Overview 

Article Available in Video The information in this article is available in a series of 5 videos in this article to help you understand the logic behind setting your Markups.

 

00:00: Setting the correct price on a product or service is your key to profitability. In this initial guide we will talk about the types and organization of Markups in TripBuilder. 00:10: Markups for your products can be setup in the Settings in TripBuilder. From your main dashboard, access the Settings. 00:18: You will find the Markups under Pricing, in the General Settings. In TripBuilder you will find 3 levels of Markups, and one other option to create ruled markups. 00:28: From the 3 levels, you have the Base Markups, 00:32: Markups by channel. 00:34: And markups by Agency. 00:36: The sales price is calculated in stages from the supplier's net price. During each stage, a particular markup is added. 00:45: The markups are added in the following order on top of the Tour Operator net price 00:51: First, base markups are applied to the purchase price 00:55: The remaining, markups by channel, or by agency, are applied to the resulting price of the previous step. 01:02: In this handy chart, you can better understand how markups are applied in TripBuilder, and how they relate to the correct margin for the Tour Operator. 01:11: Here you have your net price, the value you buy your product for. 01:16: Now, the base markup is applied, where you define the percentage of your margin. 01:21: Then you can define channel and agency markups, that will represent the final sale price, and your gross margin, as a Tour Operator. 01:29: This guide explained how markups in Tripbuilder work. See our dedicated videos about Base, Channel, and Agency Markups to learn how to create them. 01:39: Thank you!

 

Setting the correct price on a product or service is the key to profitability. Within the Nezasa TripBuilder system, you are able to set markups on different levels to define the right selling price for your services. 

There are three levels of Tour Operator Markups, which can be defined within the setting part of your TripBuilder. 

• Tour Operator - Base Markups
• Tour Operator - Markups by Channel
• Tour Operator - Markups by Agency 

The sales price is calculated in stages from the supplier's net price. During each stage, a particular markup is added. The markups are added in the following order on top of the To net price: 

• Tour Operator - Base Markups
• Tour Operator - Markups by Channel
• Tour Operator - Markups by Agency 

In the first stage, the markup for that stage is calculated based on the supplier's net price. At every subsequent stage, the markup for that stage is calculated based on the resulting price from the previous stage.

Tour Operator - Base Markups

00:00: In this video, you will learn how to set up base markups in TripBuilder. 00:05: Base Markups can be found under "Pricing" in the General Settings. 00:09: All TripBuilder Instances are created with one "Default" markup, that cannot be deleted, only changed. 00:16: Click on the arrow to expand this Default markup, and edit it. 00:21: You will see all the Built in markup categories, for all inventory product types, as well as for modules. 00:28: You have the option to edit all the markups. 00:31: For all the options, except Flights and Accommodations, you can click on edit, and set up a new markup that will be applied to your net, purchase, price. 00:41: Click on the "Edit" button of one of them. 00:44: A new popup opens, where you can define a markup percentage to be applied to all your Activities, in this example, based on the net price. 00:53: For example, here we are defining that to all our Activities, 15% markup should be added to the net price introduced, when creating that activity. 01:03: When done, click on Save. 01:06: For Accommodations and Flights, you have a few more options when defining your base markup. 01:11: Let's start with Flights. Click on Edit. 01:15: On Flights, you can add your markup as a percentage, as in all other markups. 01:20: The difference here is that you can add an absolute value to be charged as a markup, per Booking 01:26: and per PAX. 01:28: This are not mandatory, and can be left as 0. 01:32: Now, let's see accommodations base markups. Click on edit, on accommodations. 01:39: Again, you can define a percentage markup, as in all other markups. 01:44: Similar to flights, you can also add additional markups, per Booking and per PAX. 01:50: The difference in Accommodations base markups, is that you can define Country markups, and inside those countries, different cities and seasons. Click on Add country. 02:00: Input the Country name. 02:02: You can now define a markup, and absolute values per PAX and per Booking, to Accommodations based in the Country you selected. 02:10: If a Country markup is created, this markup will override the General accommodation markup, if the accommodation is inside that country. 02:19: You can add as many countries as you need, to an Accommodation markup. 02:24: Inside each country, you also have the option to either add a city, or a date season, to that country. Click on the small plus icon next to the country. 02:35: Let's start by adding a season. Click on Add Season. 02:39: New fields show up, where you can define a start and end date to your season. 02:44: Again, you have the option to define a different markup percentage, and absolute value, to this season. 02:51: If a Booking Season markup exists, and the accommodation booked fits in the dates, then it will override any Country or General Accommodations markups. 03:00: You can add as many seasons as you need to a country. To do so, click on the plus icon. 03:06: Now, let's see City Markups. After clicking on the plus icon, select "Add City". 03:13: Start typing the City name, and TripBuilder will return matching results. 03:18: Now, you have the option to set a markup percentage, and also an absolute value per booking and per pax to accommodations that are inside that city. 03:27: If a city is set, and the accommodation matches that city, the General Accommodation Markup, the Country Markup and - if applicable - the Country Season Markup will be override. 03:39: Finally, you can also add a season, to a city. To do so, click on the small plus icon next to the city. 03:47: New fields will show up, for you to define the season start and end dates. 03:52: You can now define a percentage markup, and absolute value per PAX and per Booking, to accommodations that are inside this city, for Bookings within the date range you select. 04:03: As a final hierarchy, if an accommodation fits inside a city, within a defined city booking range, that will be the applied markup, overriding all of the above. 04:14: After saving, you will have an overview of the markups created, as well as the absolute values. 04:20: If you're using Marketplace, you can also create supplier specific Base Markups. Click on Add Supplier. 04:28: Select the supplier from the list. 04:31: To create base markups specific to a supplier, click on Add. 04:36: Open the supplier tab, by clicking on it. 04:39: You can now edit the Markups for the Inventory Products that this supplier offers. 04:44: If you don't add specific Markups to suppliers, your default Base Markup will be applied to both your inventory, and marketplace products. 04:53: This guide covered the process of setting up base markups in TripBuilder. To get a complete understanding, make sure you see our Distribution, and Agency Markup videos. 05:04: This guide covered the process of setting up base markups in TripBuilder. To get a complete understanding, make sure you see our Distribution, and Agency Markup videos, as well as our knowledge base article about the subject.

