Travel glossary
Rack rate
The rack rate is a hotel's standard published price for a room, before any discounts or trade rates.
Travel agents usually buy below rack rate, through net or contracted rates, and the difference funds their margin.
Related terms
Related terms
Net rateA net rate is the price a supplier charges a travel agent or tour oper…Contracted rateA contracted rate is a price agreed in advance between a travel busine…MarkupMarkup is the amount added to a product's cost to set its selling pric…Meal plans (EP, CP, MAP, AP)Hotel meal plans describe which meals are included: EP is room only, C…
FAQ
Common questions
What is Rack rate?
The rack rate is a hotel's standard published price for a room, before any discounts or trade rates.
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