What is a "Rack Rate"

[patiruss]

I am pretty sure that this is a really stupid question and that everyone but me knows the answer. But I keep reading about "Rack Rates". Is the rack rate the cost of renting to a non-DVC member? And if so, where would I find a listing of those rates. (Be kind to this dummy...I am still learning...only bought into DVC in Jan.)

 

[lllovell]

Rack rates are non-discounted rates for a hotel room.

If you go to the disney website, the rack rates by season are there for each hotel.

 

[TW1]

http://www.wdwinfo.com/wdwinfo/resorts/Rack-Rates-2005.htm

This should do it.

 

[Jimmac]

Rack Rate is the equivalent of a car's Sticker Price.

 

[spiceycat]

yea but with WDW new policy more guests are going to pay the rack rate than anyone would on a new car....

 

[patiruss]

Thank you all...

I checked out the site and ....WOW!

 

[rinkwide]

Here in Southern California <i>rack rate</i> is what a plastic surgeon charges to improve a woman's "self-esteem".

 

[CharlesTD]

Yes rack rate is quite expensive for may resorts on Disney property but not out of line for some other cities. Toronto is quite expensive same with Niagara Falls. As for Rinkwides explanation I guess RACK RATE could increase depending on the size of the self esteem increase LOL.

 

[bicker]

Rack Rate is typically very high, because typically a hotel can never legally charge more than the posted Rack Rate (or Rack Rates, for hotels that have a different Rack Rate for each season), and there is typically some work involved in changing the Rack Rate. One main context for the Rack Rate these days is preventing price gouging. With a Rack Rate established, hotels can increase their rates up to that point, due to unexpected higher demand, without fear of being accused of price gouging. The other main context for the Rack Rate is the target of this thread: establishment of a baseline for discounts. Rack Rates reflect the differences in value from room-to-room within a resort, so most discounting can just be an index applied to the Rack Rate.

 

[nhmomx2]

How often does DVC discount the rack rates at their properties? Are there ever any discount codes for the villas?

 

[DebbieB]

How often does DVC discount the rack rates at their properties? Are there ever any discount codes for the villas?

DVC offers 25% discounts on cash reservations to members at the DVC resorts, subject to availability (when they feel rooms will not be rented for points). CRO also occasionally offers discounts on DVC resorts.

 

[nhmomx2]

I knew about the member discount, but I wasn't sure about CRO offering a discount. Thanks...

 

[RobDoc]

CRO has availability at all DVC resorts thru the small percentage (2-4%) retained by DVC to allow for maintenance and mostly thru the points used by members for non-DVC options like the Disney Cruise, Concierge Collection and Disney Collection. In addition, 60 days prior to any date, any villas unreserved by members are made available for rent thru CRO. Discounts may be made available for cash reservations thru CRO for any available dates.

 

[nhmomx2]

Am I correct to say that a discounted room at the BWV'x is not common?