Understanding the concept of markups and margins is very important, and this article will briefly explain the difference.

Definition

The markup is the % added on top of the net price.

The margin is the gain / profitability based on the sales price.

For more details checkout the following article

Markup & Margins within TripBuilder

Settings & Pricing:

    • all configuration options are based on defining the markup

Customer Care:

    • in order to see how much profit a certain booking generates, the sales margin is shown in Customer Care for each booking

Mathematical Formulas

Calculating Net and Sales Prices

  • sales price = net price * (1 + markup)
  • net price = sales price * (1 - margin)

Converting Markup to Margin and Vice Versa

  • markup = 1 / (1 - margin)
  • margin = 1 - (1 / markup)

 

 

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