Commission
Commission is the percentage of the selling price that a lodge or operator pays to a travel agent or referring partner for each booking. Standard safari industry commissions range from 10% to 20%.
Commission is the alternative to the net-rate model. Instead of receiving a discounted price and adding markup, the agent sells at rack rate and receives a commission payment after the trip. Some operators use a hybrid model — paying commission to agents while working on net rates with their own suppliers.
For operators who work with agents, managing commission payments, tracking which bookings came through which agent, and ensuring commission is factored into pricing is an ongoing operational task.
How Ratiba helps
Ratiba tracks commission structures per agent and factors them into pricing calculations, so operators always know their true margin after commission payouts.
Related terms
Rack Rate
The rack rate is the published, full-price rate for an accommodation — before any trade discounts, commissions, or special offers are applied. It is the "retail" price that a walk-in guest or direct booker would pay.
Net Rate
A net rate is the discounted, trade-only price that a lodge or supplier offers to tour operators and DMCs. It is lower than the rack rate and is not visible to end clients.
Travel Agent
A travel agent sells trips on behalf of tour operators and earns a commission on each booking. In the safari industry, agents connect travelers with specialist operators who build and execute the itinerary.
Markup
Markup is the percentage or fixed amount that a tour operator adds on top of the net (cost) rate to arrive at the selling price. It represents the operator's gross profit on each component of the trip.
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