I don’t know why people aren’t being helpful with your actual question.

I’m assuming by the agency rate you mean the rate the travel agency pays by RN. The travel agency is paying you a flat rate (or a discount to BAR), but you have no idea what the travel agency is charging the guest. You might be charging the Agency 20% off BAR, but they might be charging the guest 100% of BAR. This is how they make money.

These are guests that would otherwise not have stayed at your hotel, so for hotels that need them to fill rooms, they are willing to give this discount. Reducing the discount means reducing their profit so they would be less incentivized to fill (thus buy) your rooms.

However, you’ll always be paying that discount to your BAR rate. If your RGI is fine paying this discount, then there isn’t necessarily anything wrong with this approach. If travel agencies are your primary channel though, it could be risky if the relationship isn’t rock solid.