rack rate vs online rate - hotels

kittykate_2

Hi

Please could someone help me, I'm so confused at the moment. Am trying to book an hotel room for an anniversary present for my parents and it's coming up with rack rate and online rate. It says that the rack rate is for bed, breakfast and tax and the online rate is breakfast and tax. If I picked the online one it is £58 but the rack one is £180 - massive difference. I'm really confused.

Kate x

buyitall

Rack rate is the standard rate which has not been discounted. The different rates may have different terms and conditions eg whether you can cancel etc.

dzug

The rack rate is what you would pay if you walked into the hotel and asked for a room. If you booked it now you would (probably) be able to cancel at short notice without penalty.

The internet rate is for booking and paying in advance - no refund (probably) if you cancel.

kittykate_2

thanks guys. so if i went for the online rate then my parents wouldnt have to pay anything when they get there. i'm just worried as it is £122 cheaper! which seems mental!! is there usualy such a difference?

buyitall

The rack rate is sometimes artificially high, like a RRP which no-one actually ever pays! The only down side I would say is that one time the room I was given in a London hotel was extremely small, but I didn't feel that I could complain as I'd only paid £20 for B and B!

kittykate_2

aaah right, that makes sense. it seemed a bit crazy to have such a difference in pricing

jamescredmond

kittykate wrote: »

aaah right, that makes sense. it seemed a bit crazy to have such a difference in pricing

crazy it certainly is but it's been industry practice for years. I have travelled quite a lot and I've NEVER paid rack rate whether through an agency or direct. the disparities can be as much as 80%, which proves the rack rate a nonsense EXCEPT: walking in off the street, as mentioned earlier, or booking during an 'events' period. e.g. rugby internationals or the 5 star grand hotel in brighton during the tory party conference a few years WHICH COMPLETELY !!!!!!ED UP MY PLANS FOR THAT WEEK!. I could blame the tories for a lot of things but that was unforgivable..............

dzug

It's quite normal.

They don't know if they will get that £180 rate until it's paid on checkout. If it's a business hotel (and it sounds as though it is) they will get a lot of last minute cancellations and therefore empty rooms.

That internet rate they are sure of getting as soon as you book it.

Bit like Ryanair selling flights for 1p booked in advance and £150 if you turn up on the day.