Great question if you are looking into becoming a travel agent! In this article, I will break it down for you — both how travel agents get paid, as well as how MUCH they get paid, so you have a reasonable idea of kake you are in for, financially. When a travel agent makes a booking on behalf of his or can travel agents make money client, most suppliers will pay a commission to the agency. Supplier types that as a general practice pay commission include hotels and hotel chains, cruise lines, tour operators, car rental companies, travel insurance providers, airport transfer companies, shore excursion companies, tour guides and some European rail makw. The big supplier type missing from this list is airlines. Commission is almost always paid ttavel a percentage basis. The percentage amount depends upon the supplier and sometimes the individual negotiation between the travel agency agejts supplier. Commissions are usually paid to the travel agency, not the individual agent. But when the airlines eliminated commissions on all international and domestic air, thousands of travel agencies took a huge hit to their bottom lines, so severe that many went out of business. The introduction of online booking engines was a double-blow to travel agency owners.
Fees and commissions comprise the bulk of many travel agencies’ revenues. Travel agencies earn money from the clients they serve and the travel vendors they market. How that is proportioned depends on a number of factors: the types of travel they handle, the types of clients they serve and the level of expertise they can offer. The rise of Internet channels for booking — making obsolete the need for the average person to pick up the phone to book a basic flight, for example — has significantly changed the role of many agents and, in turn, their revenue streams. Travel agents often earn commissions from travel vendors they book for their clients, though this is a much smaller portion of their revenue than it once was. Airlines in particular have moved away from giving agents a commission on booking, since the Internet age has made it so easy for travelers to book their own flights. In rare cases, airlines provide commissions if they want to build traffic on a new route or an agent gives them a heavy volume of business. Tour operators, cruises and hotels still often pay travel agents commissions for bookings. With commissions off the table, many travel agencies earn the bulk of their revenue through fees. Models vary by agency. Some might charge you a flat fee per basic airline ticket and more for complex itineraries. Others might charge on an hourly basis, with the fee depending on how much research your itinerary requires.
Tours & Extras
As such, agents often must be able to prove their mettle to travelers to maintain their businesses. As a rule of thumb, an agent’s fees should balance out the cost of what it would have cost you to book on your own, either through lower costs, research or added value, such as room upgrades or free amenities. Some travel agencies specialize in specific types of travel, such as corporate travel or group travel, and earn money based on their expertise in that area. A corporate travel agency, for example, might provide a company software that allows its employees to book travel or manage their expenses. It might provide consulting services that assist companies in developing travel policies or negotiating discounts with airlines, hotels and other travel vendors.
A Shift in Business Models
Mention the phrase «travel agent» to many travelers, regardless of age, and they can’t imagine why they would ever use one. It’s easier and faster than ever to book a hotel, airline ticket or car rental online, and there are user reviews everywhere, so why would anyone need an agent? We found out when we looked at some of the myths about how they work. I can easily book the same trip on my own without using a travel agent. Sure, you can book a trip yourself, but it may not be the same trip that you’d get through a travel agent. If they book with a good agent, they’re known on arrival. Agents are especially useful on specialized trips, whether it’s a honeymoon, a cruise or an adventure travel vacation. Will someone be there to pick you up in the airport in Nairobi? I know people who’ve been stranded when they arrive. That’s one reason you need an agent. Much of Haraty’s time is spent working with honeymoon clients and helping them decide which resort is right for them.
Tours & Extras
A travel agent can be a great resource. But some may pressure you into booking less-than-stellar vacations or get you to spend more than necessary to up their take-home pay. We got the inside scoop on travel agents’ secrets and found ways to help you save on vacations, book more easily and enrich your trip experience. Read on so you can go into a travel agency with eyes wide open. This means they’re trying to influence your vacation decisions based on perks on offer at that particular time. That’s how they make money and compensate for their time. They may not be able to book or price all airline carriers. Have your heart set on a particular airline to earn frequent-flier miles or take advantage of their great amenities? Your travel agent may not be able to book seats on certain carriers without booking a whole vacation package, says Stone.
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Many companies, including some airlines, have stopped paying commissions to travel agents. A big commission is a great score but, today, agents are trying to build clients for life. Agencies can be small, independent operations or large, nationwide chains responsible for packaging trips to millions of Americans. In the case of hotel chains, the rate of commission is typically established for all agencies and travel companies who can then choose to sign on or not if the deal is sufficiently profitable for. Already answered Can travel agents make money a question Bad question Other. Tell us why! Co-Authored By:. Janeen Christoff is an award-winning travel journalist and editor of travel trade publications. This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. Ask about the kinds of hotels and activities they prefer and the experiences they enjoy. Method 2. Related Articles. Make your page a platform for them to tell their stories and rave about their vacations, which will get others interested. Look for the commissions.
Commissions
A generation ago, in the heyday of the travel agentfees and commissions were plentiful. There was no Internet, so planning a trip was definitely not just a click away. Travel agents could probably get away with charging you a fee and rake in commission as well booking your vacation. And, unlike today, airplane tickets were the big money.
But, in the s, airlines dropped commissions to travel agents as technological advances meant people could very easily book their own tickets and trips over the phone or the Internet and actual paper tickets became a thing of the past.
As Internet accessibility became agennts norm and travelers could shop, book and pay for travel themselves online, the life of the agent became a bit more difficult—to say the. The pendulum is swinging back in their favor as a new generation of travelers realizes that the travel agent still provides people with the same thing that they were looking for all those many years ago—value and convenience.
But without their enormous commissions, how do agents get paid? Can travel agents make any money? One of the biggest fears that travelers have—possibly you if you are reading this article—is that your travel agent is going to sell you something based solely on the fact that they will net a large commission.
A big commission is a great score but, today, agents are trying to build clients for life. They want to book you on your next trip, and your next trip after that and develop a lasting relationship with you. Most travel agents would agree that creating the ideal trip is of the utmost importance rather than creating a bad situation just for a large payout.
Another way that travel agents make money is to charge a fee for their services. This is similar to a consulting fee that you would pay just about anyone else who is providing you advice—but somehow, people often expect travel agents to dole out their knowledge for agemts.
This is beginning to change as travelers realize that, when they are booking something more than just a hotel and a plane ticket to a single destination, travel agents can provide some real value. They have connections at cah for better seating and upgrades, they know hotel managers who can provide better rooms for similar—yet still low—rates, they know destinations and can make sure you have appropriate transportation booked in advance, good seats at the theater and dinner reservations at the best local restaurants.
Ask your travel agent if they have a sliding scale or one based on a percentage of agets trip. Janeen Christoff. Janeen Christoff is an award-winning travel journalist and editor of travel trade publications. Tripsavvy’s Editorial Guidelines. Share Pin Email. Was this page helpful? Thanks for letting can travel agents make money know!
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Usually the people asking are either those who are interested in becoming a travel agent or it’s coming from those who find out I work in the travel industry and they can’t believe travel agencies are even still around! Um, they are, and they’re the new darlings of the time-starved, information-overloaded travelers of today! I’ll go more in-depth in just a second, but here’s the basic step-by-step of how most travel agents make money:. Now, if you’re looking for how travel agents make money that are employees ttavel an agency, that falls more into the territory of travel agent salaries. You’re at the right site, just the wrong article. To give you an answer on how travel agents make money, it’s important to know a little history.
A Short History
I promise to keep it short—it’s actually pretty fascinating how the industry has changed over the years.
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