do travel agents earn commission

THE JOURNAL

Travel Advisor Resources

Travel Agent Commission: How Does it Work?

The Modern Travel Agency

Fora Travel

https://www.foratravel.com/the-journal/travel-agent-commission

Not sure how a travel agent commission works? Is it the only way travel agents and advisors earn income? Here, we break it down for you.

Want to start earning income for your passion? Apply to become a Fora Advisor and kick off the ultimate career in travel.

How do travel agent commissions work?

A supplier — hotels, rental car agencies and so on — pays a travel agent commission for making a reservation on behalf of a client (or group of clients; here’s why group bookings are great ). The amount is typically a percentage of whatever the service costs, and can vary widely depending on the type of booking. 

(Curious about how to become a travel agent in the first place? Our guide has all the intel you need.)

Who pays a travel agent commission?

Hotels are the most common suppliers travel agents work with. But there are also rental car agencies, airlines, tour operators and much more. 

Many businesses recognize the value in paying a facilitator to book their services for a client and treat travel agent commissions the same way they might advertising costs. You’ll sometimes even find that event venues, especially in places like Las Vegas, and businesses that are adjacent to travel also offer commissions to travel agents.

What’s a typical travel agent commission?

For hotels, five to 10 percent is about average. For other suppliers, it changes with the service and brand. Broadly, travel agent commission percentages run anywhere from one to twenty percent.

(P.S. Wondering how much travel agents make per booking ? Check out our guide.)

Do travel agents charge more on top of a commission?

Travel agent commission rates are typically set in stone. That being said, commissions are not the only way travel agents make money. Most remote travel agents offer custom itinerary building and other planning services as well. The exact amount varies by travel agent, but many Fora Advisors charge a fee per week of travel planned. 

Intrigued by the idea of building custom travel itineraries and getting paid for it? Apply to become a Fora Advisor .

( How much do travel agents make ? What’s the typical Fora travel advisor salary ? Our guides have help answer these questions.)

Do travel agents get paid for things like selling travel insurance, too? What else counts as commissionable revenue?

Absolutely. Selling travel insurance not only makes sense for the client (especially for more expensive trips), but it can also be a great way to boost your commissionable income.

As for other sources of travel agent commissions, our guide to all the types of bookings you can make as a Fora Advisor has more details.

Are there different types of travel agent commissions?

Technically, there are three different types of commissions travel agents encounter, although only two are common.

Standard commissions

Standard commissions are what we’ve covered thus far. They represent a small percentage, usually between five and 10 percent of the total sale (before tax, if applicable). 

With few exceptions, standard commissions are most favored by travel agents because they usually offer the most value, and come at no additional cost to the client.

Flat commission rates

Flat commission rates are set amounts that hotels and other suppliers pay travel agents for bookings. These rates are independent of the total cost the client is paying, so regardless of when the service is provided, the agent is earning the same amount. This essentially negates any potential boost to the commission if the client is staying during a popular period, when hotels usually raise prices.

There can be some nuance to flat rates, though. For example, a hotel may pay per hotel room so the agent at least earns more for a larger booking. 

These types of rates are most common in Europe, particularly among older hotels, and you won’t often encounter them with domestic travel.

Tiered commission rates

Tiered commission rates are fairly uncommon for travel agents to encounter; they’re much more popular among other careers in travel and tourism and are typically paid by wholesalers rather than individual suppliers. 

With tiered rates, t he commission rate changes with the number of tickets sold for a service, which might be a group tour, cruise or hotel block. 

On the flip side, travel agents at the top of their game may be more likely to encounter these types of commissions, usually in the context of large group bookings or corporate events (learn how to master the art of group bookings ). 

Usually this type of travel agent commission isn’t something new agents need to worry about.

Travel agent commission FAQs

Have more questions about travel agent commissions or adjacent topics? We have answers.

How else do travel agents make money?

As mentioned earlier, travel agents can also charge fees for planning itineraries. It’s also not unheard of for agents to charge extra fees for large group bookings since these require more time to orchestrate — which brings up an important point: the best travel agents don’t charge their clients arbitrary fees; there should be justification for the extra costs.

Between commissions and planning fees, you can see why travel agents are among the more lucrative jobs in the travel industry .

What percentage of a commission do travel agents usually get? Is Fora different?

Five to 10 percent is a normal travel agent commission. Fora Advisors do occasionally earn a higher commission for booking certain partner hotels because of our supplier relationships. 

