Net Rates vs Commission Rates for Hotels
Short answer: a net rate is the price the agency pays, and the agency adds its own margin to set the selling price. A commissionable rate is a selling price set by the supplier, from which the agency earns a commission after the stay. Net rates give the agency control of price; commission rates give simplicity.
Part of our guide for travel agencies booking hotels in Vietnam.
Side by side
| Net rate | Commissionable rate | |
|---|---|---|
| Who sets the selling price | The agency | The supplier or hotel |
| Agency income | Its markup, kept at the time of sale | A commission, usually paid after the stay |
| Who the traveller pays | The agency | Often the hotel or supplier |
| Confidentiality | Net rates must not be shown publicly | The selling price is public |
| Suits | Packages, groups, and agencies pricing their own products | Simple room-only sales |
A worked example
A room has a net rate of 100 to the agency. The agency adds a 15% margin and sells at 115, keeping 15 at the time of sale. With a commissionable rate of 115 and a 10% commission, the agency would earn 11.50, paid after the stay. Figures are for illustration only.
Rules that come with net rates
- Net rates are confidential and are not published or shown to travellers.
- Net rates are sold as part of the agency's own product or price, not advertised as a bare discount.
- Where a partner agreement sets public-rate conditions, they apply to the agency's public pricing. See rate parity.
Questions
What is a net rate in hotels?
The price a travel business pays the supplier for a room, before adding its own margin. It is confidential and not shown to travellers.
Are net rates better than commission?
Net rates give the agency control of its selling price and margin; commission rates are simpler for room-only sales. Many agencies use both.
Does Bedtara offer net rates?
Yes. Bedtara quotes partner rates to registered business accounts, and partners resell under their own brand.
Get partner rates for Vietnam
Register your business and request a quote.