What is the definition of Private Rate in the hotel industry?
A type of concession hotel price that is bargained with a travel organization and vendors and then sold to the community. The rate is inexpensive to permit the vendors and travel agents to make a profit from the selling of a hotel room.
These discount rates permit hotels to fill up rooms which they cannot sell. This permits them to convalesce 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 hotel’s selling cost due to this approach.