Rack rate

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What is the rack rate?

It is the standard rate or published tariff defined by the hotel management for a particular room category/type. These rates are always without any sort of discount, so they are kind of the maximum price in most situations. So they say, you could consider them 'the ideal price' from a management perspective.

The counterpart is the last-minute price, though there are many more pricing systems than just these two. The relationship among cost (price), sales price and profit is to be found in RevPAR.

More info online on sites like: Traveltips or Why are these rates so high?.



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