Markups feat. Margins

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

Definition

The markup is what is added on top of the net price. The margin is 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 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)