The rack rate is the baseline, non-discounted price of a hotel room, historically printed on brochures displayed on a rack at the reception desk. It serves as the legal maximum the property can charge for that room type. In practice, very few guests pay the rack rate, as properties offer corporate, seasonal, or loyalty discounts, but it remains the benchmark against which all percentage discounts are calculated.
Heard on the job
The rack rate on this suite is four hundred dollars, but with the corporate code it comes down to two-fifty.
Insider tip
Hotel managers are legally required in many jurisdictions to post the rack rate on the back of the guest room door to prevent price gouging during major events.
Also heard as
- published rate
- walk-in rate