Learn how to apply a markup percentage to listing prices and understand how markup affects channel pricing and displayed rates.
What is Markup?
A markup is a percentage that is added on top of your calendar rate.
Price Markup vs. Booking.com Rate Plan Markup
It's important to differentiate between the price markup that is explained in this article and the Booking.com Rate Plan Markup that is described in the article Booking.com: Rates or Availability Not Syncing.
See the examples of price markup below:
| Hostaway calendar rate: $100 | |
| Expedia markup: 5% | Price exported to Expedia: $105 |
| Booking.com markup: 2% | Price exported to Booking.com: $102 |
| Website markup: 1% | Price on Website: $101 |
- Markup can be negative
- Markup needs to be set up per listing
- Hostaway does not convert into another currency
Setting Markup Percentages
To set a markup, please follow the next steps:
- Go to Hostaway Dashboard > Listings
- Click on Price & Fees
- Enter markup percentage
- Save
Compensation Guidelines
When determining your markup percentage, use the reference table below, called Markup suggestions (click on it), as your starting point.
It's important to understand that channel commissions are deducted from the entire booking value, while your markup only applies to the base nightly rate (which represents just a portion of the total booking amount).
Therefore, your markup percentage needs to exceed the channel commission rate to ensure proper compensation for the commission loss across the full reservation value.
Disclaimer: The markup can be a decimal value only when the channel/OTA is Airbnb (for example, 5.26). For all other channels/OTAs, the markup must not be a decimal.
Markup suggestions (CLICK HERE TO VIEW THE SUGGESTIONS)
| Channel commission | Suggested markup |
|---|---|
| 5% | 5.26% |
| 6% | 6.38% |
| 7% | 7.53% |
| 8% | 8.30% |
| 9% | 9.89% |
| 10% | 11.11% |
| 11% | 12.36% |
| 12% | 13.64% |
| 13% | 14.94% |
| 14% | 16.28% |
| 15% | 17.65% |
| 16% | 19.05% |
| 17% | 20.48% |
| 18% | 21.95% |
| 19% | 23.46% |
| 20% | 25.00% |
| 21% | 26.58% |
| 22% | 28.21% |
| 23% | 29.87% |
| 24% | 31.58% |
| 25% | 33.33% |
| 26% | 35.14% |
| 27% | 36.99% |
| 28% | 38.89% |
| 29% | 40.85% |
| 30% | 42.86% |
What is Bulk Markup Update?
Bulk markup update allows you to apply the same markup percentage across multiple listings simultaneously, saving time when adjusting rates for commission fees across different booking channels.
Supported Channels for Bulk Update
You can bulk update markup percentages for Airbnb, Vrbo, Marriott, Booking.com, and the Booking Website.
How to Bulk Update
The following process is recommended for Airbnb, Vrbo, Marriott, and the Booking Website.
- Go to Hostaway > Listings > Price & Fees
- Enter markup percentage
- Save
- Near Price & Fees at the top, click the clipboard icon
- A new window will pop up with options to copy settings to other listings
- Choose and tick your target channels
- Click on Next
-
Select the listings you would like to export
- Choose whether to export to channels
- Save
Recommendations
- To apply a markup percentage to direct bookings made through the Hostaway booking Website, you will need to set the markup when creating the direct booking reservation manually. The markup percentage set for the Hostaway Booking Website will only apply to bookings made through the website, and not to direct bookings. When creating a direct booking in Hostaway, you can adjust the pricing, including any desired markup, at the time of booking creation.
- To set up a markup percentage for the Hopper channel on Hostaway, you will need to have Hopper set the markup on their side. For other channels, you can set the markup percentage directly on Hostaway. If you continue to have issues with the Hopper channel, you may need to contact Hopper support for assistance with their markup settings.