"Net rate" is the most important phrase in B2B travel — and the most misunderstood. For a travel agent, understanding how a destination management company prices keeps your margin where it belongs: with you. Here is the plain-English version.
What a net rate is
A net rate is the confidential, trade-only price a DMC charges your agency. It is not the published or rack rate a consumer sees, and it is not commissionable in the traditional sense — instead, you add your own mark-up and sell to your client at whatever price your market supports. The difference is your margin, set by you, on every component: hotels, transfers, guiding, excursions and MICE.
Why net rates beat commission for agents
- You control the price. Mark up high-touch trips more, stay lean on competitive ones.
- The rate is confidential. Your client never sees the underlying cost, so your pricing stays protected.
- Everything bundles. One net price per file covers all ground services, quoted in your working currency.
How settlement works
Quotations are issued in your currency with dedicated multi-currency receiving accounts, and every payment is confirmed in writing. Credit terms are agreed up front, and a single consolidated invoice per file keeps reconciliation clean — even across multi-city, multi-country itineraries.
The bottom line
Net rates plus a DMC's ground accountability mean you keep the client relationship and the margin, while the operator carries the on-the-ground risk. Across the Explera network, the same logic applies in every destination — so your pricing model never changes market to market.
