Two travelers and six hotel nights, as in the example the calculator opens with. Return flights at $640 each ($1,280), the hotel at $1,380 for the stay, airport transfers at $120, tours and tickets at $185 each ($370) and travel insurance at $58 each ($116). The trip costs the agency $3,266.
With a 15 % markup, the price is $3,266 × 1.15 = $3,755.90, or $1,877.95 per traveler. The agency keeps $489.90, which is a 13.04 % margin on the selling price.
If you want to keep 15 % of the selling price instead, divide by 0.85: $3,266 ÷ 0.85 = $3,842.35, or $1,921.18 per traveler, and the agency keeps $576.35. That’s a 17.65 % markup. On this one trip, mixing up markup and margin is a difference of $86.45.