Free tool
Travel markup and margin calculator
Enter your net cost and a markup or target margin. See the quote, your profit and your real margin, with GST.
Quote to customer
Markup is profit as a % of cost. Margin is profit as a % of the selling price. A 20% markup is only a 16.7% margin.
Guide
Pricing trips profitably
Markup vs margin
Markup is what you add on top of your cost. Margin is the share of the selling price you keep. On a ₹50,000 cost, a 20% markup gives a ₹60,000 price and ₹10,000 profit, which is a 16.7% margin. Mixing the two up is one of the most common pricing mistakes in travel.
Price the whole trip, then check the margin
Add up net rates for hotels, transfers, sightseeing and any flights, then apply your markup. Before sending, check the margin: if a trip has many low-margin components, the overall margin can be thinner than it looks.
Track the real profit after booking
Changes after booking, like an extra night or upgrade, quietly eat margin. TripClap CRM's profit per booking records payment in and payment out on every lead, so you see the real profit.
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FAQ
Common questions
What's the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 20% markup equals a 16.7% margin.
What markup do travel agents usually charge?
It varies widely by product, destination and competition. Use the calculator to test your own numbers and check the resulting margin.
Should GST be added before or after markup?
Markup is applied to your cost, and GST is then charged on the selling price.
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