You are just one click away from requesting STO Rates from properties located all over the World.
Searching by destination or property type, tour operators and travel agents can view properties on a map and get the average per night rate. Then by simply clicking on Request Rates, their information is sent to the correct person who deals with sto rates and contracts at the property they selected. Agent’s save time by not having to find out who they need to contact and more importantly, they are assured that their email reaches the correct person thereby getting the properties sto rates as quickly as possible to service their clients booking requirements timorously.
“The quickest way to get STO Rates from a property & deal direct”
STO = Standard Tour Operator
STO Rates are special wholesale rates that hotels and tourism providers offer to tour operators or travel agents, so they can resell travel packages at a marked-up price to the end customer.
🔍 In Detail:
🔹 1. Wholesale Price
Example:
A hotel room that costs $200 to the public might be offered at $140 as an STO rate to a tour operator.
🔹 2. Reselling Margin
🔹 3. Contracted Rates
💡 Why Do Hotels Offer STO Rates?
🧾 Quick Example:
Room Type | Public Rate | STO Rate | Tour Operator Sells At |
Deluxe Room | $200 | $140 | $170–$190 |
The tour operator earns $30–$50 per room per night.
To qualify for STO rates, an entity usually must:
Be a registered travel business: This includes tour operators, travel agencies, Destination Management Companies (DMCs), or wholesalers.
Prove they will resell the service: STO rates are meant for resale as part of a travel package, not for personal or direct use.
Meet minimum booking volumes: Some providers require a history or commitment of a certain number of bookings per year.
Sign a contract or agreement: This outlines terms like net rates, payment conditions, and cancellation policies.
Have a valid business license or industry credentials: Proof like an IATA number, TIDS (Travel Industry Designator Service), or other certifications may be required.
Who does not qualify:
Individual travelers
Corporate clients (unless working through a travel agent)
Unverified or non-licensed travel bloggers or influencers (unless under special partnerships)
✏️ Example:
A boutique hotel in Bali offers STO rates to a German tour operator. The operator books 200 nights over the year. The hotel might earn less per room, but it gains reliable revenue, off-season guests, and visibility in the European market without spending extra on marketing.
❌ Cons of Offering STO Rates
🎯 Bottom Line
STO rates are best used as part of a diversified distribution strategy — not your only sales channel. They’re great for reaching new customers and ensuring steady bookings, but they work best when balanced with direct sales and other partnerships.
Offering STO (Sell To Operator) rates to tour operators, rather than relying solely on online booking engines (OTAs) like Booking.com or Expedia, can bring a number of strategic and financial advantages to establishments such as hotels, resorts, and attractions. Here’s a breakdown of the benefits:
🔹 1. Guaranteed Volume of Bookings
Tour operators often commit to a certain number of bookings in advance. This allows establishments to:
🔹 2. Upfront Payments / Reduced Cancellations
With STO agreements:
🔹 3. Lower Commission Costs
🔹 4. Stronger B2B Relationships
Working with tour operators allows establishments to:
🔹 5. Access to Niche and International Markets
Tour operators often specialize in:
🔹 6. Better Revenue Management & Flexibility
🔹 7. Less Dependency on OTAs
Relying too much on OTAs can:
Having tour operator contracts diversifies income sources and reduces that risk.
Here’s a quick comparison chart highlighting the key differences between STO (Sell To Operator) rates and OTA (Online Travel Agent) bookings:
Aspect | STO (Sell to Operator) | OTA (Online Travel Agent) |
Pricing Model | Net rate (wholesale price); operator adds their markup | Commission-based (typically 15%–25% of retail price) |
Booking Volume | Often involves bulk/group bookings or pre-agreed allotments | Individual bookings, often spontaneous |
Payment Terms | Prepaid or invoiced with set payment terms | Paid via OTA after guest checks in (minus commission) |
Cancellation Rate | Low – often non-refundable or stricter terms | High – many bookings are cancellable until close to check-in |
Market Access | Niche and international markets through operators’ networks | Global market via searchability and wide online reach |
Control Over Guest Data | More direct communication via operator | Limited guest data access; OTA controls the relationship |
Brand Visibility | Less online brand visibility (operator represents you) | High visibility but brand may be diluted among competitors |
Revenue Predictability | Higher – due to contracted bookings and upfront payments | Variable – depends on real-time demand |
Marketing Support | Included in operator’s packages, brochures, or guided tours | You handle your own listing optimization and promotions |
Rate Parity Requirements | No (you control rates per operator) | Yes – many OTAs require same or better rates than elsewhere |
Here’s a detailed example of an STO (Special/Standard Tour Operator) contract or agreement between a Tour Operator and a Hotel or Resort (Establishment). This type of contract is used to outline the terms under which a tour operator can sell a hotel’s rooms at a specially negotiated rate, often at a discount for bulk or advance bookings.
📝 SAMPLE STO AGREEMENT
Between: Tour Operator & Hotel/Establishment
This Agreement is made on [Date], between:
Room Type | Rate per Night (USD) | Meal Plan | Season |
Deluxe Room | $110 | Bed & Breakfast | Low Season |
Deluxe Room | $150 | Bed & Breakfast | Peak Season |
Ocean View Suite | $180 | Bed & Breakfast | Low Season |
Ocean View Suite | $240 | Bed & Breakfast | Peak Season |
For Global Travel Adventures Ltd.
