Net Rates vs Commission Rates for Hotels

For travel agencies · Guide

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 rateCommissionable rate
Who sets the selling priceThe agencyThe supplier or hotel
Agency incomeIts markup, kept at the time of saleA commission, usually paid after the stay
Who the traveller paysThe agencyOften the hotel or supplier
ConfidentialityNet rates must not be shown publiclyThe selling price is public
SuitsPackages, groups, and agencies pricing their own productsSimple 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.

What is a bedbank Rate parity White-label vouchers

For agencies

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