Mark-up is how sellers earn on net-rate content such as bed bank hotels, consolidator fares and dynamic packages. In booking technology, mark-up rules apply it automatically by supplier, product, destination, date or sales channel.

Mark-up and margin

A package costing £1,000 net with a 15% mark-up sells for £1,150. The £150 profit is 15% of the cost but only about 13% of the selling price, which is the margin. Mixing up the two is an easy way to under-price.

Watch out for

• Mark-up is not commission. Commission is paid by the supplier on a price the supplier sets. A mark-up is set by the seller on a net price.

• Since 6 April 2025, under the Digital Markets, Competition and Consumers Act 2024, the headline price must include all mandatory charges, so a compulsory booking or service fee cannot be added later in the booking process.

• Selling a marked-up net price in your own name usually makes you a principal for VAT purposes. If you combine different types of travel service for the same trip, such as a flight and a hotel, you are also likely to be the organiser of a package.