Rack rate意思

"Rack rate" is a term used in the hospitality industry, specifically in reference to hotel pricing. It refers to the full, undiscounted rate that a hotel charges for a room, also known as the "best available rate" or "standard rate." This is the rate that is typically listed in hotel brochures, on hotel websites, and through booking agents.

The term "rack rate" is believed to originate from the old practice of hotels displaying their room rates on a rack in the hotel lobby, where guests could see the prices before making a reservation.

In reality, most hotels do not expect to receive the rack rate for most bookings, as they often offer discounts, special rates, or packages to fill their rooms. These can include corporate rates, negotiated rates for large groups, travel agent commissions, online booking discounts, and special promotions. The rack rate is more of a benchmark or starting point for negotiations and is rarely the actual price paid by most guests.

Hotels may use the rack rate as a reference for the maximum price they could charge, or as a way to make their discounted rates appear more attractive to potential guests. It's important to note that the rack rate is not always the highest price a hotel can charge; hotels can and do charge more for premium rooms, suites, or during peak seasons or special events.