AP rates are rates for annual pass holders (an annual pass is a pass that you can use for 365 days). They are not always available, but when they are, you can usually get between 35-40% off, so the savings can often be worth the cost of the pass! A lot of people are waiting for rates to be released for late summer!!!
AP stands for annual pass. Annual passholders can get steep discouns on hotel rooms (not packages)sometimes as deep as 45% off rack rate. You must have a valid annual pass. I believe Disney is becoming more strict about the passes as well.
Sometimes in makes sense to buy an AP. If you are planning on staying longer than 8 days and are going to visit a park on each day, then an AP is a wise buy. If you're staying for 12 days and plan to visit a park or water park on each day, then a premium annual pass is the best buy. The PAP gets you in to all 4 theme parks and the water parks for one year. The regular AP gets you into all 4 parks for one year.
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