Sound intriguing? Apply to become a Fora Advisor .

How much can you charge as a travel agent to use your services?

This varies by advisor and the exact service provided. People in some travel agent jobs or travel agent niches charge higher fees. For example, luxury travel advisors may have higher fees because they’re offering an elevated degree of service. Essentially, discerning clients pay more for the white-glove treatment. The same can also be said for corporate travel agents .

(Learn how to become a luxury travel agent .)

Does a vacation cost more if someone books through a travel agent?

One of the myths about booking through a travel agent is that they always upsell the price of the trip. In reality, advisors are paid by the hotel, so having an advisor book your accommodations comes at no extra cost to the client.

(BTW: check out the myths about becoming a travel advisor .)

Can you make a living off commissions as a travel agent? Do all travel agents rely on commissions?

You can certainly turn travel advising into a full-time career, as many of our advisors have.

(Looking for tips for how to be a successful travel advisor ? Read our guide.)

Do all host agencies take a percentage of a travel agent’s commission?

This is standard practice in the industry, and typically helps fund the host agency’s services. In Fora’s case, this percentage goes toward maintaining Fora profiles, our proprietary booking platform, supplier partnerships and so much more. Fora takes a 30% slice, then 20% once advisors have reached a certain bookings threshold (which is a far lower percentage than industry standard).

Our guide to how much it costs to become a travel agent has more details.

How does a commission pay schedule work at most host agencies? How does Fora handle this?

Travel agent commissions are typically paid by the supplier after the client uses their service (e.g., after they stay at the hotel or return a rental car). Across the industry, it’s unfortunately common for some hotels and other suppliers to drag their feet when it comes to paying out commissions (check out how travel agents get paid to learn more).

At Fora, we support our advisors and invoice hotels for you, allowing you to focus on the fun parts of the job. In other words, we worry about chasing commissions and getting you paid, so you don't have to.

(Curious about other reasons to become a Fora Advisor ? Hear it from our existing travel advisors.)

How is the commission rate usually determined for travel agents?

Travel agent commissions are usually set long before the agent ever enters the picture. This often comes down to a private agreement between a host agency (like Fora) and the supplier. 

In rare cases, usually involving independent or new hotels that don’t have an existing commission policy, a travel advisor may be able to negotiate a commission rate.

Are commissions calculated before or after taxes?

Travel agent commissions are calculated before taxes, as the latter is money the supplier doesn’t actually see.

Can suppliers’ commission rates change?

Certainly, though existing bookings typically aren’t affected, perhaps unless they’re part of a promotion. 

Do online travel agencies (OTAs) charge suppliers commissions?

Yes, like you wouldn’t believe. Whereas travel advisors charge hotels between five and 10 percent commission on average, online travel agencies like Expedia and Booking.com charge suppliers as much as 30 percent commission. 

It’s one of the reasons suppliers much prefer their bookings come from travel advisors — and why Fora Advisors can offer awesome perks at the coolest hotels around the world.

Ready to start earning travel agent commission? Become a Fora Advisor

Can’t wait to earn your first travel agent commission? Apply to become a Fora Advisor today and get your travel career rolling.

Alternatively, check out these travel advisor resources if you’re still testing the waters:

How Long Does It Take to Become a Travel Agent?  

How to Become a Travel Agent Online: Fora's Full Guide  

How Do Travel Agents Get Clients? Fora's Top 5 Tips  

How to Become a Disney Travel Agent  

Travel Agent Training Guide: What are Your Options?  

Book a Cruise With a Virgin Voyages Travel Agent  

Is Being a Travel Agent Worth It? Fora Discuses the Pros & Cons

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How Do Travel Agents Get Paid? (The Ultimate Guide)

How Do Travel Agents Get Paid?

When you book a trip through a travel agent, you might be wondering how they get paid. After all, you’re the one who’s paying for the flights, the hotel, and the other expenses. So where does the travel agent’s cut come from?

In this article, we’ll take a closer look at how travel agents get paid. We’ll discuss the different ways that they earn commissions, as well as the pros and cons of using a travel agent.

We’ll also provide some tips on how to find a good travel agent who can help you plan your next vacation.

Travel agents earn a commission on the sale of travel products, such as flights, hotels, and cruises. The commission rate is typically a percentage of the total cost of the trip. However, the exact commission rate can vary depending on the travel agent, the travel company, and the type of travel product.

Commissions

How much do travel agents earn in commissions?

