Retail Markdown is a backend pricing feature that simplifies how booking agents manage commissions and supplier payments.
Previously, our system had to track two entirely separate sets of rates: the supplier's "floor rate" (the guaranteed amount due back to them) and the agent's external retail price. Retail Markdown replaces this complex process by utilizing a single source of truth for pricing.
With this feature, the system looks at the single marked-up retail rate and uses a standardized markdown calculation to instantly determine the correct payout due back to the supplier.
How it Works: The Single-Rate Workflow
Instead of managing conflicting rate tables, the system now calculates everything dynamically from the retail price:
[ Supplier Guaranteed Rate: $100 ] │
▼ (Agent applies markup, e.g., 20%)
[ System Retail Rate: $120 ] │
▼ (Retail Markdown automatically calculates backend payout)
[ Due to Supplier: $100 ] ──► [ Agent Commission: $20 ]
The Markup: The booking agent sets a retail price that builds their commission on top of the supplier’s guaranteed rate (e.g., marking a $100 guaranteed night up to a $120 retail price).
The Retail Markdown: When a booking occurs, the system looks only at that $120 retail rate and automatically applies the markdown logic to calculate the exact amount owed back to the supplier ($100).
The Result: The guest sees a clean retail price, the supplier gets their exact guaranteed rate, and the agents commission is perfectly preserved.
Why this is Better for Booking Agents
Eliminates Pricing Discrepancies: Because the system no longer cross-references two separate rate tables (floor rates vs. retail rates), the risk of human error or math mismatches during booking calculations is dropped to zero.
Cleaner System Performance: Managing one set of rates instead of two means faster data loading, smoother navigation, and simpler pricing audits.
Guaranteed Supplier Alignment: Suppliers can rest easy knowing that no matter what the final retail price looks like, the system's markdown math is hardcoded to ensure their guaranteed net rate is protected and paid out accurately.
How to configure Retail Markdown:
Navigate to Connections > Inventory Share > Get Listings from Suppliers
Select the supplier
Input the retail markdown amount in the column > Click the save icon above the grid
The Math: How the Retail Markdown Formula is Calculated
To ensure the system calculates the exact amount due back to the supplier, the Retail Markdown formula works backward from the final retail price.
If an agent applies a markup percentage to a supplier's rate, the system must apply a corresponding markdown percentage to the retail price to get back to that original supplier rate.
The Formulas
To determine the correct Retail Markdown percentage based on your target markup, use these standard financial formulas:
An Example in Action
Let’s use the standard 20% markup scenario on a $100 supplier rate:
Quick Reference Cheat Sheet
To save you from doing manual math, here are the most common agent markups and their exact corresponding retail markdown equivalents:
If your Agent Markup is... | ...Your Retail Markdown must be: | Effectively meaning: |
5% | 4.76% | System takes 4.76% off retail to pay supplier. |
10% | 9.09% | System takes 9.09% off retail to pay supplier. |
15% | 13.04% | System takes 13.04% off retail to pay supplier. |
20% | 16.67% | System takes 16.67% off retail to pay supplier. |
25% | 20.00% | System takes 20.00% off retail to pay supplier. |
💡 Why aren't the percentages the same? > A markup is calculated from a smaller number ($100), so the percentage is higher (20%). A markdown is calculated from a larger number ($120), so the percentage required to get back to the baseline is smaller (16.67%).