What does rack rate mean?

[3prettyprincesses]

I've read the term here and there and wondered what it means. Also, if you receive free dining, I've seen people say you're paying "rack rate" prices. Can someone explain this to me please? Thanks!

 

[DebbieB]

I've read the term here and there and wondered what it means. Also, if you receive free dining, I've seen people say you're paying "rack rate" prices. Can someone explain this to me please? Thanks!

Full price - no discounts. It's a hotel industry term.

http://www.mousesavers.com/roomrates2012.html

For example, say a deluxe room is $400 rack rate. They offer a 40% discount - you pay $240. If you want the free dining plan, you pay $400. So you have to weigh the difference to see if it's worth it.

 

[TabithaCaine]

Rack rate is the full listed price for a room, with no discounts applied. So if you have a pin code or room-only promotion, and you're offered free dining, you have to choose between the discount of free dining or the discount on the room.

 

[TheRustyScupper]

1) Hotels used to have pigeon holes for room keys. *
2) This was known as the "rack".
3) The desk clerk grabbed the room key from the the rack.
4) When you left for the day, the key was returned to the rack.
5) Many times, you checked-in without a ressie or advance notice.
. . . you went to the desk
. . . you signed in
. . . you paid the clerk the full room cost (rate)
. . . you got the key
6) Thus, the room price was the rack rate.
7) The term now means a non-discounted (list) room price.

* Behind the Grand Floridian front desk is a wall full of simulated
room keys in a key "rack". Or, watch any late-night gangster movie.