What Is a Markup? | TraveleXe Glossary

What is a markup?

Also called: travel markup · price markup

Definition

In travel, a markup is the amount a seller adds to a supplier’s net rate to reach the selling price — as a percentage or a fixed amount. Booking platforms apply markup rules automatically by supplier, destination, product, agent or channel, so each customer sees the right price.

Markup versus margin

Markup is calculated on cost; margin is calculated on the selling price. A 20% markup on a $100 net rate gives a $120 price and a margin of about 16.7%. Confusing the two is a common cause of underpricing.

Typical markup rules

Higher markup on destinations where you have a stronger position.
Lower markup for high-volume agents or corporate accounts.
Different markups for B2B and B2C channels.
Minimum margins per booking, regardless of percentage.

Example

A wholesaler adds 8% for gold-tier agents, 10% for standard agents and 18% on its B2C website — all from the same net rate.

How TraveleXe handles markup

OneBook manages markups, commissions and agent tiers across B2B and B2C channels.

Explore OneBook

Last reviewed 25 October 2026 by the TraveleXe product team.

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