What Is a Hotel Rack Rate?

A hotel rack rate is the standard, non-discounted price for a hotel room, before corporate rates, group discounts, or promotional offers are applied. It is typically the highest rate charged for a room and is often used as a reference point when negotiating lower fares for business travel. While leisure travelers rarely pay full rack rates, corporate travel programs and frequent business travelers benefit from securing contracted rates that are consistently lower than the published pricing.

For companies that book hotels regularly, negotiated rates ensure cost predictability and savings, even during peak seasons. Corporate travel agencies work directly with hotels to establish preferred pricing agreements, reducing overall travel expenses while providing employees with consistent, business-friendly accommodations.