"STO" stands for "Standard Tour Operator".
When would I need to use an STO?
In the tourism industry, an STO rate sheet is a set of rates you've contracted with a travel agent or tour operator. It is your standard rate less the commission that you agreed with the agent/operator (wholesale rate).
How does an STO work?
If your standard rate is 1000, and your commission with the agent is 20%, you will give the agent a rate of 800.
The agent/operator, who is making a booking on behalf of the guest, will then add their commission onto the rates that they give to the guest. Using the example above, the guest will still end up paying 1000, the property will receive 800 wholesale rate and the agent will pocket the 200 difference.
How does the STO differ from the RACK rate sheet?
RACK is also a rate sheet, except that it will be your standard rates where you include the commission. Usually, properties include a 15% commission into their standard RACK rates, as this is the industry standard. Most channels charge around 15% commission.
From a NightsBridge perspective, an STO rate sheet can be more than your nett rates. An STO rate sheet (or RACK) can act as a platform, for certain rules you want to apply to certain partner sites. A lot of things in the setup can be setup for a specific rate sheet. E.g. currency, specific meal plans/room types, rates, and close outs. And since we link rate sheets to specific channels (web rates), we can control how things display on that channel with the use of an STO rate sheet.