Hotel Revenue Glossary · Pricing

Net Rate

The wholesale rate a hotel provides to a third party (tour operator, wholesaler, or OTA) who then marks it up to sell to the end consumer. The hotel receives the net rate regardless of the final selling price, and the intermediary keeps the markup.

Why it matters: Net rate agreements shift pricing control from the hotel to the intermediary. Revenue managers must monitor how net rates are being resold to prevent undercutting of the hotel's own public rates, which can create rate-parity violations.

All glossary terms Rate Parity OTA (Online Travel Agency) Distribution Channel