Selling Travel 101: Deciphering Hotel Rates
by John Hawks

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Take a look at this quick introduction to the major types of hotel rates for agents:

1. GDS Rates

These prices reflect the traditional rates that hotel chains and individual properties load into the different global distribution systems (GDSs) like Amadeus, Galileo/Apollo, Sabre, and Worldspan. On the CCRA screens, these rates are identified by the “P” and “C” icons. You can earn 8 to 10 percent commission on these reservations, less the 1 percent CCRA fee. These bookings are not prepaid; instead, your clients will pay the final bill when they check out of the room. CCRA will receive commissions from the hotels up to six weeks after the guest’s departure, and in turn CCRA will pay you within one week of receiving those funds from the hotels. (CCRA also tracks those commissions and collects for you.)

2. CCRA Merchant of Record (MOR) Rates

These prepaid net rates will give you the best of both worlds. Generally, you can give your clients lower rates than they’ll find even on sites like Hotels.com -- but, you’ll be able to build in higher commissions for yourself in the process!

There’s one catch that makes this equation work, though: These are prepaid net rates. To lock in the steeper discounts, your clients will be required to pay for the rooms upfront -- so, they should purchase travel insurance or be completely sure about their travel plans before they decide to go the net rate route. One big advantage for you (beyond the higher pay!) is that CCRA will pay your commissions within two weeks of the booking date. You’ll find these rates on the CCRA screens with the “N” icon. CCRA offers a Dynamic Calculator that you can use on the screen to calculate the markup you wish to add for yourself into the final rates charged to your clients.

IMPORTANT: Don’t miss this key point! By spending a few more minutes reviewing pricing options for your clients, you can lock in better deals for them and increase your hotel sales earnings dramatically. During her recent Webinar, for example, Liz demonstrated how an agent could have booked a pre-cruise stay at a hotel in Miami with an amazing 85 percent markup for the agent, while still giving the clients lower rates than they would have found on the Internet!

Internet Discount Rates

CCRA works with Hotels.com to offer these prices. In general, they’re the same rates shown for each property on the Hotels.com site itself. You’ll earn 7 percent commission for these bookings, which Hotels.com will pay to CCRA on the 17th working day of the month following guest checkout (and, in turn, CCRA will pay you within a week). Note that this pay rate is 2 percent higher than you would have earned registering directly with Hotels.com as an affiliate!

How can you decide which rate type to offer your clients? CCRA’s system will display the different pricing options on your screen. You can use the Dynamic Calculator and the prepaid Net Rates to figure out the best discounts for your clients. Or, if you prefer, you can go directly to the other posted rate categories, including the Internet Discount Rates (i.e., the Hotels.com price).

Remember this promise from CCRA: CCRA’s hotel partners have guaranteed that your clients will not find a lower non-restricted rate via any distribution channel! That includes the GDSs, Internet third-party sites like Hotels.com, and even each hotel’s own Web site.

(Image credits: CCRA)