rack rate?

crltkcagle · #1 02-13-2008, 07:08 PM

would somebody please explain to me what rack rate means? I usually catch on to disney stuff really quick but the rack rate thing i can't figure out. thanks

FlaTinkRAMESAM · #2 02-13-2008, 07:26 PM

it is the top rate for a room at a hotel that they charge for it. Basically, no discounts...

magicofdisney · #3 02-13-2008, 08:23 PM

Additionally, rack rate changes with the season. For example, a value resort during value season will run $82 plus tax (without a discount). During the holiday season, that same room will run around $139 plus tax (without a discount).

Polynesian Dweller · #4 02-13-2008, 09:18 PM

Rack rates are usually set at an artificially high level. It is not what the hotelier expects to get for the room but is used to so that discounts can always look sizeable even though the discount may only bring the rate down to what the hotelier actually expects to make on the room. If you are paying rack rate you are paying too much.

That rack rate may or may not adjust by season, there's no hard and fast rule on that. Many hotels never change it so that shoulder seasons and low seasons look like major discounts. That's mostly a marketing issue though in some jurisdictions there can be laws/bylaws or tax regulations that impact on how high the rack rate can be set. By the way I used to be a co-owner of a hotel so this comes from experience.

CleveRocks · #5 02-14-2008, 02:10 AM

"Rack rate" is a hospitality industry term. It's not a Disney term at all. Think of it as "full price" or "list price" or if it were a new car think of it as "sticker price."

crltkcagle · #6 02-14-2008, 09:36 AM

ok so if i do free dining plan in september and i am stay at por the room price will increase from the $149.00 a night? When we did free dining last year we still paid $82.00 a night at ASM. Just trying to figure this out. thanks

TBY2225 · #7 02-14-2008, 09:40 AM

No, they won't charge you more than the stated rack rate, you just won't be eligable for special rates. So, if you do free dining and Disney announces a room special at say the value resorts for $69 a night, you cannot get that deal with the free dining. I guess it is Disney's way of saying, you cannot combine offers!

raider97 · #8 02-14-2008, 09:45 AM

Not if that is the rate listed for the room for that night. Rack rate can mean different things at different hotels. Rack rate at Disney usually means the rates they have listed for that room for that season without any discounts. Does that make sense?

From what I see the rack rate is $149 for POR both weekday and weekend nights during September.

HTH!!

tink2006 · #9 02-14-2008, 09:50 AM

How do you avoid paying the rack rate? Where do you go for the discounts?

raider97 · #10 02-14-2008, 10:04 AM

Watch for public discount codes.

Private pin codes are sent out randomly from Disney. I have never gotten one.

But people suggest you sign up for everything you can from Disney, request a planning DVD, etc. Anything that might get your name on a mailing or emailing list. You can also call and check if you have a pin code attached to your name. Good luck!!

TheRustyScupper · #11 02-14-2008, 11:11 AM

Rack Rate History:

1) Older hotels had a "rack" where keys were kept.
2) You saw people pull keys from these pigeon holes in old movies.
3) When you checked-in, you registered and they pulled the key.
4) Usually these registrations were walk-in or last minute.
5) So, you got the highest "rate".
6) Thus, you paid "rack rate".

NOTE: To keep in the tradition of "racks" the Grand Floridian has a mock "rack" behind the Front Desk. It is the only WDW hotel to have one.