 

A default markup is automatically created for a new Tour Operator and cannot be deleted. This means a Tour Operator always has at least one set of markups. 

Steps to set TO Base Markups: 

• Go to Settings 
• Click on Base Markups

• Click on the arrow of the Default section 
  • Product categories are revealed in a drop-down 
• Click on the Edit pen behind a product category  

• Enter your required Markup per product category
• Click Save

TO base markups have some advanced options that other markup levels do not have e.g. special accommodation markups and custom markups. See more information below. 

Special Accommodation Markups

Accommodations can have additional markups for:

• Country and/or country seasonality
• City and/or city seasonality

The following hierarchy will be applied:

Supplier Markups

Additional markups can be defined per external supplier. 

Steps to set external supplier markups:  

• Go to Settings 
• Click on Base Markups
• Click on the red button Add Supplier
  • Select one of the external suppliers from the list and add it to your Base Markup settings
• Click on the arrow of the supplier
  
  • Product categories are revealed in a drop-down

• Click on the Edit pen next to the product category 
• Enter your required markup for the supplier product 
• Click Save

Please note: If no Tour Operator base markup is defined for a particular external supplier, then the default Tour Operator base mark will be applied.

Tour Operator - Markups by Channel

00:00: In the previous video, we saw how we can create base markups in TripBuilder. In this video, we will see how to set up markups by Distribution channel. 00:10: Markups by Channel option can be accessed under pricing, in the General Settings. 00:15: If your company only has one distribution channel, only the base markups will be required, and you don't need to set up Channel Markups. If this the case of your Instance, you can jump this video. 00:27: Channel markups can be defined per distribution channel, by the tour operator, and are calculated on top of the tour operator base markups. 00:36: Markups by channel can be useful to increase, or decrease a base markup, depending on the Distribution channel that the sale is happening. 00:45: Click on "Add Distribution Channel". 00:48: Choose the Distribution channel to which you want to add a markup, and click on "Add". 00:53: Click on the arrow to expand the menu of the markups. 00:57: As in base Markups, you can now edit all products markups, for this specific Distribution channel. 01:04: For accommodations and flights, besides setting up a percentage markup, you can also define an absolute value per booking and per pax. In the case of Accommodations, in Channel Markups, you cannot add Countries, Cities or Seasons. 01:20: For all remaining options, besides accommodation and flights, you can only define a percentage markup. 01:27: Let's go back to our handy Markups chart... By applying a channel markup, to any distribution channel, you're adding a percentage to the already existing base markup. 01:38: If, for example, I set a 22% markup for activities for one distribution channel 01:45: And my base markup is already 15% for activities, that means that Activities sold in that specific distribution channel will have a markup of 37%. But activities sold in other Distribution channel without Channel Markup will still be of 15%. 02:02: On Distribution Channel Markups, you can also use negative values. 02:07: In this same example, where our base Markup is 15%, and the Channel Markup is negative 5%, the activity sold in this Distribution channel will have a markup of 10%, instead of 15%. 02:21: This guide covered the process of setting up markups by channel in TripBuilder. Make sure you watch the last video about Agency Markups, with a practical example. 02:31: This guide covered the process of setting up markups by channel in TripBuilder. Make sure you watch the remaining videos about Markups, to get a full knowledge about the topic.

