What Does Net Mean?

[presscamera]

This may appear stupid. But can someone clarify the meaning of the word "NET" in relation to pricing in Thailand. It seems to be used a lot in Thailand and I have never got my head around it. As the terminology is not used in my country.

For example I currently have a quote from a Bangkok Hotel, the Pathumwan Princess -It says that the total cost for 8 nights is Baht 33,428 NET.

I sent another email asking if that includes Tax and Service Charges, the reply came back saying thait it is "NET"

So does "NET" mean plus taxes or including taxes?

Can anyone help??

Thanks

[Owain]

This may appear stupid. But can someone clarify the meaning of the word "NET" in relation to pricing in Thailand. It seems to be used a lot in Thailand and I have never got my head around it. As the terminology is not used in my country.

For example I currently have a quote from a Bangkok Hotel, the Pathumwan Princess -It says that the total cost for 8 nights is Baht 33,428 NET.

I sent another email asking if that includes Tax and Service Charges, the reply came back saying thait it is "NET"

So does "NET" mean plus taxes or including taxes?

Can anyone help??

Thanks

net is after taxes. If you look at their website their room rates include all taxes.

Edited February 23, 2009 by Owain

[JoeThePoster]

"Net" usually means "all inclusive", but TIT and buyer discretion in asking for advance clarification is advised.

[chiangmaibruce]

From www.dictionary.com

net

–adjective 1.remaining after deductions, as for charges or expenses (opposed to gross ): net earnings. 2.sold at a stated price with all parts and charges included and with all deductions having been made.3.final; totally conclusive: After all that work, what was the net result? 4.(of weight) after deduction of tare, tret, or both.–noun 5.net income, profit, or the like.–verb (used with object) 6.to gain or produce as clear profit.

[saeanao]

Tare weight is the weight of a vehicle or container when it is empty. This weight is used in calculations of net weight for tasks which range from properly charging customers for consumer goods to taxing laden trucks as they cross borders. To calculate the net weight of a load, the container is weighed to establish the tare weight and then weighed again for the gross weight, and the tare is subtracted from the gross to find out how heavy the load is

gross - tare = net

[TJAN]

Tare weight is the weight of a vehicle or container when it is empty. This weight is used in calculations of net weight for tasks which range from properly charging customers for consumer goods to taxing laden trucks as they cross borders. To calculate the net weight of a load, the container is weighed to establish the tare weight and then weighed again for the gross weight, and the tare is subtracted from the gross to find out how heavy the load is

gross - tare = net

The Op was not talking about weight but about price.

[TJAN]

This may appear stupid. But can someone clarify the meaning of the word "NET" in relation to pricing in Thailand. It seems to be used a lot in Thailand and I have never got my head around it. As the terminology is not used in my country.

For example I currently have a quote from a Bangkok Hotel, the Pathumwan Princess -It says that the total cost for 8 nights is Baht 33,428 NET.

I sent another email asking if that includes Tax and Service Charges, the reply came back saying thait it is "NET"

So does "NET" mean plus taxes or including taxes?

Can anyone help??

Thanks

There are no stupid questions only stupid answers.

[tgeezer]

Thanks

The fact that the answer avoided the question should mean that it excludes taxes, and the reason that you asked of course. I think the word gross helps; always more than net. You could ask them what the gross price is, for example: how much does it cost?

Edited February 23, 2009 by tgeezer

[dumball]

I would take this to mean not inclusive of taxes etc , as in net earnings , what is posted on a web site is not always indicative of what you will actualy be charged 'On arrival' . I would be tempted to e-mail and ask what amount will I be expected to pay 'On arrival' .

I say this , because on a travel forum I subscribe to , posters have complained of a 20% surcharge on arrival for various reasons , what you need to know is the total charge for the room per night .

[thaihome]

Net is what you actually pay after a price is listed as "++"

TH

[MikeWill]

"Net price" definition:

Final price after deducting all discounts and rebates.

[spud1]

"Net price" definition:

Final price after deducting all discounts and rebates.

Well done Condo for the simple explanation,the net total is the sum after all expenses have been deducted.

[Heng]

It can also just mean "that I'm not going to bargain any lower."

[Maestro]

In the hotel and restaurant industry in Thailand, NET means Gross; it means that this is all you have to pay, nothing more.

Take the rate for a hotel room. I forgot how much VAT is in Thailand, but I believe it is 3.5% for hotel rooms. So if the room rate is THB 3,000, VAT is THB 105, the quoted price is THB 3,105 NET. Or the price may be THB 3,500 NET and when you get your bill it shows THB 3,378 room rate plus THB 123 VAT.

Some hotels add a 10% service charge to the room rate. In this case, NET presumably also includes this service charge. I remember room rates being quoted as NET NET, for example THB 4,000 NET NET, meaning that it includes service charge and VAT.

If a room rate is quoted excluding service charge and VAT, it will be quoted for example as THB 3,500++. I was looking for the copy of a Thai hotel bill on my computer but can't find it. I am not sure if the service charge is calculated on room rate plus VAT, or if VAT is calculated on room rate plus service charge. Anyway, if you see a room rate of THB 3,500++ it means THB 3,500 plus service charge plus VAT.

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Maestro