What is a “Rack Rate”?

In case you have ever wondered what a so called Rack Rate is in hotel language, here’s your chance to finally find out!

A rack rate or published rate, often displayed in the guest room, used to be the hotel’s room only official or standard rate which varied by room category.

It served as maximum price from which all other discounted rates were calculated. Typically, actual sales rates represented a more or less large discount.

In recent years, the term rack rate has gone out of fashion. Nowadays it is called Best Available Rate, Best Flexible Rate or Regular Rate. Sound familiar?

At the end of the day all that matters is the overall offer to the consumer with the components rate, tax and service charge, any extra perks and benefits as well as cancellation and payment conditions.

Enjoy safe travels with whatever rate!


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