Overview
Understanding the concept of markups and margins is very important, and this article briefly explains 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, check out the following article.
Markup & Margins within TripBuilder
Settings & Pricing:
All configuration options are based on defining the markup.
Customer Care:
To see how much profit a particular 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)