Definitions for "Average Rate"
Keywords:  hotel, perishable, tour, rack, weighed
The average of your daily room rate at the hotel during the dates of your stay.
A figure, calculated from the rates of a series of deals, that indicates the price level required to create a zero profit and loss on closing out an existing position.
Average rate is actually a measure of the weighed average price or rate for a given perishable asset based on the number of units sold at the different price levels. An example in the hotel industry occurs when rooms with two queen-sized beds are sold at different prices (for example, rack rate, corporate discount, tour promoter package rate, etc.). In this case, average rate acts as a pricing efficiency measure.