Lesson 6: Room Rate Structure

Question 1

Room Rate Designations

Answer 1

Rack rate
Corporate rate
Government rate
Seasonal rate
Industry rate
Walk in rate
Advance purchase rates
Half-day rates

Question 2

understood to be the highest published rate a hotel can charge for a specific room.

Can differ between room types, configuration and designation.

Answer 2

Rack rates

Question 3

this designation is designed to promote the corporate market segment. It is offered generally to any guest who knows to ask for it.

reflects a 10 to 20 percent discount off of the rack rate.

Answer 3

Corporate rate

Question 4

federal and/or state governmental agencies set predetermined rates
that they will reimburse their traveling employees for.

Answer 4

Government rate

Question 5

resorts and other location types that see a fluctuation in demand due to
weather or the operation of a nearby attraction will vary their rates accordingly.

Answer 5

Seasonal rate

Question 6

those who work in the travel industry (travel agents, employees from other
hotels, meeting planners, etc.) are often extended the professional courtesy of discounted rates.

Can vary from 30 to 50 percent off rack rate, depending on the location and
seasonality factors.

Answer 6

Industry rate

Question 7

this type of rate designation may vary from night to night. A walk-in is a hotel
guest who arrives without a reservation.

Answer 7

Walk in rate

Question 8

offers a greater discount based on the number of days in advance it is booked.

Answer 8

Advance purchase rate

Question 9

these rooms are often utilized for just a few hours to conduct interviews and
small conferences. Because the room is not used for the entire night, a half-day rate may be assigned based on half the value of the rack rate.

Answer 9

Half day rates