The average commission rate for travel agents is around 10%. However, this can vary significantly depending on the travel agent, the travel company, and the type of travel product. For example, travel agents may earn a higher commission on flights than on hotels. And travel agents who work for large travel agencies may earn a higher commission than those who work for smaller agencies.

What factors affect the commission rate?

The following factors can affect the commission rate that a travel agent earns:

• The type of travel product: Travel agents typically earn a higher commission on flights than on hotels or other travel products.
• The travel company: Travel agents who work for large travel agencies may earn a higher commission than those who work for smaller agencies.
• The volume of business: Travel agents who generate more business for a travel company may earn a higher commission.
• The experience of the travel agent: Travel agents with more experience may earn a higher commission.

How do travel agents earn commissions on different types of travel products?

Travel agents earn commissions on different types of travel products in different ways. For example:

• Flights: Travel agents earn a commission on the sale of flights by charging a markup on the price of the ticket. The markup is typically a percentage of the total cost of the ticket.
• Hotels: Travel agents earn a commission on the sale of hotel rooms by charging a commission to the hotel. The commission is typically a percentage of the total cost of the hotel room.
• Cruises: Travel agents earn a commission on the sale of cruises by charging a commission to the cruise line. The commission is typically a percentage of the total cost of the cruise.

In addition to commissions, travel agents may also charge fees for their services. These fees can include:

• Booking fees: Travel agents may charge a booking fee for each trip they book. The booking fee is typically a flat fee, but it may also be a percentage of the total cost of the trip.
• Administrative fees: Travel agents may charge an administrative fee for processing the paperwork associated with a trip. The administrative fee is typically a flat fee, but it may also be a percentage of the total cost of the trip.
• Cancellation fees: Travel agents may charge a cancellation fee if a customer cancels a trip after it has been booked. The cancellation fee is typically a percentage of the total cost of the trip.

How much do travel agents typically charge in fees?

The average booking fee for travel agents is around $25. However, this can vary significantly depending on the travel agent, the travel company, and the type of trip. Travel agents may charge a higher booking fee for more complex trips or for trips that require a lot of work on the part of the travel agent.

How do travel agents justify their fees?

Travel agents argue that their fees are justified because they provide valuable services to their customers. These services include:

• Expert advice: Travel agents can provide expert advice on choosing the right travel products and planning a trip.
• Convenience: Travel agents can help customers book flights, hotels, and other travel products. They can also handle the paperwork associated with a trip.
• Peace of mind: Travel agents can help customers feel confident that their trip will go smoothly. They can also help customers resolve any problems that arise during their trip.

Travel agents earn a commission on the sale of travel products and may also charge fees for their services. The average commission rate is around 10%, but this can vary significantly depending on the travel agent, the travel company, and the type of travel product. Travel agents may charge a booking fee, an administrative fee, and a cancellation fee. The average booking fee is around $25, but this can vary significantly depending on the travel agent and the type of trip. Travel agents argue that their fees are justified because they provide valuable services to their customers.

3. Other Sources of Income

In addition to commissions, travel agents can earn money from a variety of other sources, including:

• Markups on travel products: Travel agents typically mark up the prices of the travel products they sell, such as airline tickets, hotel rooms, and rental cars. The markup is typically a percentage of the total cost of the product.
• Service fees: Travel agents may charge a service fee for their services, such as booking flights, hotels, and rental cars. The service fee is typically a flat fee or a percentage of the total cost of the travel arrangements.
• Commissions from other sources: Travel agents may also earn commissions from other sources, such as credit card companies, car rental companies, and hotel chains. These commissions are typically paid to the travel agent when a customer uses their credit card to book a travel product or when a customer makes a reservation through a hotel chain or car rental company.

Pros and cons of working with a travel agent who earns money from multiple sources:

There are both pros and cons to working with a travel agent who earns money from multiple sources.

• Travel agents who earn money from multiple sources may be more motivated to provide you with the best possible service. They may be more likely to go the extra mile to find you the best deals on travel products and services, because they know that they will earn a commission from those sales.
• Travel agents who earn money from multiple sources may have access to a wider range of travel products and services. They may be able to offer you a wider variety of options, and they may be able to find you better deals than you could find on your own.
• Travel agents who earn money from multiple sources may be more likely to push you towards products and services that earn them the highest commissions. This may not always be in your best interest.
• Travel agents who earn money from multiple sources may be less transparent about their fees. They may not always disclose all of the fees that you will be charged, and they may not be as upfront about the markups that they are adding to the prices of the travel products they sell.

