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Distribution & Technology

What is Net Rate vs. Commissionable Rate?

Turkish: Net Fiyat ve Komisyonlu Fiyat

A net rate is the price a hotel gives an agency, which the agency marks up with its own margin before selling; with a commissionable rate, the agency sells at the hotel's price and the hotel pays the agency a commission on the sale.

Tour operators and wholesalers usually work on net rates: the hotel gives a net rate of €80, and the agency sells the room to the guest for €96. Most OTAs work on the commission model: the guest pays the hotel's rate, and the hotel pays a commission on the sale amount.

To see which model is more profitable, compare the net amount the hotel actually keeps from each channel.

OTA Commission and Direct Booking Calculator →

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