Private Rate

What is the meaning / definition of Private Rate in the hospitality industry?

A type of discount hotel rate that is negotiated with a travel agency and vendors and then sold to the public. The rate is discounted to allow the vendors and travel agents to generate a profit from the selling of a hotel room.

These discount rates allow hotels to fill rooms which they cannot sell. This allows them to recuperate some cost that they would have lost if they had not sold the room. Online travel agencies in the past have been known to offer hotel rooms less than the hotelโ€™s selling price due to this tactic. An example of such platforms is Kayak.

See also:

  • Promo Codes

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About the Author: Patrick Landman

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.