net rate

Refers to the confidential, pre-commission price that a hotel or other accommodation provider agrees to charge a travel intermediary—such as a tour operator, wholesaler, or travel agency—before any markup is added for the end customer. It represents the underlying value of the room or package in the business-to-business transaction, separate from the public selling price.…

rack rate

Is the standard, published price for a hotel room or accommodation unit before any discounts, promotions, or negotiated rates are applied. In the hospitality industry, it represents the property’s official “full price” for a given room type, set according to category, location, seasonality, and market positioning. While guests rarely pay this figure in highly competitive…