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Lesson 3

Hotels offer different types of rate plans for rooms. These include the European plan (room only), American plan (room and meals), Modified American plan (room plus some meals), Continental plan (room and continental breakfast), and Bed and Breakfast plan (room and breakfast). Hotels also offer different types of meal menus like a la carte (individually priced items), table d'hote (fixed price for entire meal), and buffet service (self-serve food). Business travelers typically prefer the European plan while groups often choose the Modified American plan.

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263 views2 pages

Lesson 3

Hotels offer different types of rate plans for rooms. These include the European plan (room only), American plan (room and meals), Modified American plan (room plus some meals), Continental plan (room and continental breakfast), and Bed and Breakfast plan (room and breakfast). Hotels also offer different types of meal menus like a la carte (individually priced items), table d'hote (fixed price for entire meal), and buffet service (self-serve food). Business travelers typically prefer the European plan while groups often choose the Modified American plan.

Uploaded by

Nicks Abella
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We take content rights seriously. If you suspect this is your content, claim it here.
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INFORMATION SHEET 3

TYPES OF RATES AND PLANS


Learning Objectives:

After reading this INFORMATION SHEET, YOU MUST be able to:

• Identify the types of rates and plans hotel rooms


• Differentiate the different forms of plans

A hotel normally develops a price range of rates between minimum-


moderate –maximum. These rates are arrived at by evaluating the competitive
and determining the contribution required from room revenue to meet
operational costs and investments.
The moderate rate is often quoted as the rack rate. The rack rate can
however change based on season to a maximum rate or minimum rate.
In addition to the above, reservation agents book rooms by certain
price plans. A plan is package proposal of rooms and meals.
Hotels recognize these varied needs and offer plans to suit their client
profile. These plans are:
European plan (EP) : Charges for the room only

American plan (AP): Charges for room and meals only.

Modified American plan (MAP): Charges for room plus breakfast and lunch
or dinner.

Continental plan: Charges for room and a continental breakfast.

Bed and breakfast: Charges for room and English breakfast.

Business Executives prefer the EP as they are often “wine and dined” by
business clients or have to do the same with their clients. Groups prefer the
MAP that enables them to eat a breakfast before going for the purpose of their
visit, be it sight-seeing or a convention or a training program, etc. An
American plan is chosen by holiday makers who want to enjoy and keep away
from the chores of cooking.
Meal Menus Related to Plans.
A la Carte Menu.
This is a menu in which each food item is separately priced to give the
guest choice to suit his or her taste and budget.
Table d’hote Menu.
This a menu which prices the entire meal, irrespective of whether the
guest avails of the entire meal or not.
Breakfast Menu
There are three types of breakfast menus:
• The English breakfast – juices, cereals, eggs to order, breakfast
meat like bacon, sausage or ham, toasts, and breads and preserves
like jam. Marmalade, and honey followed by tea.
• The Continental breakfast – assorted rolls, preserves, tea or coffee
• American breakfast – an English breakfast with the addition of
waffles or pancake with maple syrup for the sweet toothed, followed
by coffee.

Lunch Menu
These can vary from elaborate meals or light meals depending on
the purpose and culture of the guest.
Dinner menus
These are elaborate as guests have more time and leisure for
eating.
Buffet Service
It is a self-service where food is displayed on the table.

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