trip gain

Net Fare, Net Rate

What is Net Fare, Net Rate?

Net fare is the unpublished, base cost of an airline ticket that airlines offer to travel agencies, corporations, or consolidators before adding service fees, commissions, or taxes. It allows businesses to control pricing, bundle travel services, and optimize travel budgets for corporate travel. Similarly, net rate applies to hotel rooms, car rentals, and other travel services, referring to the discounted wholesale price offered to corporate buyers or travel agencies. These rates provide flexibility for reselling or packaging services, benefiting businesses that manage travel for employees or clients. By leveraging net fares and net rates, companies can negotiate better deals, reduce overall travel costs, and maintain profit margins while offering competitive pricing to travelers.

Examples Of Net Fare, Net Rate
1.
Corporate Travel Cost Savings
A Company Secures Net Fare Airline Tickets And Net Rate Hotel Rooms For Employees, Reducing Travel Expenses.
2.
Travel Agency Revenue Model
An Agency Books Net Fare Flights And Net Rate Accommodations, Adding A Margin Before Selling To Clients.
3.
Tour Package Creation
A Corporate Event Planner Bundles Net Rate Hotels And Flights Into A Single Package For Business Travelers.
Frequently Asked Questions About Net Fare, Net Rate
1.
How do net fares and net rates benefit corporate travel?
They help businesses lock in lower rates, control pricing, and reduce overall travel spending through bulk or negotiated agreements.
2.
Are net fares always cheaper than public fares?
Not always—while they offer consistent pricing and flexibility, some promotional public fares may occasionally be lower.
3.
Can individual travelers access net fares or net rates?
No, these are typically reserved for businesses, travel agencies, and corporate travel programs with volume agreements.
4.
Do net fares and net rates include additional perks?
Sometimes—corporate agreements may include flexible cancellation policies, upgrades, or waived fees depending on the provider.
5.
How do companies track savings from net fares and net rates?
Businesses use travel expense management tools to compare negotiated rates with standard fares and monitor cost reductions.