Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
FIGURE 3
Rack rates for the Altoona Hotel.
Effective 1/1/200X
Room type
Rack rate
Standard double
$109
Standard king
$119
Executive double
$149
Executive king
$164
Executive double (
concierge level
)
$199
Executive king (concierge level)
$214
Double parlor suite
$269
King parlor suite
$289
272

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its own unique rack rate. Even the smallest of hotels have several room types and,
therefore, multiple rack rates.
Some hotels experience strong seasonal demand. For example, hotels near moun-
tains that are good for skiing have high occupancy during the ski season but may
experience lower occupancy in the off-season and will likely respond by varying rack
rates. These hotels, then, have a seasonal rate that is higher (or lower) than the stan-
dard rack rate.