Do Travel Agents Make Money? How Much Do Agents Make Per Booking

Do you want to know how much travel agents make per booking and how they earn through commission? Find out how much travel agents make per booking and all the different ways agents generate income.

Do Travel Agents Make Money? How Much Do Agents Make Per Booking

Generally, agents make 10-15 per cent per booking of a particular service. However, the rate at which the agent is paid depends mainly on the service cost and the contract made with the supplier.

How Do Travel Agents Earn Money

Agents make money mainly by commissions and fees of the percentages paid by suppliers. They also earn salary, incentives and other benefits from the host agencies they work with.

How Much Do Agents Make Per Booking,

Agents are paid commissions based on the percentage a supplier agrees with them. The main suppliers to agents are hotels, car rental companies, itineraries and tour firms. Also, leisure travel agents could get revenue from cruise firms. The percentage paid to the agent is generally a percentage of the cost of the service rendered.

An agent gets paid when his client uses a hotel, car rental company or itinerary he recommended and receives his percentage after the company has received payments for the services rendered.

Agents are also paid commissions from the sale of airline tickets but the commissions are paid according to the type of tickets purchased by the customer.

There are two major types of commissions for travel agents. They are the flat commission and the tiered commission. 

The Flat Commission

A flat commission is an amount which a supplier gives to agents for a particular service. This type of commission has already been negotiated between the host agency or freelance agent and the supplier before any transaction and is not determined by the total cost of service.

The Tiered Commission

This type of commission is dynamic and is common amongst group bookings. A tiered commission is paid to agents by tour companies and wholesalers. This type of commission allows the agent to receive payments according to the level of service purchased. For instance, an agent will receive more payment for more tickets sold, more rooms accommodated by his clients or more passengers on a cruise boat.

Travel agents also have an accredition number which their clients use when filling booking forms. These numbers are a code which the supplier uses to pay commissions to the right agent. The accreditation makes it easy for the agent to get his commission for a job done and also promotes transparency in the travel payment structure.


What Determines The Percentage Which An Agent Earn

Factors such as the type of service sold, the destination of a flight, the supplier, terms of agreement between the host agency and supplier, and how the booking was made determine the amount which a travel agent receives.  

Some travel agents give their agency a percentage of their commission and pay a special fee for office support and the agency in turn negotiates favourable percentage rates with the suppliers for them.

 What Other Ways Do Travel Agents Earn Money?

Agents can also earn money by planning itineraries for a particular client and increasing the number of suppliers which they will get commissions from. They can help the client plan fun activities such as cruises, restaurants, tours, accommodations and even events.

Are There Other Benefits for Travel Agents?

Yes, Travel Agents enjoy several benefits such as paid time off, dental insurance and health insurance.

The payment structure of an agent is very important in promoting the travel system structure and ensuring that the efforts of agents in making people have good travel experiences are rewarded.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *