Hotel-tech glossary

Closed-User-Group Rate

A rate available only to a defined customer segment (members, loyalty, corporate).

A closed-user-group rate is offered to a specific defined segment (loyalty members, corporate clients, government, AAA) and is not bookable by the general public. CUG rates sit outside rate-parity clauses in most jurisdictions because parity applies to publicly-bookable rates. The mechanism is the legal basis for offering meaningfully lower direct rates without violating OTA contracts.

Related terms

Rate Parity

The principle that a hotel offers the same public rate across OTAs and direct channels.

Direct-Only Rate

A rate plan exclusively available via the property's direct channels, never via OTAs.

Part of the hotel-tech glossary. Maintained by Maciej Dudziak, founder of Guestivo.