Ultimately, the decision of whether or not to work with a travel agent who earns money from multiple sources is a personal one. You should weigh the pros and cons carefully to determine what is best for you.

4. Tips for Choosing a Travel Agent

When choosing a travel agent, there are a few things you should keep in mind:

• Do your research. Ask friends and family for recommendations, and read online reviews of different travel agents. You should also make sure that the travel agent is accredited by a reputable organization, such as the American Society of Travel Agents (ASTA).
• Be clear about your needs. What type of travel are you interested in? What is your budget? How much help do you need with planning your trip? Once you know what you need, you can start narrowing down your list of potential travel agents.
• Interview potential travel agents. Once you have a few potential travel agents in mind, set up an interview with each one. Ask them about their experience, their knowledge of the destinations you are interested in, and their fees. You should also get a sense of their personality and how well you would work with them.
• Get a written quote. Before you hire a travel agent, get a written quote for their services. This will help you to compare prices and make sure that you are getting the best possible deal.

Here are a few additional tips for choosing a travel agent:

• Don’t be afraid to negotiate. Travel agents are typically willing to negotiate their fees, so don’t be afraid to ask for a lower price.
• Make sure you understand the terms of your agreement. Before you sign any contracts, make sure you understand the terms of your agreement. This includes the fees that you will be charged, the cancellation policy, and the refund policy.
• Be prepared to provide information about your trip. The more information you can provide your travel agent, the better they will be able to help you plan your trip. This includes your budget, your interests, and your travel dates.

By following these tips, you can increase your chances of finding a travel agent who is right for you and who can help you plan a memorable and enjoyable trip.

Travel agents can be a valuable resource for planning your next trip. They can help you find the best deals on flights, hotels, and other travel products, and they can also provide you with expert advice on planning your itinerary. When choosing a travel agent, it is important to do your research and find someone who is accredited by a reputable organization and who

How do travel agents get paid?

Travel agents typically earn a commission on the sales they generate. This commission is typically a percentage of the total cost of the trip, and it can range from 5% to 20%. The exact commission rate will vary depending on the travel agent, the type of trip, and the airline or hotel.

How much do travel agents make?

The average salary for a travel agent is around \$50,000 per year. However, the salary range can vary significantly, from \$25,000 to \$100,000 or more. The factors that affect a travel agent’s salary include their experience, location, and the size of the agency they work for.

What are the benefits of using a travel agent?

There are many benefits to using a travel agent, including:

• Expert advice: Travel agents can provide expert advice on everything from choosing the right destination to booking the best flights and hotels. They can also help you find the best deals and save money on your trip.
• Convenience: Travel agents can take care of all the details of your trip, from booking flights and hotels to arranging transportation and activities. This can save you time and stress.
• Peace of mind: Using a travel agent can give you peace of mind knowing that you are in good hands. Travel agents are experienced professionals who are well-versed in the travel industry. They can help you avoid any potential problems and ensure that your trip goes smoothly.

What are the drawbacks of using a travel agent?

There are a few drawbacks to using a travel agent, including:

• Cost: Travel agents typically charge a commission on the sales they generate. This can add to the cost of your trip.
• Inflexibility: Travel agents may not be able to accommodate all of your specific requests. For example, they may not be able to find the exact flights or hotels that you want.
• Lack of transparency: Some travel agents may not be transparent about their fees. It is important to make sure you understand exactly how much you will be charged before you book your trip.

How do I find a good travel agent?

There are a few things you can do to find a good travel agent, including:

• Ask for recommendations: Ask friends, family, or colleagues for recommendations for travel agents they have used and liked.
• Do your research: Read online reviews of travel agents to get an idea of their reputation and customer service.
• Interview potential agents: Once you have a few potential agents in mind, interview them to see if they are a good fit for you. Ask them about their experience, their fees, and their availability.

What questions should I ask a travel agent before booking a trip?

When you are interviewing potential travel agents, there are a few questions you should ask to make sure you are getting the best possible service:

• How long have you been in business?
• What is your experience with the type of trip I am planning?
• What are your fees?
• How do you communicate with clients?
• What is your cancellation policy?

By asking these questions, you can get a better understanding of the travel agent’s experience, expertise, and fees. You can also make sure that you are comfortable with their communication style and cancellation policy.

How can I avoid being scammed by a travel agent?

