Net Rate(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.
Net rates are the foundation of tour operator economics. Lodges contract net rates with operators, who then add a markup to create their selling price. The difference between net rate and selling price is the operator's gross margin. Net rates are typically confidential and vary by operator based on volume, relationship, and contract terms.
Managing net rates across dozens of suppliers, multiple seasons, and different room types is one of the most complex parts of running a safari business. A single lodge might have 6+ rate tiers across high, shoulder, and low seasons, each with different child, single, and sharing rates.
How Ratiba helps
Ratiba stores contracted net rates by supplier, season, and room type — then automatically applies the correct rate when an operator adds a property to an itinerary.
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.
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.
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%.
High Season
High season is the peak travel period when demand and prices are at their highest. In East Africa, high season typically runs from July to October (dry season, Great Migration) and December to February (short dry season).
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