What Are STO Rates in Tourism?
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
- An STO rate is lower than the public (rack) rate.
- It’s given to tour operators who are buying in bulk or ahead of time.
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
- The tour operator adds a markup to the STO rate before selling it to travelers.
- That markup is their profit margin.
🔹 3. Contracted Rates
- STO rates are usually negotiated in advance, often in annual contracts.
- Tour operators may agree to certain conditions (like minimum bookings) in exchange for the lower rate.
💡 Why Do Hotels Offer STO Rates?
- To secure bulk bookings in advance.
- To fill rooms during low season.
- To reach international or distant markets via travel agents.
🧾 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.
