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Lets say a portion of money that you add, usually, in a package at Quellenhof to cover the fee. Example: a hotel room costs 200

Lets say a portion of money that you add, usually, in a package at Quellenhof to cover the fee. Example: a hotel room costs 200 and the flight 100. Total 300. However, the guest did not book it directly and hired us as the hotel to do so. So basically this "markup" another 30 for the job of us booking the room. The client at the end will pay 330, of which 30 is for us. 

Another example:

The revenue management at the resort uses markup to refer to the amount an online travel agency, increases the net room rate to set the sell rate.

The online travel agency has a model to work with Quellenhof based on the net rate. Quellenhof will provide the travel agency rate, and the travel agency will mark it up or in other words increase it to set a sell price

Qullenhof gives the agency a rate of 100 and the agency marks up 20, to sell at 120.in this case the markup is 20%.

formula of Markup is:

Markup = Selling Price - Net Room Rate (120-100=20)

Markup % = Markup / Net Room Rate (20/100= 0.2 = 20%)

1 per 1000 approach

Quellenhof invested 18.7 million in the hotel for130 rooms. Then we calculated what average rate we have to reach for one room (investment) --> 143.846,154. Average rate of the 1 per 1000 approach = 143.846.15/1000 = 143.85 per room


What are the Advantage and dis advantage of this pricing approach?











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