Configuring and using net rates in TourCMS

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Where do I find it?

CONFIGURATION > SYSTEM & SETUP > Net rates

What does it mean?

Net rates are an alternative way of working with travel agents and other distribution partners, instead of using travel agent commission.

With travel agent commission, you set a retail price and give the agent a commission on that price:

• Example:

  • Retail tour price: 100 USD

  • Travel agent commission: 10%

  • The agent pays: 90 USD (100 – 10%)

  • The booking in TourCMS still shows a 100 USD sale price with 10% commission.

With net rates, the agent sees and pays a net price, and there is no commission on the booking:

• Example (equivalent outcome):

  • Retail tour price: 100 USD

  • Net rate set for that agent: 90 USD

  • The agent pays: 90 USD

  • The booking in TourCMS is created at 0% commission, with a 90 USD sale price for that agent.

In practice:

• Travel agent commission is applied at tour level, for all dates on that tour.

• Net rates can be applied:

  • Per net rate tier (groups of agents, e.g. “Top-level agents”, “Regular agents”),

  • To specific date bands (e.g. only for a particular month),

  • To specific rate types (e.g. only adults),

  • To specific tours or departures (e.g. only afternoon tours).

You can, therefore, be much more granular in how you price for different partners and dates.

When to use net rates

Net rates are typically used when:

• You have commercial contracts with agents that specify fixed or percentage-based net prices.

• Large online travel agencies (OTAs) or distributors request net pricing over API (for example, Trip.com may require net rates via API).

• You want to run promotions or manage yield in a way that automatically keeps partner prices aligned with your retail offers.

• You need different price structures for different groups of agents (e.g. wholesalers vs. small local agencies).

Net rates are a more advanced concept. It is usually best to:

1. Start with travel agent commission.

2. Introduce net rates later for certain agents or scenarios where the commercial terms require it.

How net rates interact with retail (sale) prices

Net rates can work in two ways:

1. Percentage off the retail price (recommended)

   • You define net rates as, for example, 20% off the retail price.

   • If you create a special offer that reduces the retail price for a particular date (e.g. next Wednesday), the net price will also reduce automatically for agents using that net rate tier.

   • This means distributors are also incentivised to promote those discounted dates.

2. Fixed net rate

   • You hard-set a fixed net amount (e.g. 90 USD, regardless of the current retail price).

   • This is ideal for seasonal or contracted rates agreed in advance, especially for larger partners.

If your TourCMS account base currency is not USD, you can still create fixed net rates in USD. These will only be distributed through USD sales channels, allowing you to offer fixed USD net prices to major US-based travel websites.

What should I do?

This section explains how to configure net rates in TourCMS and provides examples of how to use them.

1. Enable net rates for your account

1. Go to: 
   CONFIGURATION > SYSTEM & SETUP > Agent general settings.
   

2. Turn Net rates ON.

   1. By default, new accounts use travel agent commission and net rates are off.

This enables net rates as a feature for your account.

2. Grant user permissions

Only users with the correct permissions can create and edit net rates.

1. Go to: 
   CONFIGURATION > USERS

   

2. Click on PERMISSIONS & MAIN SETUP for the user you want to configure.

3. Scroll down to Products & Services.

4. Tick View & edit net rates.

5. Save your changes.

Repeat this for each user who should be able to manage net rates.

3. Create net rate tiers

Net rate tiers allow you to group travel agents by their commercial terms.

1. Go to: 
   CONFIGURATION > SYSTEM & SETUP > Net rates

2. Create one or more net rate tiers based on how you work with your agents. For example:

   • One tier per agent (e.g. “Agent A – 20%”, “Agent B – 25%”), or

   • One tier per percentage (e.g. “Net – 20% off”, “Net – 30% off”), or

   • Groupings such as “Regular agents” and “Top-level agents”.

Best practices for tiers:

• You can create unlimited tiers, but initially try to keep the number low (for example, a maximum of five).

• Example structure:

  • Tier 1 – Top-level OTAs and major distributors

  • Tier 2 – Regular travel agents

  • Tier 3 – Special contract partners

Each tier will have a default net rate percentage that will be applied when you use that tier on tours.

