# Travel Agent Commission and Markup vs Margin Calculator

> Work out a travel agent’s commission, the supplier net and your share after a host agency split, and convert markup to margin to price net rates.

Work out what a booking earns you. Set a selling price from a net rate with a target margin or markup, or enter a commissionable price and commission rate to see your commission and the supplier net. Then see what you keep after a host agency or consortium split, with margin and markup side by side.

- Use the tool: https://globalluxagency.com/tools/travel-agent-commission-calculator
- For: Travel advisors & agencies, Hotels, Experience creators & DMCs
- Price: free, no sign-up; calculations run in the browser and nothing is stored
- Last updated: 2026-11-12
- Publisher: Luxury Travel Tools by Global Lux Agency (https://globalluxagency.com)

Estimate only. Results are indicative and based on the inputs you provide and any published sources listed on this page. Always confirm figures with your supplier.

## Frequently asked questions

### What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of cost. A £8,000 net rate sold at £10,000 earns £2,000: a 20% margin but a 25% markup. To turn a margin into a markup, divide it by (1 − margin); to turn a markup into a margin, divide it by (1 + markup). Margin is always the smaller of the two figures for the same profit.

### How do I price a net rate for a target margin?

Divide the net rate by (1 − margin). For a 20% margin on £8,000, that is £8,000 ÷ 0.80 = £10,000. Adding 20% to cost instead (£9,600) gives only a 16.7% margin, £400 short on this booking. The calculator shows both so a target agreed as a margin is not priced as a markup.

### Is commission a margin or a markup?

Commission is a margin: a percentage of the selling price. A 10% commission on a £10,000 booking is £1,000, and the supplier keeps £9,000. Expressed as a markup on the supplier’s net it is 11.1% (£1,000 ÷ £9,000), which matters if you compare commissionable products with net rates you mark up yourself.

### What commission do travel advisors usually earn?

It depends on the supplier and your contract, so use the rate in your agreement. One host agency puts traditional rates at about 10–15%, as low as 7% and as high as 28%. For tours and experiences sold through retail agents, industry guides give about 10–20%. There is no independent published survey of supplier commission rates, so treat these as rough guides.

### How do host agency commission splits work?

A hosted advisor sells under a host agency’s supplier agreements and accreditation, and the commission is split between them. Host agencies’ own published figures put the advisor’s share at about 70–90%: for example 70% on an entry-level split or 90% at some hosts, sometimes alongside a monthly or annual fee. Some hosts charge a fee and pass on 100%. Enter the split in your own host agreement.

### Does the calculator include VAT or taxes?

No. All figures are before tax. How VAT applies depends on whether you sell as an agent or as principal; in the UK, businesses selling travel packages as principal may fall under the Tour Operators’ Margin Scheme. Take advice on your own position.

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- [UK TOMS VAT Calculator](https://globalluxagency.com/tools/toms-vat-calculator): Estimate VAT on a package under the UK Tour Operators’ Margin Scheme: margin, UK and non-UK split, in-house supplies and VAT at one-sixth.

## Sources and default figures

- **Typical supplier commission paid to a travel advisor:** 10–15% of the commissionable price. Confidence: low; last verified 2026-11-12. Source: [Breaking it Down: What’s in A Travel Agent’s Salary? (sponsored story by Fora Travel)](https://hostagencyreviews.com/blog/fora-q4-2023) (Host Agency Reviews, 2024-06-14).
- **Share of commission a hosted travel advisor keeps:** 70–90% of commission kept by the advisor. Confidence: low; last verified 2026-11-12. Source: [Breaking it Down: What’s in A Travel Agent’s Salary? (sponsored story by Fora Travel)](https://hostagencyreviews.com/blog/fora-q4-2023) (Host Agency Reviews, 2024-06-14); [Why a 90% Commission Split Matters (sponsored story by PTN Travel)](https://hostagencyreviews.com/blog/ptn-q3-2025) (Host Agency Reviews, 2025-07-28).
- **Typical commission to a retail travel agent or advisor:** 10–20% of retail price. Confidence: medium; last verified 2026-11-12. Source: [The question of commission: how much should tour operators give tour agents?](https://rezdy.com/blog/question-commission-much-tour-operators-give-tour-agents/) (Rezdy); [How to Set Net Rates for Tours, Activities and Attractions](https://arival.travel/how-to-set-net-rates-for-tours/) (Arival, 2023-05-03).