What aspect of a hotel's pricing structure is defined by "rack rate"?

The term "rack rate" refers to the standard price set by a hotel for its rooms, without any discounts or promotions applied. This is essentially the highest price that a guest would pay for room accommodations, serving as a baseline for comparison against discounted rates, special promotions, or other offers. Understanding rack rate is important for both consumers and hotel operators as it provides insight into the hotel's pricing strategy and how discounts may be applied.

Promotional rates for loyal guests and discounted rates for extended stays are separate pricing strategies aimed at encouraging customer loyalty or long-term bookings, and they would be lower than the rack rate. Package deals, which might include meals, represent an entirely different offering that combines services for a single price.