Which statement about Rack Rate is accurate?

• A. It is the base price after discounts
• B. It is the standard, non-discounted price
• C. It changes with loyalty tiers
• D. It is only available to corporate clients

Answer: (B)

Rack rate is the standard, non-discounted price a hotel publishes for a room. It’s the baseline price before any discounts, promotions, or negotiated rates are applied, so it represents what you’d pay if you didn’t have loyalty discounts or corporate rates. For example, if the published rate is $200 per night, that’s the rack rate; discounts from loyalty programs, corporate agreements, or promos would reduce the amount you actually pay. It’s not something that changes with loyalty tiers, and it’s not exclusive to corporate clients—any guest can be charged the rack rate if no discounts apply.