Markup is the margin a reseller adds on top of a hotel's net rate to form the final selling price. It is the counterpart of commission, where instead the hotel pays a percentage of a public price.
In the net rate model, the hotel does not control the markup, only the base price it hands over. Aggressive resellers sometimes apply minimal markup to win volume, which is how a net rate ends up publicly cheaper than the hotel's own rate.
Understanding whether a channel works on markup or commission clarifies who owns the price and who bears the parity risk. Mixing both models across many partners without documentation is a frequent root cause of unexplained disparities.
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