There are a few things you can do to avoid being scammed by a travel agent, including:

• Only use reputable travel agents: Do your research to find a travel agent who is accredited by a reputable organization, such as the American Society of Travel Agents (ASTA).
• Get everything in writing: Make sure you get all of the details of your trip in writing, including the price, the terms and conditions, and the cancellation policy.
• Pay with a credit card: If possible, pay for your trip with a credit card. This will give you more protection in case there is a problem with your trip.
• Beware of unrealistic deals: If a travel agent is offering you an unrealistic deal, it is probably a scam. Be wary of deals that are too good to be true.

By following these tips, you can help protect yourself from being scammed by a travel agent.

In this blog post, we have discussed how travel agents get paid. We have learned that travel agents earn a commission on the sales they make, and that this commission can vary depending on the type of travel product sold. We have also learned that travel agents can earn additional income through ancillary sales, such as hotel stays and car rentals. Finally, we have discussed the importance of travel agents in the travel industry, and how they can help consumers find the best deals on travel products.

Here are some key takeaways from this blog post:

• Travel agents earn a commission on the sales they make.
• The commission can vary depending on the type of travel product sold.
• Travel agents can earn additional income through ancillary sales.
• Travel agents are an important part of the travel industry.
• They can help consumers find the best deals on travel products.

If you are thinking about planning a trip, it is worth considering using a travel agent. A travel agent can help you find the best deals on flights, hotels, and other travel products. They can also help you plan your trip and make sure that you have a smooth and enjoyable experience.

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Complete Guide to Travel Agent Commissions

by Core Commissions | Feb 16, 2023

According to research by Statista , as recently as 2022, the travel industry was reported to be worth as much as two trillion dollars. It is one of the largest industries in the world based on employment, with an average growth of 12% over the past five years specifically among travel agents. 

Travel agents earnings are made up of a mix of salary, commission, and other incentives. Their pay can fluctuate significantly month to month or even annually. Different destinations, seasons, suppliers, affiliates, or even how the booking is made, all factor into the percentage of commission that an agent takes home. All of these variables make the process for calculating and managing commissions for agents ever-changing and very complicated.

Similar to other commission-based industries such as insurance and finance , an agent’s pay will vary depending on whether they are employed by an agency or if they are self-employed. Typically, agents employed by an agency have a salary and receive commissions and incentive pay as an additional source of income. Whereas, a self-employed agent is not paid a salary and is only paid commissions earned from suppliers and fees paid by customers.

Core Commissions is a leader in sales compensation software. Founded in 2005, Core Commissions provides an affordable web-based commission management solution that automates the calculation of complex sales commission and incentive pay plans. Core’s powerful and robust application is capable of managing complex data relationships and commission rule scenarios while providing an intuitive online portal for salespeople to view their pay statements and performance dashboards.

In this guide, we’ll cover vocabulary, types of commissions, commissionable revenue, and commission payment schedules that are common for US-based travel agents. 

Travel Agent Vocabulary

Supplier: The vendor or business that provides travel services. Suppliers could be airlines, hotels, rental car companies, tour guides, cruise lines, etc.  

Host Agency: Many independent agents may prefer to work under the umbrella of a larger organization to earn higher commissions and benefit from better contracts, relations, and marketing assets. These organizations are referred to as host agencies.

Accreditation Number: The identification number that suppliers use to keep track of sales made by each agency is known as the accreditation number. Suppliers group all bookings made under the same accreditation number together, meaning that host agencies, or agencies with multiple reps, can more easily generate enough sales to place them into higher commission tiers.

Non-Commissionable Fees (NCF): There are some aspects to the cost of travel that are not commissionable, meaning agents cannot accrue any commissions from them. Non-commissionable fees typically include any services fees and taxes added on to a booking, though there are some cases where both fees and taxes can be fair game for commissions.

Types of Commissions for Travel Agents

There are three main commission types for travel agents: flat commission rates, tiered commission rates, and airline commissions.

Flat commission rates

With flat rate commissions, every travel agent gets the same commission rate no matter how much they book. Flat commission rates are standard and predictable.

Tiered Commission Rates

For larger suppliers, they may utilize a commission tier structure as a way to incentivize agents to book more with them. Suppliers may base their tiers off of two variables: annual sales revenue or passenger count. In either case, the supplier establishes a commission structure that rewards agents or agencies who meet certain thresholds. Once an agent reaches a threshold, they receive a higher commission rate.

