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Tourism & Hospitality vocabulary · Sales & Revenue

Net rate

Meaning in tourism & hospitality, with examples

nounCommon term

In tourism & hospitality, net rate means: The price a hotel charges a travel agency or tour operator without commission; the agency adds its own profit before selling to the guest.

In Turkish: net fiyat

How it is used

Common in contracts with tour operators and wholesalers. Hotels work either with net rates or with commissionable rates, from which the agency keeps a commission. Net rates are confidential and should not be shown to guests.

Example sentences

  1. The net rate for the standard room is €70, and the agency sells it for €90.

  2. Please send us your net rates for next summer by the end of October.

Common collocations

  • net rate contract
  • net rates for tour operators
  • commissionable rate
  • net rate plus mark-up
  • commissionA percentage of the price that a hotel or supplier pays an agency or online platform for each booking it brings.
  • mark-upThe amount or percentage that an agency or seller adds to the cost price of a product or service to make a profit.
  • tour operatorA company that puts together holiday packages from flights, hotels, transfers and tours and sells them directly or through travel agencies.
  • allotmentA number of rooms that a hotel gives a tour operator or agency to sell for set dates at agreed rates under a contract.
  • rack rateThe hotel's full, standard price for a room before any discounts, special offers or contract rates are applied.

More terms: Sales & Revenue

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