Hotel Revenue Glossary · Distribution

Net Rates vs Gross Rates

Two models for pricing hotel rooms through intermediaries. Gross rates are the published rate from which the intermediary deducts their commission after the guest pays. Net rates are wholesale prices the hotel provides, and the intermediary adds their own markup before selling to the guest.

Why it matters: The choice between net and gross rate models affects pricing control. With gross rates, the hotel sets the retail price. With net rates, the intermediary controls what the guest pays, which can lead to rate undercutting or parity violations if not managed carefully.

All glossary terms Net Rate Commission Structure Rate Parity