Net fare
A fare sold net of commission. The seller adds markup or service fees to achieve margin, rather than earning commission from the supplier.
With net fares the supplier does not pay commission; the agency earns by adding markup and fees. This requires precise pricing controls so the same search returns compliant, profitable prices for each market, cabin, supplier and agency tier.
Invoices and taxes differ from commissionable sales. Markups and fees should be itemised with correct GST/VAT treatment, and the order must store the supplier’s net price and the buyer’s sell price so ledgers and statements align.
Merchant vs agency model also matters. In merchant flows the platform collects from the buyer and remits to suppliers; in agency flows the supplier charges the traveller and commission is accrued separately. Net fares can appear in either model and must be handled accordingly.
In the Elkanio platform, Nucleus applies rule‑based markups per tier, supplier and route with effective dates and currencies. Vector calculates tax, posts journals and keeps the payable/receivable picture clear for reconciliation.
What teams often get wrong
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Are net fares always cheaper than public fares?
Not always. Public or NDC dynamic prices can beat a net contract on some dates or routes. Show sources side‑by‑side and pick the best offer per search.
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Is markup applied once per PNR no matter what?
Markup should be rule‑driven per item, currency and tier, then combined with fees. Hard‑coding one percentage per PNR leads to revenue leakage and compliance issues.
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