Understanding the Concept of Net Fare and Net Rate
Net fare and net rate refer to the prices of travel services that already include the commission or mark-up fees charged by the travel supplier or agent. This means that the price quoted to the customer is the final price that they have to pay, with no additional or hidden charges.
Unlike gross fares and rates, which show the price before the commission is added, net fares and rates are more transparent and convenient for both the travel seller and buyer. With net fares, the travel agent or agency can easily calculate their profit margin and avoid price disputes with the customer. On the other hand, the traveler can compare the prices of different travel providers more easily and accurately, without having to guess or inquire about the commission rates.
Net fares and rates are commonly used in the travel industry, especially for air tickets, hotel accommodations, and tour packages. They are also a common practice in the online travel business, where travelers can easily search and book their trips on different websites or platforms without having to worry about hidden fees or mark-ups.
Overall, net fares and rates provide a more transparent and efficient pricing system for both the travel industry and the customers, eliminating confusion and mistrust in the travel booking process.
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