How many levels each supplier includes in their tier structure can vary, but generally they have three to four tiers for agents to reach. As mentioned above, suppliers keep track of all bookings made by agents through use of an accreditation number.

Annual Sales Revenue: In most cases, suppliers opt to build their commission tiers around overall sales volume achieved by an agent or agency. Once a certain threshold for annual sales is met, an agent’s commission rate increases.

Passenger Count: Alternatively, some vendors may choose to use passenger count as a way of structuring their commission. This can be a common route for suppliers such as cruise lines as they have several vacancies to fill on each cruise.

Either way, agencies have an advantage with tiered commissions because they have multiple agents working under the same accreditation number, all of whom will benefit from the commission rate increase. Because of this, they are able to reach the tiers with higher commission rates quicker and easier.

Airline Commissions

Airline commissions are unique from flat rate commissions and tiered commissions because they vary completely based on the contract that is negotiated with each agency. Agencies with better contracts earn a higher percentage rate. Even with a well-negotiated contract, an agent’s compensation will be impacted by domestic vs. international flights, city pairings (where they are flying to and from), class of service, the carrier, and the time of year.

Not all airlines pay commissions to travel agents, but airlines that do will have their own policies and commission rates. For specific commission rates, you will need to inquire with each individual airline. 

Commissionable Revenue

Almost any travel services booked by a travel agent can be eligible for commissions or other incentives, some examples include:

• Car Rentals
• Travel Insurance
• Service Fees
• Custom itineraries

Other Variables

Aside from the variables mentioned above, there are additional factors that contribute to how an agent gets compensated.

Commission Confidentiality: Many suppliers choose to keep their commission rates private. You will only learn the commission rate when you sign on with a host.

Net Commission vs Gross Commission: As mentioned above, for some aspects of travel, there are non-commissionable fees. This can play a role in whether the commission accrued for each agent is based on the gross cost of the booking or the net, which is gross less any taxes.

Phone vs. Online Bookings: In some cases, suppliers may base their commission percentages on how the booking is made. This won’t have a huge impact on the rate of commission paid out, but it can alter the rate a little bit.

Price Matches: Many suppliers will offer price matching for customers, which can result in a lower commission rate for agents.

Travel Type: Leisure and business involve different methods for planning and agents will earn different rates depending on the type of travel being arranged.

Commission Pay Schedule

Another complicating factor to travel agent commissions is the schedule in which they receive their incentive pay. Here are the two most common ways agents are compensated:

Payment upon booking: Agents will receive payments upfront when the client buys travel insurance, if the agency requires any type of deposit prior to planning, or when they submit their final bill to the customer. The fees incurred from completing bookings for the customer are received as incentive payments for the agent.

Payment after client has traveled: Suppliers will not usually issue payment to agents until the client has concluded their travel, which means that in most cases agents will go long periods before seeing their commission hit their paycheck.

Ensure Accurate Payments to Your Agents

There are a lot of moving pieces involved in managing sales compensation for travel agents and ensuring that the commissions received from suppliers are accurate with your records. Core’s customizable sales compensation solution has all of the tools you need to reconcile payments from suppliers, track commissions tiers, and accurately calculate your agents’ pay.

Single-button processing allows you to process commission cycles at any point once payment is received from your suppliers and our customized dashboards give you a real-time view into which suppliers are your biggest revenue generators.

Contact us or set up a free demo and we’ll show you how Core can automate the entire compensation process for your agency.

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How Do Travel Agents Make Money? [The Travel Agent Business Model]

In the past, travel agents made money from commissions from airlines and hotels. And while this is still a key revenue source for travel agents, the increasing prevalence of online booking has made them look for new sources to diversify their income. So, how do travel agents make money today?

Below, we explain the different ways in which independent professionals and online agencies generate revenue in the ever-changing travel industry. By understanding the rewards that come with taking on the role of a travel agent, you will gain insight into this often-overlooked career path and how it could fit into your own life goals.

How Do Travel Agents Work?

Travel agents work to provide their clients with a stress-free and personalized travel experience by taking care of all the details and providing expert advice and support. Travel agents can work independently or for travel agencies. 

