize their revenue.

LRTA: Last room type availability. Here, the hotel can promise the customer the availability of the contract rate up to the last room in a specific category.

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Opportunities and risks

As many contract partners consider LRA important, the hotelier has the chance to offer a rate with LRA higher than without LRA (NLRA). This also applies, for example, when there is good seasonal occupancy. This is because he has a certain quota for this customer and guarantees delivery at the agreed price.

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However, it also means, of course, that the hotel can no longer make the booking decision 100% independently. The last available room must go to the room seeker with a contract and cannot be sold at a higher price to a walk-in or via your own website.

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Of course, it must also be ensured that when the last room has been sold — regardless of whether LRA or NLRA — the availability in the booking channels is adjusted.

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