Think of an STO rate sheet as a specialised pricing document used to provide your contracted tour operators with their negotiated rates. It allows the tour operators to access the contracted, discounted rates that they use when packaging and reselling your rooms as part of their tours.

• STO rates are usually net rates - non-commissionable
• Valid for specific dates or seasons
• Come with clear booking conditions
  • such as payment terms cancellation rules, and allotments

STO Rate Sheets should only be used when you want to provide your contracted booking channel (ie. a tour operator) with the set of rates you've contracted with them.

This is a wholesale rate - it's your standard rate, less the commission that you agreed with the booking channel (agent/operator).

Let's explain this using an example.

• Your standard rate is R 1000, and your negotiated rate with the contracted booking channel (agent/tour operator) is 25% off your standard rate.
  • The booking channel (tour operator) rate is then R 750.
• The booking channel (agent/operator), who is making a booking on behalf of the guest, then adds their commission onto the negotiated rates before they give it to the guest.

Based on this example,

• the guest is charged R 1000,
• the property will receive 750 (the wholesale rate), and
• the agent earns the R 250 difference.

While your RACK rate is also a rate sheet, this is your standard rate that already includes/accommodates for commission. Generally properties include a 15% commission into their standard RACK rates. This is a current industry standard for commission and most booking channels charge around 15% commission.