Room Rate

Designations
Lesson 2
Rack rate
Highest published rate a
hotel charges for a specific
room
Corporate rate

Widely accepted as the transient target rate for

most hotels; typically reflects 10-20% off the rack
rate Corporate Accounts – companies or
institutions usually with special credit
arrangement with the hotel.
 Also called preferred rates,
corporate rate is further
discounted in exchange for a
Volume guaranteed number of room
account rates nights within specific time frame
(monthly, quarterly, or yearly)
 Rates that match the
Government rate per diem of this group
 Per rate set by government agencies
reimbursable by their traveling
employees
diem
Seasonal rates

BASED ON DEMANDS DUE TO WEEKDAY/ WEEKEND RATES

WEATHER OR THE OPERATION OF BASED ON DEMANDS DURING
A NEARBY ATTRACTION CERTAIN DAYS OF THE WEEK.
Industry rate
Discounted rates extended to
those who work in the travel
industry (travel agents,
employees from other hotels,
meeting planners, etc.)
Advance purchase rates

Adopted from the airline industry;

offers a greater discount based on
number of days in advance it is booked
(Guaranteed reservation)
 Applied to any room
that offers something
Premium rates “extra” (E.g. Rooms with
special view)
 Assigned based on half of the rack rate to a
Half-day room not used for the entire night (E.g.
Airport hotels)
rates
Package rates

Bundling – packaging the hotel room with

another service or amenity often pricing the
package less than the cost of purchasing the
items separately (E.g. Meal, vacation and
meeting)
Per person rate
Preset amount for each
additional occupant