The key role of a travel agent is to assess their client’s needs and make the necessary recommendations and arrangements based on them. Services provided by travel agents include:

• Consultation – Determining the client’s travel needs, budget, and preferences. This includes asking questions about the purpose of the trip, the desired destination, preferred travel dates, accommodation preferences, and any specific requests or requirements.
• Research – Identifying the best travel options available for the client (flights, hotels, rental cars, tours, and activities).
• Booking – Making travel arrangements on behalf of the client.
• Confirmation – Verification of all details related to the booking, including providing the client with the necessary information, such as flight times, hotel reservations, and tour details.
• Follow-up – A travel agent may provide advice on travel visas, travel insurance, packing tips, and other travel-related issues.

How Do Travel Agents Get Paid?

The most common way a travel agent gets paid is from commissions from airlines, cruise lines, or tour companies for packages sold. The commission rate varies depending on the type of travel and the agreements with travel providers. 

Additionally, travel agents get paid a fee by their clients for their services. The amount of the service fee is entirely up to the agent and is related to the type of services provided. Typically, it’s charged for arranging some or all segments of the travel.

If the travel agent is employed by an agency, then just like any other employee, they’ll receive a salary or hourly wages.  

Net price overages are also an option for many agencies. So, for instance, if an agent books a certain number of hotel rooms, the vendor gives them a discount which is then marked up, and the difference is kept by the agency. 

Some travel agents may also earn additional revenue by offering travel insurance or upgrades to accommodations or transportation.

Travel Agent Business Model

The simplest way to describe the business model of travel agents is to go by the main source of income. Based on this, there are two types of business models:

• Commission-Based 

The commission-based business model allows travel agents to earn a percentage of the total cost of a travel package, such as flights, accommodations, and activities. Depending on whether the package is domestic or international, travel agent commissions may be as low as 5% or as high as 20% or more. 

• Service-Fee-Based

In a service-fee-based business model, travel agents charge their clients a service fee for their expertise or assistance in planning a trip. If the travel agent is in the role of an advisor, they may recommend a popular destination or deal on a specific trip. 

Alternatively, they may provide help for any given element of the trip, from booking a hotel room or flight to booking a spa treatment. The fee charged can be a flat rate or a percentage of the total trip cost. 

It’s important to note that with the rise of online booking platforms, the travel industry has become more competitive, and many travel agents use a combination of commission and service fees, plus access to exclusive deals and pricing. This way, they’re able to offer their clients a unique and personalized experience while staying competitive in the market. 

How Travel Agents Make Money

Here are the most common ways travel agents make money.

1. Travel Insurance Sales

Travel insurance is essential to ensure your trip is protected in case of any unexpected changes or emergencies. Travel agents can sell insurance policies for their clients, which provide coverage for things like flight cancellations, lost luggage, and medical expenses. Depending on the policy sold, agents can earn up to 40% in commission.

2. Cruise Sales

Travel agents may receive a high commission or bonus on cruises based on the number of rooms booked by their clients. Typically, the commission rate for cruises is around 12%. This is because a large number of passengers are required to fill a ship.

Note that a significant portion of clients’ bills is taxes. For instance, a booking for cruise berths priced at $4,000 might include taxes amounting to $1,500. When booking cruises, agents earn commissions only on the portion of the cost that is not taxed.

3. Car Rental

Depending on the car rental agency, agents may earn between 8% to 10% commission on bookings. Other travel agents charge a flat fee of $20–$40 for making the reservation with the car rental company. 

The car rental industry is highly competitive, so the key here is for travel agents to establish relationships with different companies and shop around for the best rates for their clients.

From visiting vineyards in Tuscany to exploring the rainforest in Costa Rica, tours are an excellent way for clients to get the most out of their travels. Agents can earn commissions ranging between 10% and 20% when they book a tour package and may also receive incentives such as free rooms or discounts on future trips.

5. Premium Listings

Car companies, airlines, and cruise lines pay handsomely for premium listings on travel agents’ sites. This gives the company more visibility and may help them generate more revenue. Typically, agents negotiate a commission for booking trips with these companies or charge a flat fee for providing access to the website.

6. Vacation Packages and Deals

If a travel agent is employed, they can use the buying power of their agency to get discounts and special offers which they can then pass on to their clients in the form of reduced hotel rates, exclusive deals, and other incentives. Usually, the commission rates for booking vacation packages range between 10% and 15%.

7. Niche Travel

Focusing on a niche area can be highly profitable for travel agents because it allows them to refine their expertise and cater to clients seeking a specific type of trip, like wedding and honeymoon or sports travel.

