What is the origin of the phrase 'rack rate'?

Answer 1

Before computers and electronic displays were up, and before the hotel industry talked about revenue management, hotels were operating with only one rate. Hotels used to print their house rates on brochures which are then placed on a brochure rack. These rates are usually the highest, as innkeeper's friends will have gotten a discount off the usual rates.

Thus, if a guest checks-in without any prior reservation, he will be shown the rate on the brochure on the rack (i.e. not a preferential rate). Thus the advent of the term "Rack Rate"