Net rate
/net rayt/ · noun
DefinitionThe price a hotel, transport company or wholesaler charges your agency, before you add your markup or commission.
In more detail
Suppliers give agencies a net rate, often lower than the price they show the public. The agency adds its own margin on top to set the price the client pays. That margin can be a percentage, a fixed amount, or built into a package price.
When you sell through partner agencies, it can work the other way round: you give the partner a net rate, and they add their markup before quoting their client.
Worked example5 nights · double room
Net rate from the hotel$180 a night × 5 nights$900
Your markup15% on the net rate+ $135
Price the client pays$1,035
Your margin on this stay: $135
Also called
Nett rateWholesale rateContracted rate