Gross profit is the amount left after deducting the cost of goods or services sold from revenue. It is an amount of money, rather than a percentage. Other business expenses still need to be considered before arriving at net profit. Source: Xero: Gross profit and net profit

Agree what belongs in the figures

Ask the accountant to confirm which income and direct costs belong in the travel business’s calculation. Label total booking value separately where needed. This gives colleagues a consistent basis for reviewing performance without assuming every pound collected is revenue.

Use an example with clear boundaries

Suppose recognised revenue is £10,000 and the associated cost of sales is £7,500. Gross profit is £2,500. This is a hypothetical illustration. Keep the period and cost definitions alongside the calculation so another person can reproduce it.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.