How to set Tour Operator Markups?

Learn how to set tour operator markups in your TripBuilder system


1. Overview 

2. Tour Operator Base Markups 

a. Special Accommodation Markups 

b. Custom Markups 

c. Supplier Markups

3. Tour Operator Distribution Channel Markups

4. Tour Operator Agency Markups 


Overview 

Setting the correct price on a product or service is the key of 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 Distribution Channel Markups
    • Tour Operator Agency Markups

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

    1. Tour Operator base markup

    2. Tour Operator channel markup

    3. Tour Operator agency markup 

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

 Bildschirmfoto 2020-10-27 um 15.31.41

Please Notes: Additional distribution channel as well as agency management functionalities are available with an Advanced Product Plan or higher.

Tour Operator Base Markups 

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


Bildschirmfoto 2020-11-02 um 10.24.52

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 set for:

      • Country as well as country seasonality
      • City as well as city seasonality

The following hierarchy will be applied:

  • General Accommodation Markup
  • If a Country Markup is available, it will be applied
    → supersedes General Accommodation Markup
  • If  a Country Season Markup is available and the check-in date is within the defined season, it will be applied
    → supersedes General Accommodation Markup and Country Markup
  • If a City Markup is available, it will be applied
    → supersedes General Accommodation Markup, Country Markup and - if applicable - Country Season Markup
  • If City Season Markup available and the check-in date is within the defined season, it will be applied
    → supersedes General Accommodation Markup, Country Markup, Country Season Markup - if applicable - and City Markup
  • If a Custom Margin is be applied to a product, this Markup value is being applied for the product and will overrule any other insertion.

Custom Markups

Additionally for products managed in the Nezasa inventory system, it is possible to define so-called “Custom Markups” which then can be explicitly assigned to inventory products.

  • Custom markups can be set and assigned to single products that have a specific markup i.e. accommodation, transfers, activities, base services and rental cars
  • Wording of the custom margins can be adjusted as required.
  • Custom markups overwrite any other set markup and are added to the specific product via the Dropdown on the Miscellaneous tab of the inventory product 

Bildschirmfoto 2020-10-05 um 14.34.34

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 supplier an additional markup should be added for from the list 
  • Click on the arrow of the supplier 
    • Product categories are revealed in a drop down 
  • Click on the Edit pen behind the product category the supplier is offering 
  • Enter your required markup for the suppliers product 
  • Click Save

A default exists, if no Tour Operator base markup is defined for a particular external supplier, then the default Tour Operator base mark is used.

Tour Operator Distribution Channel Markups

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 Distribution Channel Markups 
  • Click on the red button Add Distribution Channel
    • 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 behind the product category
  • Enter your required markup for the product category
  • Click Save

Every TripBuilder setup is based on a default distribution channel.

If no further distribution channels are set up for your TripBuilder then only TO base markups are required. 

Tour Operator Agency Markups

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 TO agency markups: 

  • Go to Settings 
  • Click on Agency Markups
  • Click on the red button Add Agency 
    • Search and select the agency you want to set markups for 
  • Click on the arrow of the agency 
    • Product categories are revealed in a drop down 
  • Click on the Edit pen behind the product category
  • Enter your required markup for the product category
  • Click Save

If your TripBuilder is not enabled for agency management then only TO base markups are required.