Definition of Rack rate:
The term used in the hospitality industry is used to describe the price of a person applying for accommodation on the same day without a prior booking agreement. The price shown is usually more expensive than when the user uses a travel agent or third party supplier. Prices may vary depending on the day of the room application. For example, the price published on the weekends may be higher, which is often a busy day.
Public or advertised hotel room rates are usually discounted.
How to use Rack rate in a sentence?
- Sometimes, if the hotel is empty on that day, you can get a better deal for the stated price.
- Many hotels have increased their publishing rates to continue offering great discounts.
- I need to know the prices at the hotel because I can't blow my budget and I have to make sure everything is fine.
- Since the Smith family had not reunited the hotel room with the travel agent a week earlier, they had to pay a regular price, much higher than the reservation. One bedroom
Meaning of Rack rate & Rack rate Definition