Signature: ________________________
Name: Jane Morgan
Title: Contracting Manager
Date: ___________________
For Ocean Breeze Resort
Signature: ________________________
Name: Rafael De Vera
Title: Director of Sales
Date: ___________________
In tourism, STO 1, STO 2, STO 3, etc., usually refer to Seasonal Tariff Options (sometimes called Standard Tour Operator Rates) at different levels. Hotels, resorts, and travel suppliers often use STO rates to offer discounted net rates to tour operators who then resell them to customers.
Each STO level generally means a different price point or commission structure, depending on the volume of business or type of partnership the tour operator has with the hotel or supplier.
Here’s a comparison chart to make it super clear:
| Feature | STO 1 | STO 2 | STO 3 | STO 4 (if applicable) |
|---|---|---|---|---|
| Meaning | Base Tour Operator Rate | Better discounted rate | Even deeper discount | Highest level of discount |
| Who gets it | New or small volume agents | Medium volume agents | High volume or preferred agents | VIP partners / Key accounts |
| Discount Level | Low | Moderate | High | Very High |
| Sales Target | None or Low | Moderate sales commitment | High sales commitment | Very High or exclusive targets |
| Commission Margins | 10%-15% approx. | 15%-20% approx. | 20%-30% approx. | 30%+ approx. |
| Contract Flexibility | Standard terms | Some flexibility (e.g., room upgrades) | More negotiation room | Highly customizable agreements |
| Payment Terms | Prepayment / Strict terms | Slightly flexible | Flexible | Very flexible, post-payment options |
| Availability | Standard inventory | Priority inventory during peak times | Higher room allotments | Guaranteed inventory in high demand periods |
| Examples | Small agencies, new OTAs | Mid-size tour operators | Big tour operators, wholesalers | Global distribution partners |
✅ Simple explanation:
STO 1 = Basic wholesale price
STO 2 = Better discount for better volume
STO 3 = Special discounts for high-producing agents
STO 4 = Elite deals for top-performing global partners
When a hotel or resort offers an STO rate to a tour operator, they get paid based on the agreed NET rate, not the final selling price the guest pays.
The payment flow typically works like this:
Booking Confirmation:
The tour operator confirms a reservation at the agreed STO rate.
Guest Stay:
The guest stays at the property (sometimes handing in a voucher as proof of payment through the operator).
Invoicing:
After the guest checks out (or after booking confirmation), the property invoices the tour operator for the STO rate amount.
Some hotels invoice weekly or monthly for all guests booked through an operator.
Payment Terms:
The operator pays the property based on agreed payment terms, like:
Prepayment (before guest arrival — common for small hotels)
Post-payment (after guest checks out — very common)
Credit terms (payment due 30, 45, or 60 days after checkout)
Receiving Payment:
Payment is usually made by bank transfer, sometimes through an OTA settlement system if online bookings are involved.
Some smaller operators may pay by credit card, but it’s less common in traditional STO agreements.
| Step | Action |
|---|---|
| 1 | Tour operator books 5 nights for a guest at an STO rate of $100/night |
| 2 | Guest stays and checks out |
| 3 | Property invoices tour operator: 5 nights × $100 = $500 |
| 4 | Tour operator pays property within 30 days |
Important Points for Properties:
They only ever receive the STO rate, not the full retail price.
They cannot charge the guest extra unless services are added on-site.
Risk: If the tour operator delays payment or defaults, the property may have to chase them for money.
Trust: This is why properties only offer STO rates to trusted and contracted partners.
A series booking in tourism refers to a pre-arranged block of multiple bookings (usually for groups) that take place on specific, repeated dates over a season—typically arranged by tour operators or travel agents.
🧳 Key Features of a Series Booking:
Feature | Description |
Fixed Dates | Bookings are made for the same service (e.g., hotel rooms, bus tours) on multiple, pre-set dates—like every Thursday from May to September. |
Group Size | Usually intended for groups of travelers, such as tour groups, school trips, or special-interest travel. |
Same Itinerary | Each booking follows the same itinerary, such as the same hotel, meals, activities, and routes. |
Volume Discount | Because of the commitment to multiple bookings, the buyer (operator/agent) typically receives special rates or discounted pricing. |
Advance Commitment | Often arranged months in advance, allowing suppliers (like hotels or transport providers) to allocate resources accordingly. |
✅ Benefits for Establishments:
✅ Benefits for Tour Operators:
Here’s an example of a series booking that works like a “standing reservation” for a group tour:
🚌 Example: European Heritage Tour Series Booking
✅ Tour Operator:
“Heritage Trails Travel Co.”
✅ Tour Package:
“Classic European Capitals” – A 10-day guided tour through Paris, Brussels, Amsterdam, and Berlin.
✅ Tour Schedule:
Runs every Saturday from May 3rd to September 27th – total of 22 departures over the season.
🗓 Series Booking Details:
Service | Details |
Hotels | Operator books 20 rooms each week in: |
Transport | Same coach company booked for each tour leg. |
Meals | Set menu arranged with select restaurants. |
Tour Guide | Same guide company assigned to all tours. |
📦 Why It’s a Series Booking:
This model benefits both sides:
