What Is the Rack Rate at Hotels?


The rack rate at hotels represents the highest possible rate a guest may be charged for a room. However, with a little planning, a traveler can easily avoid paying the rack rate.

What Is It?

  • The rack rate is the full, published room rate and does not contain any discounts. The rack rate also does not take into account any taxes or surcharges. It is generally posted on the wall or door of the hotel room itself as the maximum amount the hotel may charge for the room.

When Is It Charged?

  • In many instances, the rack rate is quoted when calling a hotel for a reservation. Without further prodding, the telephone reservation agent may not offer an available discount rate. The rack rate is also charged when a guest arrives without a reservation and requires a room for the same night. As a result, the rack rate is also commonly known as the "walk-up rate."

Advance Reservations

  • An advance reservation is the best way to prevent paying the rack rate. Hotels utilize yield management in the same fashion as the airlines and regularly adjust room rates based upon demand. If rooms for a given period of time are being reserved quickly, the hotel will continue to increase the rate up to the maximum, or rack rate.

Ask for a Discount

  • Reservation agents are able to search for discounts and offer them to the caller when requested; not asking for a discounted rate will result in the rack rate's being quoted. Membership in certain organizations such as the Automobile Club or AARP provides discount benefits at many hotel chains.

Use Online Discounts

  • Internet booking sites offer many discounts to travelers making reservations through their interface. The hotel's own website will also offer discounts off the rack rate, with higher discounts often available for prepaid, nonrefundable rooms. Opaque booking sites offer significant discounts during slow periods for hotels or at the last minute if rooms are still available and would otherwise remain empty.

Related Searches


Promoted By Zergnet



You May Also Like

  • What Does Rack Mean in Wine Making?

    Racking or clarifying wine is the step in the wine-making process in which the wine is siphoned out of one container and...

  • What Is a Fuel Rack Price?

    Gas prices can vary and change at a rapid pace, even between different gas stations in the same town. One of the...

  • How to Get Corporate Travel Discounts

    With travel costs increasing annually, travelers need all the help they can get to keep prices down. Saving money on hotels, rental...

  • How to Get Group Hotel Rates

    Most hotels will work with groups because it's an easy way to get more rooms filled. That's why so many of them...

  • How to Make a Hotel Reservation

    Comfortable and convenient lodgings'whether in a large hotel or a small bed-and-breakfast'will make your trip more pleasant. Here's how to arrange for...

  • How to Get The Best Hotel Rates

    Spending too much on accommodations eats up the vacation budget, leaving less money for entertainment. Many travel expenses, like gas and food,...

  • How to Increase Revenue in Hotels

    Because they operate in a competitive industry, hotels must continually look for ways to augment their products and services to remain financially...

  • How to Get Corporate Rates on Motels

    Getting a corporate rate on a motel often requires just one thing: asking. Most chain motels have a corporate rate. They are...

  • How to Rate Hotels

    Hotel ratings take a number of factors into account. There are many different rating systems, each with its own specific criteria. Some...

Related Searches

Check It Out

How to Travel For Free With Reward Points

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!