How to Record Wholesale Room Revenue Billed to a Tour Operator at a Net Contract Rate
Recognizing room revenue at the pre-agreed net wholesale rate when billing a tour operator for allotment rooms.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| City Ledger: Tour Operator | Asset (+) | 60.00 | - |
| Room Revenue (Wholesale) | Revenue (+) | - | 60.00 |
💡 Accountant's Note
Wholesale rates are usually 'Net' of commission already. Unlike OTAs, these are recorded at the contract rate because the hotel never sees the 'retail' price the guest paid the operator.
Practitioner & Systems Framework
💻 ERP Architecture
Wholesale contracts (tour operators, bed banks, wholesale aggregators) are pre-negotiated net rate agreements where the hotel receives a fixed net rate per room night. The tour operator marks up to the retail price — the hotel never receives (or recognizes) the markup. Record at the net contracted rate. Bill the tour operator monthly based on the allotment rooms used per the rooming list. Maintain a wholesale allotment tracker showing committed allotment, actual pick-up, and release dates.
⚠️ Audit Flags
Auditors verify wholesale rates against the signed rate agreement and that the volumes claimed by the tour operator match the PMS check-in records. Non-performing allotments (committed rooms not picked up without release by the agreed date) may generate attrition revenue (see hospitality-group-attrition-fees). Ensure the City Ledger: Tour Operator balance is current and invoiced monthly.
📄 Required Documentation
Wholesale rate agreement (net rate, allotment size, release period, payment terms), rooming list submitted by tour operator, PMS check-in records confirming occupied nights, monthly invoice to tour operator, City Ledger aging per operator, attrition calculation for unreleased allotments, and payment receipt.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.