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how do travel agents get paid 2015

how do travel agents get paid 2015插图

How do travel agents get paid?There are a few different ways that travel agents can get paid.The most common way is through commissions,which are paid by the tour operators,airlines,hotels,and other suppliers that the travel agent books with.Commissions can range from 10% to 20% of the total cost of the trip.More items

How much do travel agents usually make?

This agent is generally hosted by a host travel agency and may have a special niche or deal in a geographical location. There are tens of thousands of this type of travel agent and they usually generate between $100,000 and $500,000 in annual revenue.

What is the average Commission for a travel agent?

What little that is left over goes to the agency owner’s profit. An agent earning $36,990 would generate gross sales between $822,000 and $1,233,000 assuming an average commission on sales of 10%. This is completely consistent with industry standards for travel agency employee salaries.

Is "travel agent" really a good career?

7 Advantages of Being a Travel AgentWork Part-time. If your goal is to achieve a secondary source of income,then a travel agent profession can suit you well.Variety of Job Options. Being a travel agent offers numerous job opportunities to specialize in. …Decent Earning Potential. Possible income is a major consideration when choosing any career path. …No Need for Special Training. …

Do Airlines pay commission to travel agents?

The commission for international flights is built in to the fare (it’s the same for cruises, hotels) everyone pays it whether you book with a travel agent or not. The difference is this:if you book with a travel agent a small business person gets the commission whereas if you book directly with an airline via its website, the airline keeps

What is net based travel?

Kind of a cousin to commission, net based pricing is when a supplier gives the travel agent a “net price” for the itinerary and the travel agent has full discretion in how much is added to the net price. This puts the travel agent in full control of his or her revenue on a given booking. The other major benefit to net based pricing is that the travel agent receives his or her compensation when final payment is made and doesn’t have to wait until travel is completed.

Why are service fees so controversial?

The subject of service fees can often be controversial thanks to many “old school” travel agents feeling the heat of competition following the onslaught of online booking engines. Back in the early 1990’s travel agencies hardly ever charged service fees … because they didn’t have to. 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. Commission on air often made up 50-70% of an agency’s revenue.

How much does a travel agent charge?

Service fees can range drastically. Airline tickets often carry a service fee of $25-$50 per ticket. Full itinerary design can range from $75 – $500. Charging a service fee is more of an art than a science and some agents will charge per hour or per person.

How much money can a travel agent make in 3 years?

Especially if he or she focuses on finding a few good groups. 2 or 3 groups can easily net $30,000 – $90,000 in revenue alone. Add to that revenue generated by individual bookings in both commission and service fees, with good planning and budgeting, a committed and focused travel agent can find themselves making 6 figures per year.

How much commission does Disney pay?

For example, Disney Park vacations always pay 10% commission, no matter what agency is booking it or the amount of sales produced by the agency. It’s a standard commission that is not negotiated. However, Disney Cruise pays a range of commission from 10% to 16%, depending upon the sales volume generated by the individual travel agency.

Why do travel agencies charge for their services?

For one, because they had to find a way to supplement the reduction in revenue. But also because consumers are accustomed to paying for expertise. It’s an equal exchange of giving valuable information, delivering service and getting financially compensated for it.

How much of an agency’s revenue is commission on air?

Commission on air often made up 50-70% of an agency’s revenue.


People who continue to book their trips with a travel agent do so typically because they want convenience. A travel agent will save you the time of having to research the destination and all of the best itinerary possibilities.


Travel agents are also well connected in the travel industry and can often times give you more perks and upgrades for less money (or free). They often have developed relationships with various companies. From hotels, cruise lines, air lines and tour companies, they are well known because of referring business to them.

Niche Travel Needs

Booking through a travel agent is still very popular in niche markets. Such as, if you are wanting to book a Disneyland vacation of a lifetime, there are Disney travel agents ready to help. These specialized travel agents know the park, activities, and accommodations better than anyone.


A main way that travel agents get paid is through commissions. The airline, hotel, tour companies, car rental agencies, etc. will pay a percentage of the total booking to the agent. Or some do a flat rate commission. This is their way of incentivizing travel agents to refer more customers to book with their hotel or tour company.

Service Fees

Many travel agents charge clients a service fee, especially if they will only be creating an itinerary for the trip. If a travel agent is only making the overall plan of the trip and not booking a service fee is likely going to be charged. That is because they will not receive a commission from booking and need to be compensated for their time.

Why were travel agents called travel agents?

They were travel agents in every sense of the word because they were agents of travel vendors. Their revenue came from the commissions earned from selling travel products. However, when airline commissions were cut and capped in the 1990s — sad face! — the main revenue base for travel agents disappeared. It hurt. A lot.

Why do agents charge fees?

Charging a fee helps agents boost their bottom line and discourage ‘tire-kickers’ (price shoppers). For agents hesitant to charge fees, some agents implement a ‘look-to-book’ fee—an up-front fee for research, which is applied to the booking when its made.

What did travel agencies do after the commission cuts?

After the commission cuts, many travel agencies shifted to selling high-ticket products that still paid travel agent commissions —essentially, vacation packages and cruises. Nowadays, these are your leisure travel agencies—the ones you probably think of when you think of a travel agent.

Why is the travel agency business model changing?

Why the change? The easy answer is that commissions from airlines and other vendors are lower than in the past. They’re not gonna catch agencies off guard again!

How do corporate travel agencies make money?

Corporate travel agencies make money mainly from service fees, net/private fares, and from airline commissions.

How does a travel agency recognize a vendor?

The vendor recognizes the travel agency through their accreditation number. Using the accreditation number, the vendor pulls up information about the agency, including the travel agency’s commission level and the address where the commission check is to be sent.

How long does it take for a travel agent to get paid before a cruise?

For most cruises, the travel agent is paid their commission after final payment (typically about 60-90 days before the sailing). Now, if you’re looking for how travel agents make money that are employees of an agency, that falls more into the territory of travel agent salaries. You’re at the right site, just the wrong article.