4. (Optional) Set a default net rate tier for new agents

To automatically assign a tier to newly created agents:

1. Go to: 
   CONFIGURATION > SYSTEM & SETUP > Agent general settings

2. Choose a Default net rate tier for new travel agents.

3. Save your changes.

From now on, new agents will automatically receive this default tier (which you can still change later on a per-agent basis).

5. Assign a net rate tier to each agent

You can allocate a specific net rate tier to each travel agent.

1. Go to: 
   PARTNERS > MARKETPLACE AGENTS

2. Find the agent by name or agent ID and click Manager for that agent.

3. Select the relevant channel and click the settings wheel icon next to the envelope.

4. Scroll down and select the appropriate Net rate tier for that agent.

5. Save your changes.

You can change this at any time.

If an agent has very specific commercial terms, it is advisable to create a dedicated tier for them and assign it here.

6. Configure net rates on the tour

Once net rates are enabled and tiers are configured, a new Net rates section appears at tour level in PRODUCTS > TOURS.

When you open a tour:

• You will see a default (green) net rate.

• This is the default percentage you defined for the relevant net rate tier (for example, 20% off retail).

• If you are happy with this default, no additional configuration is required for that tour.

If the net rate should be different on this tour:

1. Select the correct net rate tier at the top.

2. Adjust the net rate percentage for this tour only. Changing the percentage of a specific net tier here applies exclusively to this tour.

You can also create individual date band rules within the Net rates page:

• Add a new rule for a specific date range (for example, a particular month).

• Optionally limit the rule to specific rate types (e.g. adults only) or particular trips (e.g. only afternoon departures).

• Copy the existing rule (the default rule in green) and edit the new net rate rule details after creating it, or delete it.

• Once created, you can edit it and restrict it to specific departments, product notes, or supplier notes.

• Multiple rules may overlap. In that case:

  • Date-specific rules take precedence.

  • The default rule is always the lowest priority and is used only when no more specific rule applies.

This allows you to run targeted promotions and fine-tune net rates for particular periods or products.

7. How net rates are applied in bookings

Once everything is set up:

• In the staff booking engine, net rates are applied automatically when:

  • You start a booking, and

  • Select an agent that is configured to use net rates.

    

• If several net rate rules apply to the same tour:

  • Date-specific rules override the default net rate for the tier and tour.

• Net rates apply to:

  • Tour departures,

  • Options, and

  • Tour freesale.

This ensures that all relevant elements of the booking use the appropriate net pricing for the agent.

8. How net rates are returned in the TourCMS API

For API-based distribution, some TourCMS API endpoints also return information on net prices. In particular, this applies to:

• Check Availability

• Show Tour Departures

The behaviour is:

• When net rates are configured

  • Net rates are always applied, even if travel agent commission is also configured.

  • If the net rates are configured as fixed amounts (not percentages), the API will no longer return the fixed amount itself as the net price. Instead, TourCMS calculates an equivalent percentage and applies it to the sale price when returning the net price.

  • Example:

    • Sale price: 10 EUR

    • Net rate (fixed amount): 2 EUR

    • Net price returned by the API: 8 EUR

• When a commission is configured but no net rates are

  • The commission is applied to the sale price, and the net price in the API response will be the sale price minus the commission.

• When neither net rates nor commission are configured

  • The net price in the API response will be equal to the sale price.

9. Practical examples

Example 1 – Seasonal fixed net rates for a contracted partner

You have a seasonal contract with a wholesaler to sell a tour for a fixed net amount of 90 USD, regardless of your retail price.

You create a dedicated net rate tier for this partner with a fixed net rate of 90 USD for the relevant season.

Even if you change your retail price for public sales, the partner continues to see 90 USD net, as agreed in the contract.

Example 2 – USD-only net rates for US-based distributors

Your base currency is EUR, but you work with major US-based websites that require fixed USD net rates.

You configure fixed net rates in USD within the net rate tier used for those distributors.

These fixed USD net rates are only distributed through USD sales channels, ensuring consistent pricing for those partners while you continue to manage your primary business in EUR.

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