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Tour & Activity Industry Terms

What is a Group Rate?

A negotiated rate for a party, event, convention, or other organized group.  The group rate is not publicly available and may or may not be made available through an online booking engine.

When negotiating a group rate, the group organizer will provide the tour operator with a guaranteed number of participants for their tour.  In exchange for having a known number of customers, the tour operator provides the organizer with a discounted rate per person.  This discounted rate is generally some percentage discount based on the rack rate of the tour.  The group rate can be created in the tour operator software by using a promotional code which, when applied, sets the rate to the discounted group rate, or the tour operator can create a separate private inventory item with group rate pricing.

Once a negotiated group rate has been set, the operator can provide the group organizer with a private link that allows the group members to book their tour online.  Because the link is private, the operator does not need to worry about the general public booking the tour.  Once the tour is complete, the tour operator can generate a report on the revenues generated by the group.

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