 

Tour operator channel markups can be defined per distribution channel by the tour operator and are calculated on top of the tour operator base markups.

Steps to set TO distribution channel markups 

• Go to Settings 
• Click on Markup by Channel
• Click on the Add Distribution Channel red button
  • Select the DC-Channel you want to set markups for 
• Click on the arrow of the DC-Channel
  
  • Product categories are revealed in a drop-down

• Click on the Edit pen next to the product category
• Enter your required markup for the product category
• Click Save

Important: Every TripBuilder setup is based on a default distribution channel. If no further distribution channels are set up for your TripBuilder, only TO base markups will be required.

Tour Operator - Markup by Agency

00:00: In the last videos, we saw how to set up base markups, and Channel markups, if your Instance has more than one Distribution channel. In this video, we will see how we can setup Markups by Agency. 00:13: Markups by Agency can be accessed under Pricing, in the General Settings. 00:18: Markups by Agency are defined per travel agency, and calculated on top of the tour operator distribution channel markups, or Base markups. 00:27: If your TripBuilder is not enabled for agency management, only Base and/or Channel Markups are required. 00:34: Click on the "Add Agency" option. 00:37: From the existing Agencies in your TripBuilder, select one to create markups by clicking on "Add". 00:43: Open the Agency Markups menu, to edit the markups. 00:47: The process is the same as in the channel Markups. For accommodations and flights 00:53: You can define a Markup percentage, and an absolute value per booking and per pax. 00:59: For all the remaining products, you can only apply a percentage markup, that can be applied on top of the base markup, and channel markup, if your company has more than one DC. 01:11: You can add Agency Markups to all agencies you have created in your TripBuilder. 01:16: Therefor, you can have different markups to different agencies, allowing you to practice different sale prices. 01:23: Let's see our handy Markups chart once again... 01:26: We are now creating the last markup possible. If you have agency management, you can create this agencies markups, to help you price your products correctly. 01:36: Both channel and agency markups are not mandatory, and might not make sense to your use cases together. 01:43: Now, let's see a full practical example. 01:46: We have a Base Markup of 15% to all our Activities. 01:50: And on one of our Distribution Channels, we have a markup of 3% to all activities. 01:56: This means that all activities booked in this Distribution Channel, have a markup of 18%. 02:02: We then defined an Agency markup to our Agency "WonderTours" for activities of 5%. 02:08: "WonderTours" uses the DC, so they are charged the net price, plus 23%. 02:14: This last video sums up how to use and create base markups, markups by channel and markups by agency. In the next one, we will review the Markups Categories.

 

Tour operator agency markups are defined per travel agency by the tour operator and calculated on top of the tour operator distribution channel markups. 

Steps to set Markup by Agency: 

• Go to Settings 
• Click on Agency Markups
• Click on the Add Agency red button
  • Search and select the agency you want to set markups for 
• Once an agency is added, click on the arrow of the selected agency 
  • Product categories are revealed in a drop-down

• Click on the Edit pen next to the product category
• Enter your required markup for the product category
• Click Save 

Please note: If your TripBuilder is not enabled for agency management, only TO base markups will be required.

 

