Hotels operate a vast range of rates for the rooms in their hotels. They will have the standard rates, rates for the loyalty club members, corporate rates, leisure rates, advanced purchase rates and much more. Hotels even go as far as operating different rate for different nationalities.

We have explained the different rate options below and also when you would need to pay for the hotel reservation based on the different rate types.

Tour Operator Rates

Tour operator rates, which we provide you access with, are net rates (non commissionable). Most tour operator rates will offer a number of benefits over the rates featured on a hotel’s own direct sales channel such as their website and call centre. They key advantages are:

• Generally at least 20% – 25% less than the rates on the hotel’s direct sales channel
• Value added benefits which can include
  • Free Breakfast
  • Free Half Board and sometimes even Full Board and All Inclusive
  • Welcome gifts such as free drinks, fruit basket
  • Complimentary spa treatments
  • Complimentary meals
  • Free nights
  • Complimentary space available room upgrades
  • Honeymoon benefits and discounts
  • Free airport transfers
  • Discounts at hotel outlets on other services

Tour operator rates cannot be sold as a stand-alone product and must be packaged together with flights, cruise, car hire or tour. A tour operator rate will generally not need to be paid for until about 4 weeks before departure, UNLESS the rate is a non refundable rate, in which case it must be paid at the time of booking. You make money on these rates by adding a profit margin.

These rates will NOT qualify for points under the hotels loyalty programme.

Travel Agent Rates

These rates are generally identical to the rates offered on the hotel website. The key difference is that the rate will be commissionable. The typical rate of commission is between 10-12%. Most travel agent rates require the customer to pay on arrival at the hotel. The room is guaranteed by the customer’s credit card and generally can be cancelled up to 48 hours prior to arrival. Failure to cancel will generally result in a penalty of 1 night. Once the guest has paid the hotel for their stay, you will be entitled to claim your commission.  

These rates WILL qualify for points under the hotels loyalty programme.

Corporate Rates

Corporate rates are live and can be booked using the hotel’s travel agent booking platform or on the GDS. Your corporate client will have a Corporate code which you will use to access their rates. The corporate rate is commissionable in the same way as the travel agent rate. You secure the reservation with the client’s credit card and the client will pay upon check out. You will be entitled to claim your commission once the client has completed their stay.

Corporate rates will allow clients access to:

• Discounted Rates
• Value Added benefits
• Upgrades
• Bonus Miles

These rates WILL qualify for points under the hotels loyalty programme.

Educational Rates

Educational rates are offered by hotels to encourage agents to come and experience their product. The rationale behind this is that the agent will be able to promote the hotel more effectively and therefore more likely to sell it. Educational rates can be as much as 80% less than the standard hotel rates and therefore represent exceptionally good value. The only downside of this rate type is that you can only book one room for personal stay and therefore won’t help travel if you are travelling with your family.

Educational rates are also generally more limited in availability and also restrict stays to a maximum number of days – typically in the region of 3-5 days. To qualify for the educational rate, you will generally need to complete an online training programme with the hotel group. In addition you will need to present an IATA ID card at check in to qualify for this rate.

The educational rate requires you to guarantee the room with your credit card and pay for the room on the day of checkout.

Industry Discounted Rates

This is a straightforward discounted rate which travel agents can book for themselves for their personal travel and doesn’t come with the restrictions of the educational rate. The rates are often 50% less than the standard rates. You can generally book multiple rooms for longer stays. There is also generally more availability on industry discount rates than on educational rates. You will need to present an IATA ID card at check in to qualify for this rate.

The industry discount rate requires you to guarantee the room with your credit card and pay for the room on the day of checkout.

The Caveat

We have provide a general overview of the typical rules that apply to the different rate types. When it comes to booking a hotel room, you will see the exact rule that apply to the rate prior to confirming. These may differ to the general rules we have stated above.