Understanding Net & Commissionable Rates

Why Offer Commissionable or Net Rates?
As a supplier on Reposite, offering commissionable or net rates can significantly elevate your appeal to professional meeting & event planners. These rates are not just numbers; they symbolize your understanding and readiness to engage with professional planners. By demonstrating your comfort with these rates, you signal to planners your potential as a long-term, reliable partner which will result in consistent repeat group bookings for your business.
.

Is Offering Net / Commissionable Rates Required?
The short answer: No, it's not mandatory. At Reposite, we respect your business autonomy. While a majority of our suppliers choose to offer NET or commissionable rates, it's entirely up to you. It is important to put yourself in the shoes of our professional planners, for example, many of our third party planning partners rely entirely on commission from their preferred suppliers as their source of income so they will be much more inclined to go with you if you are willing to offer some form of commission in return. 

What is a Commissionable Rate?
A commissionable rate is prevalent among professional third party planning agencies, travel management companies, and host travel agencies. Here, the supplier offers their product at market price, but post-service, reimburses the planner a percentage of the transaction value. 

We recommend adding 7-15%, with industry standard being 10%. By being willing to offer commission to Reposite planners you will get your foot in the door with the largest third party meeting and event planners in the world. These large agencies are home to hundreds, sometimes thousands, of independent meeting and event planners. By offering commission to one and delivering an exceptional experience for their clients, you can spark word-of-mouth referrals that quickly multiply into significant new business opportunities.

Example
A hot air balloon company lists $100 rides on its website. It has an agreement with Smith Travel Co for a 10% commission on ticket sales. Smith Travel Co purchased the $100 ticket using the client's credit card, and post-ride, the balloon company pays Smith Travel Co a $10 commission. 

What is a Net Rate?
Net rates mean that suppliers offer their product to planners at a discounted price. This type of rate is more commonly requested from our direct corporate clients, tour operators, and Destination Management Companies. Clients benefit directly from these cost savings making them more inclined to come back to you for repeat business. The industry average for NET rates depends on the type of planner, on average it ranges from 10-30%. Partnering with local corporate companies provides direct access to key decision-makers for events, leading to quicker turn around times for booked business. It’s equally as important to build strong relationships with your local Destination Management Companies (DMCs) —they are the destination experts who focus exclusively on planning in your city and can drive significant repeat business your way. Both of these planner types typically request NET rates.

Example
The same hot air balloon company offers Smith Travel Co a net rate of $70/ride. Smith Travel purchases the ticket at this rate and invoices their client for the full retail price of $100, pocketing a $30 difference or passes along the $30 cost savings to their client as a perk of booking through them!
.

How Does Reposite Help?
Identifying the appropriate rate to offer can be tricky. Reposite simplifies this through detailed planner profiles, helping you understand the type of rate that would appeal to a specific planner. Our platform highlights whether a planner is seeking a net or commissionable rate in RFP responses, removing any guesswork. Pro Tip: When preparing your line-item quote, be sure to include the commission percentage you’re willing to offer. Planners can generate a report of all RFP supplier responses, including the commission rates quoted, but only if you click CREATE QUOTE. Offering competitive commissionable rates significantly boosts your chances of converting RFPs into bookings on Reposite.

Beyond Rates: The Value of Education with Reposite
Understanding rates is just the beginning. Every annual Reposite membership includes access to an array of resources, including an exclusive four-part seminar by renowned travel industry experts ALON Tourism Solutions. These resources equip our supplier members with the ability to delve deeper into the travel industry's intricacies, empowering them to stand out and grow their business. Reposite offers additional marketing opportunities for the suppliers in our network willing to offer competitive commission to our network of planners, interested in learning more about these opportunities? Email repositecommunity@cvent.com