A hotel usually design standard rate for each room. This rate is generally called as room rate. Room rates are most of the time settle in times of registration. Assigning rates for walking guests depend on front desk agent. There is a term used in hotel industry called “room rate designation”. It defines in which position specific room rates should be taken over other room rate hierarchy. Now, we will discuss some common hotel room rates:

1. Rack Rate: Rack rate is the highest rate charged by the hotel for a specific room. Although it is the highest rate but it does not mean that a hotel gain most profits by this. Often selling a room for some less price ensures repeat guests which is much beneficial than this one.
2. Corporate Rate: The rate designed for business people. 2 types of guests may enjoy this type of rate. One is that businessman who stays in a hotel frequently per month or week. Another beneficial is guests from a company, who has contract with the hotel.
3. Group Rates: Offer for a group of people coming together. Generally marketing or sales department settles this rate prior to their coming.
4. Family Rate: During seasonal or promotional time, hotels offer this rate to encourage families to come with their children. Sometimes hotels offer some extra facilities like young children, under specific age may not be charged.
5. Package Rate: This is one of the latest inventions in hotel industry which gets immense popularity. It includes goods and services included with room rent. Generally hotel offers such rate in off season or as a part of their promotion. American plan, is a modified version of package rate which includes meals like breakfast or evening meal with the room rent.
6. Complementary Rate (COMP): This is the only type of rate when a guest does not charge at all. Most of the time management person of a hotel or top employees of a company get such rate which is done to increase hotel’s goodwill.
7. Half day Rate: Sometimes some businessman needs a room for some few hours or a lawyer may need a room for sometimes to ensure privacy. In this types of cases such rates can be offered where a guest stay in the hotel for some specific hours of the day.

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