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.
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
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:
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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
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
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
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
Note: If your TripBuilder is not enabled for agency management, only TO base markups will be required.
Markup Categories
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 |
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.