Net rate & Rack Rate
Effective Tours supports two rate models. You can choose them while editing the hotel
Nett Rate – Sometimes called tourist agencies rates, or in a simple words the lowest rate you can give to the OTA. Later on, while sending the actual rates to the channels, or to your direct agent, you can use the [markups] to make the rate higher. This model is mostly in use by the hotels and tourist agencies.
Rack rate – The final, end user price. Means the price you are selling the rooms to the guests including all charges and interest. This kind of rates are most popular for the small guesthouses, when you don’t want to separate agents and channels by the groups. In case of the Rack Rate, markups will work in reverse way, means with markups you can provide the deduction from the Rack Rate price. So let’s say the Rack Rate is 100$, and the Markup is 10%, then by applying this markup to the prices for the hotel with Rack Rate , it will reduce the price to 90$. This feature is useful if you want to send Tourist Agents rates for some of your agents.
On this diagram, you can see, how ET calculate the rates depending of your pricing model
Our initial Effective Tours set-up video uncovers this topic in details.