Nett Rate

A supplier's net rate with no commission or markup, from which the final price is built. It represents the base cost the hotel or supplier actually receives, before any agency commission, service fee or margin is added on top. Understanding the nett rate helps companies see how much of the price they pay is the room itself versus added fees.

In the hotel industry, rates are usually either commissionable or net. With a commissionable rate, the hotel sets the selling price and pays a commission to the agency afterwards. With a net rate, the hotel gives the intermediary a lower base price, and the intermediary adds its own margin or fee before selling the room. Wholesalers, bed banks and tour operators often work with net rates, which is why the same room can appear at different prices on different websites.

For corporate buyers, the key question is transparency. When a provider works with net rates, the final price may include a markup that is not visible to the client, making it hard to know how much is being paid for the room and how much for the service. Companies increasingly prefer models where the accommodation price and the provider's fee are clearly separated, so they can compare offers fairly and understand the true cost of every booking.

Tumodo's pricing model is built around this kind of transparency. Accommodation is shown at direct supplier prices with no hidden markups or overpayments, and Tumodo does not charge a service fee for hotel bookings. Companies can see exactly what each room costs, compare options across more than 3.5 million properties and track accommodation spend in real-time reports by trip, team or cost centre, with all documents generated automatically.