Travel agents and tour operators have the option of choosing between commissionable rates
& Static/Nett rates from hotels. The Commissionable rate applies to scenarios where hotels provide
the travel agents with the option to sell their rooms for a fixed sum decided by the hotels,
for which the travel agents receive a set percentage as commission.
The disadvantage of this method is for travel agents is that they must charge the Retail price set by the hotel. Plus, the travel agents will be handicapped especially in seasonal high demand periods when they might be able to get bulk orders from customers through promotional offers, but instead feel restricted as the prices and percentage of commissions are fixed by the hotels.
