Rates and quoting

Rate types in inbound tourism: the complete guide by service type

By Outtrip · Published · Updated

An inbound tourism rate is not a price: it is the combination of seven dimensions. Commercial agreement type, pricing unit, segmentation, age and pax structure, supplements, taxes, and commercial terms. Almost every quoting error comes from one of those dimensions missing from the way the agency stores its rates, not from a supplier missing from the catalog.

In the review we carried out in August 2026 of Outtrip's rate model, we counted 13 different commercial agreement types and 11 different pricing units, before even getting into the variants specific to each service type.

Why it matters

A badly modeled rate doesn't fail when you load it. It fails three weeks later, in a quote that has already gone out, with a margin that has already been committed. And because the error lies in how the data is stored rather than in the data itself, it repeats in every quote that uses that service until someone notices.

It is also why many agencies end up quoting in Excel even though they have a system: the system can't handle one of the ways their supplier prices, so that service gets calculated separately. And once a service is calculated separately, the system stops being the source of truth.

The seven dimensions that define a rate

Dimension 1 — Commercial agreement type

Where the margin comes from. This is the most underestimated dimension.

Type What it means
Net Confidential purchase cost; the margin is the agency's markup
Commissionable The public rate is sold and the supplier pays a commission
Tiered commission / override The percentage increases once a volume threshold is reached
Allotment Block of reserved inventory, with a release period
Free sale Open sale with no allotment, instant confirmation
On request Must be confirmed with the supplier before selling
Consignment Paid after the sale
Dynamic / API Not loaded: queried in real time
Spot / ad-hoc negotiated The supplier quoted by email for that specific group
Package / bundle Fixed price for a set of services
Agency fee The agency's own service fee, not a markup on a cost
Price on application (POA) No price, deliberately not quotable
Mixed Partly net and partly commissionable within the same service

Dimension 2 — Pricing unit

Per night, per person, per person per night, per service, per vehicle, per hour, per day, per unit, per leg, per kilometer, per group with tiers.

This is the field that generates the most errors. "USD 120 per double room per night" and "USD 60 per person sharing double" give the same total when two people travel in a double room, no matter how many nights. They stop matching as soon as the occupancy changes: one person alone in the double, or three in a triple. And if the number was stored with the wrong unit, the quote comes out at half or double the right price.

Dimension 3 — Segmentation

When and to whom it applies: validity period, season, blackout dates, weekday versus weekend or public holiday, market (domestic, international, corporate, groups, inbound versus outbound), channel, booking window, minimum and maximum pax, minimum stay, currency and exchange rate.

Dimension 4 — Age and pax structure

Adult, child with configurable age bands, senior, resident versus non-resident, complimentaries such as one free for every N paying, free guide or tour leader, single supplement.

Age bands have to be configurable per supplier: not all of them set the cut-off for children at the same age.

Dimension 5 — Supplements and discounts

Single, extra bed, room category upgrade, meal plan, volume discount, promotions such as 3-for-2, triple or quad reduction, special season surcharge.

Dimension 6 — Taxes and charges

VAT included or excluded, tourist tax or city tax per person per night, service charge, airport taxes, withholding taxes, non-resident exemptions, payment method surcharge.

There is one rule the system must be able to state explicitly: whether the commission is calculated on the gross amount or on the amount net of taxes. It changes the margin and is almost never written down.

Dimension 7 — Commercial terms

Cancellation policy tiered by date, deposit percentage, payment deadline, rate validity, guaranteed price versus subject to reconfirmation, and non-refundable versus flexible —which is the same service at two different prices.

Variants by service type

Accommodation

Occupancy (single to quintuple, and the calculation basis: per room or per person based on X occupancy), room type and category, meal plan —each meal plan is a separate rate or a per person per night supplement—, seasons with non-overlapping validity periods plus special seasons with their own rules, minimum stay per season, blackout dates within an active validity period, per-night price versus fixed package, child policy with a maximum per room, extra bed and crib, early check-in and late check-out as priced items, city tax almost always excluded from the net rate, non-refundable versus flexible, allotment with release period, group complimentaries, and confidential net versus commissionable rack rate — the same hotel can have both.

Activities, excursions and admission tickets

Shared (seat-in-coach) versus private: these are two rates with two different calculation logics. Tiered by pax, where the per-person price drops as the group gets larger. Fixed group price with minimums and maximums. Low-occupancy supplement, which applies when the minimum isn't reached and the minimum is charged anyway. Guide language. What's included —with or without pick-up, with or without a meal, with or without admission tickets—, and each combination is a separate rate. Admission tickets by visitor category, with the resident versus foreigner distinction that is common in the region. Time slot or departure. Operating days, which is not a price but determines whether the activity can be quoted on that day. Operating season. Free guide every N pax. National park fees, often paid in cash at the destination.

Transfers

Fixed price per route based on vehicle capacity — and here there's a common trap: the tier that appears to be "per passenger" is actually a per-vehicle tier (1 to 3 sedan, 4 to 8 van, 9 to 16 minibus). Modeling it as a per-person price gives the wrong number as soon as the group crosses a tier. Then: per person for shared transfers, arrival (IN), departure (OUT) and inter-hotel as separate services, vehicle type and category, night-time and public holiday surcharges.

How to tell whether your system can handle your rate sheet

A quick test: take your three most complex suppliers and check whether you can load their rates without reaching for a calculator and without leaving an explanatory note in a free-text field.

If loading a supplier requires pre-calculating a number, that number gets frozen: when the underlying variable changes, nobody will remember that it needed recalculating. If the clarification lives in a free-text field, the system won't read it, a person will — and only if they remember to look.

What modeling rates well doesn't solve

A good data model doesn't negotiate better rates, doesn't replace the judgment of which supplier to send each group to, and doesn't fix a rate sheet the supplier sent with errors. What it does is more modest and more boring: it makes sure that a rate loaded once is still correct six months later, without anyone having to remember anything.

Frequently asked questions

How many rate types are there in inbound tourism?

There is no fixed list of rates. Instead, there are seven dimensions that combine: commercial agreement type, pricing unit, segmentation, age and pax structure, supplements, taxes, and commercial terms. Outtrip's August 2026 review identified 13 commercial agreement types and 11 distinct pricing units.

What is the most common mistake when loading a rate?

Getting the pricing unit wrong. "USD 120 per double room per night" is not the same as "USD 60 per person sharing double", even though they match when two people travel in a double room. They stop matching as soon as the occupancy changes: one person alone, or three in a triple.

What is the difference between a net rate and a commissionable rate?

With a net rate, you load the confidential purchase cost and the agency sets its margin through its markup. With a commissionable rate, you sell at the public rate and the margin is the commission paid by the supplier.

Why do two agencies working with the same supplier quote different prices?

Because each agency applies its own commercial rules on top of the same base rate: markups, special agreements and client-specific terms.

Outtrip AI is the quoting, itinerary and booking platform for DMCs and inbound travel agencies.

Book a demo

Back to Resources