DECADECA Travel and Tourism Practice Exam

What is a group rate in the context of hotel reservations?

1. A discount for large tourist groups only

2. A discounted room rate for reserving a block of rooms

3. A fee for joining a travel club

4. A standard rate for all guests at a hotel

The correct answer is: A discounted room rate for reserving a block of rooms

A group rate refers specifically to a discounted room rate that is offered to clients who reserve a block of rooms at a hotel. This type of rate is commonly utilized by organizations, travel groups, or events where multiple rooms are needed for a single group, such as for conferences, weddings, family reunions, or tour groups. By reserving a set number of rooms, the group benefits from a lower per-night rate compared to standard bookings. This discount structure is designed to encourage bookings from larger parties, as hotels prefer to fill multiple rooms at once rather than having them booked individually at standard rates. Group rates can often include additional perks, such as complementary breakfast, parking, or room upgrades, further enhancing their appeal to groups. In contrast, the other choices do not fully capture what a group rate entails. For example, suggesting that it is a discount for large tourist groups only restricts its application, as group rates are available to a broad scope of organizations and gatherings, not exclusively tourist groups. A fee for joining a travel club points to membership benefits rather than room pricing strategies, and a standard rate for all guests does not reflect the nature of discounts associated with bulk bookings.