A net rate is a room price given to a distribution partner with no commission included. The partner adds its own margin before selling to the public. Net rates are the standard model for wholesalers and bed banks.
With net rates, the hotel receives exactly the agreed amount and loses sight of the final selling price. This is efficient for bulk distribution but risky, because a partner can resell below the hotel's public rate and create parity conflicts.
Contracts should restrict where and how net rates can be resold, and monitoring should verify compliance. When a net rate appears publicly undercutting the hotel's own website, the problem is contractual, and the evidence from parity tools is what supports the claim.
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