Markup Categories

00:00: In the last videos, we saw how to set up base markups, channel markups and agency markups. In this video, you will learn how to set up Markup Categories within TripBuilder. 00:12: Markup Categories can be accessed under Pricing, in the General Settings. 00:17: With markup categories - Markups can be configured rule-based - Multiple rules can be combined with AND/OR logic - Condition rules for markups can be specifically selected products based on tags, component source, templates or modules, distribution channel, and agency. There is also a configuration that allows steering the markup value: per country, area or seasonality. 00:41: To add new categories click on the add category button. 00:45: A modal opens which allows you to define the - Name - Rank - Description and - Levels and - Level Types such as Base, Agency, Channel, (& Reselling) Once the level type has been selected and saved, the rules can be defined. 01:00: Here is an example of rank usage. What shall happen if multiple rules match? - Markup rule A defines a markup of 5% for accommodation products - Markup rule B defines a markup of 8% for all products with the tag special_product - Markup A has a rank of 1 and Markup rule B a rank of 5 An offer for a product P with the net price of EUR 100.00 is calculated where both rules A and B match. Rule B wins as it has a higher ranking of 5 and the sales price is calculated as EUR 100 * 1.08 = EUR 108.00. 01:37: Special Markups or Rule-based Markups can be applied to different types. Choose from the drop-down list. 01:44: In this example, Inventory Product has been chosen, which allows you to define a markup for a specific inventory product. 01:52: For Example, for an inventory accommodation product. 01:56: Select the accommodation for which you want to apply a specific markup for and click on Done. 02:01: You will now be able to add the default markup for this accommodation via the editing pen. 02:06: Add the markup value or cost per booking or pax. Click save. The markup rule defines how much should be added on top of the costs. This can be a markup percentage and/or an absolute amount. A combination of markup in % and absolute markup per booking or per PAX can also be combined. Once the rule(s) has been selected, the specific markup for the rule(s) can be defined as default or per country, area and seasonality. 02:35: Click "Save" again on the main screen to save the overall created markup category. 02:41: The created markup category will now be visible on the markup category overview list. Important to note: Custom markups will overwrite any other set default markup for the category. The sales price is calculated in stages from the supplier's net price. During each stage, a particular custom markup is added. The markups are added in the following order on top of the net price: TO Base TO Channel TO Agency If a custom markup was linked to a product and deleted, the default markup will be applied for that product again unless a new custom markup is defined. 03:17: This guide covered the process of setting up Markup Categories in TripBuilder. Thank you.

 

Updated with Release v271 Markup Categories replace the Custom Markup in settings. We introduce a new feature that allows more flexible and powerful control over markups.  With the Rule-Based Markups Category release, the Custom Markups are no longer visible in the Miscellaneous Tab of an inventory product. Custom markups were automatically migrated into new markup rules that apply the same functionality, but additionally also allow to steer markups more fine-grained.

The functionalities of Rule-Based Markup Categories are:

• Markups can be configured rule-based
• Multiple rules can be combined with AND/OR logic
• Condition rules for markups can be specifically selected products based on tags, component source, templates or modules, distribution channel, and agency.

Besides the different conditions to steer when a rule is applied, there is also a configuration that allows steering the markup value:

• Per country
• Per area
• Per seasonality

Add a Category

• Go to Settings 
• Click on Markup Categories 
• Click on Add Category

• A modal opens which allows you to define the
  • Name
  • Rank
  • Description and 
  • Levels (1, 2, 3) and 
  • Level Types 
    • Base, Agency, Channel, (& Reselling) 
• Once the level type has been selected the rules can be defined

Know more Example of Rank Usage  To illustrate it with an example what shall happen if multiple rules match. Markup rule A defines a markup of 5% for accommodation products Markup rule B defines a markup of 8% for all products with the tag special_product Markup A has a rank of 1 and Markup rule B a rank of 5 An offer for a product P with the net price of EUR 100.00 is calculated where both rules A and B match. Rule B wins as it has a higher ranking of 5 and the sales price is calculated as EUR 100 * 1.08 = EUR 108.00.

 

Rule

Rules define what markup will be applied to a... 

Distribution Channel	Select the Distribution Channel
Agency	Select Agency
Inventory Product	Add the product which you can select by searching products from the inventory
Product Type	Select product type
Template Tag	Select tag, which is defined on the template level
Module Tag	Select tag, which is defined on the module level
Template (ID)	Select template(s)
Module (ID)	Select module(s)
Component Source	Select component source(s) of the system that delivers components

 

Please note: Remark on "Component Source" Rule Type For connected supply, the user can now either apply a markup rule to all bedbanks or choose to apply a markup and make it specific to a certain bedbank or set of bedbanks. Setting different markups on different bedbanks ensures margin optimisation. Example: Instead of just having a 10% flat markup applied to all bedbanks accessible via TravelGateX, you can apply a 5% markup to ATI and a 15% markup to Hotelbeds.

 

Markups

The markup rule defines how much should be added on top of the costs. This can be a markup percentage and/or an absolute amount. A combination of markup in % and absolute markup per booking or per PAX can also be combined.  

Once the rule(s) has been selected, the specific markup for the rule(s) can be defined as default or per country, area and seasonality. 

• Click Save

Important Custom markups will overwrite any other set default markup for the category. The sales price is calculated in stages from the supplier's net price. During each stage, a particular custom markup is added. The markups are added in the following order on top of the net price:  TO Base TO Channel TO Agency If a custom markup was linked to a product and deleted, the default markup will be applied for that product again, unless a new custom markup is defined.

 

Markup Details in Customer Care

To have traceability of which markup rules determine the markup of a component, details can be looked up in Customer Care.

• Go to Customer Care
• Click on Markup Details

If a component has a markup which originates from a markup rule, this is indicated with a link to the corresponding rule.