A net rate (or travel agent rate) in the hospitality industry is the lowest room price for resellers without their commission.
Here’s how it works. Hotels distribute their inventory through multiple channels such as OTAs, wholesalers, tour operators, DMCs, etc. Hotels can either pay a commission to resellers (most OTAs operate on this model) or offer them a cheaper, bulk rate – a net rate. In the second scenario, resellers add their markup on top of the net rate and resell rooms to travelers – either as part of a package or on their own.
Net rates are usually fixed and are not subject to dynamic pricing.
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