Hoteliers would prefer to sell rooms at the highest possible rate, this is known as the ____.

The term that refers to the highest possible rate hotels aim to sell their rooms is known as the rack rate. The rack rate is the standard pricing that hotels display for their rooms, without any discounts or promotions applied. It represents the maximum charge for a room, reflecting the property's value and what they believe guests may be willing to pay.

Targeting the rack rate allows hoteliers to maximize revenue, as it serves as a benchmark against which discounts and special offers are measured. When this rate is successfully achieved, it can effectively enhance the hotel's profitability. While other rates, such as promotional or discount rates, are used to attract specific guests or during particular times, the rack rate remains essential as it establishes the baseline pricing strategy for the hotel.