What changed: Tern is launching Hotels by Tern as an embedded hotel supplier and merchant of record. At launch, every eligible booking pays the agency of record a flat 10% commission. The first eligible hotel check-in date is November 16, 2026.
Why it matters: Tern says it will reconcile completed stays and pay the agency automatically on the Friday after checkout. That creates a defined weekly settlement cycle instead of requiring the agency to invoice or chase individual hotels.
Who is affected: U.S. agency credential holders that complete Hotels by Tern onboarding with a valid IATA or CLIA number, W-9, authorized signer and bank account. Once the credential is approved, advisors operating under it can book. Tern pays the credential-holding agency, not the individual advisor; the agency then applies its own advisor split.
Financial impact: The launch rate is 10% of every Hotels by Tern booking, paid in USD. Tern states that commission processing costs $0. A Canadian-dollar bank account incurs an FX fee, but Tern does not publish the amount. Because the public onboarding instructions require a W-9 and do not explicitly confirm Canadian agency eligibility, this entry is classified for the United States only.
Payment and booking terms
- The client pays Tern in full at booking; Tern is the merchant of record.
- Commission is held until the stay is completed and is paid to the agency on the following Friday.
- The bank account must be verified before commission can be released.
- Many rates are nonrefundable; cancellation terms must be checked before the client authorizes payment.
Channel limitations
At launch, Hotels by Tern bookings do not count toward consortium volume, do not earn preferred-hotel-program credit or amenities, and do not include agency overrides. Tern also has not yet enabled advisor-set commission rates. Agencies should continue using their established preferred channel when program credit, negotiated benefits or a higher commission rate is more valuable.
Important dates: The first bookable check-in date is November 16, 2026. Tern has not published a program end date or application deadline.
Advisor action: The agency credential holder should review the terms, opt in, submit the required IATA or CLIA, W-9, bank and signer information, and complete bank verification. Before quoting, compare the live client price, cancellation policy, 10% commission and loss of preferred-program benefits with the agency’s usual hotel channel.
Evidence
- Tern — commission and agency economics (accessed November 2, 2026; publication date unavailable).
- Tern — how Hotels by Tern works (accessed November 2, 2026; publication date unavailable).
- Tern — agency onboarding (accessed November 2, 2026; publication date unavailable).
- Travel Weekly — launch report (published October 22, 2026).