Some agents have two distinct branches of their business. The first covers travel to various destinations worldwide, while the second specializes in a particular theme like yachting, wine, or culinary adventures. For instance, an agent could sell packages for resorts and cruises while also organizing unique wine or food-related trips.

8. Mode of Travel

Vacationers have options beyond just using traditional modes of transportation like planes, trains, and cars. For instance, they can choose to explore an area by cycling from one spot to another. It’s the agent’s responsibility to arrange the logistics of the trip, from transportation to the actual adventure.

9. Corporate Travel

Many travel agents make their money by organizing custom trips for corporations. From organizing team building, corporate retreats, or special rewards trips, corporate travel is an excellent source of revenue and provides the opportunity for the agent to make long-term relationships with companies.

Travel agents may be paid an hourly fee for their services and/or a commission on airline tickets, cruises, and hotels and resorts. They could also receive incentives to book certain properties or activities, such as golf courses or spa treatments. 

How Much Do Travel Agents Make Per Booking?

A travel agent’s commission may be as low as 5% or as high as 30% and depends on various factors such as the type of booking, the element of travel, and the vendor they book with. In addition to commissions, travel agents’ income can come from other sources, such as service fees. 

For example, if a travel agent earns a commission of 10% on a $2,000 booking, they would make $200. However, if the booking is a complex itinerary, such as a multi-country trip, and the travel agent charges a service fee of $200, their total income from that booking would be $400.

Do Travel Agents Get Paid Hourly?

Yes, travel agents can be paid by the hour, and it’s a more common type of compensation for travel agents who work for larger agencies. The average hourly pay of travel agents in the US currently stands at $17.71 and goes as high as $28 per hour in states like New York, California, and Nevada.

However, travel agents are typically compensated in different ways, and their pay structure may depend on the company they work for and the type of travel they book. And while some are paid on an hourly basis, most receive a salary or are paid on a commission basis.

How much commission do travel agents really make?

• October 4, 2023
• Pickles Travel Network

As you start or continue on the exciting journey of planning your clients’ dream getaways, you are likely to encounter the invaluable assistance of travel agents. Travel agents are experts in “all things travel” and not only help navigate the complexities of trip planning but also earn their income through commissions from various travel-related bookings.

Let us take you on a detailed tour of the commission landscape for travel agents.

Together, we will shed light on the typical and high/low range commission amounts for hotels, cruises, airfare, tours, and other avenues you may not have considered — yet.

Accessible Travel

Travel agents specializing in accessible travel have a unique niche that caters to individuals with disabilities or special needs. Commission rates in this niche can vary widely depending on the suppliers and the level of specialization they offer. For example, suppliers like Wheel the World may offer a commission rate of 3%, which reflects their commitment to accessibility. On the other hand, Kingdom Strollers , which provides specialized stroller rental services for families with young children, may offer a higher commission rate of 15%. Accessible travel agents should explore partnerships with various suppliers to ensure their clients’ needs are met.

Airfare Bookings

Airfare is a fundamental aspect of travel, and travel agents can assist you in securing the best flight options. However, commissions for airfare can be more intricate, as they often depend on the agreements travel agencies have with airlines.

Typical Commissions: Commission rates for airfare can be relatively modest, ranging from 1% to 3% of the total ticket price. In some cases, travel agents might receive a fixed fee per booking instead.

High/Low Range: Domestic flights and economy class tickets usually offer lower commissions, while international flights and premium class tickets can yield higher commissions.

Airline Consolidators, on the other hand, have a more “Build Your Own Commission” structure.  So, it is pertinent to know with you are working with as a travel agent.

Cars, RV, and Transfers

Travel agents can expand their services beyond traditional bookings to include ground transportation options like car rentals, RV rentals, and transfers. These services can be particularly beneficial for clients who want flexibility and convenience during their travels. The commissions offered by suppliers in this category can vary based on factors such as the type of transportation, location, and the supplier’s agreement with the travel agent. Here’s a breakdown of these opportunities:

Car Rentals: Travel agents can earn commissions when they book car rentals for their clients. Commission rates for car rentals often fall within the range of 5% to 17%. The exact rate can depend on the rental agency and the volume of bookings made through the travel agent. Agents may consider establishing partnerships with major car rental companies as well as local or specialty providers to offer a wide range of options to clients.

RV Rentals: For clients seeking a unique travel experience, RV rentals are an exciting option. Commission rates for RV rentals typically follow a similar range, ranging from 5% to 17%. Travel agents can work with RV rental companies to provide clients with options for various sizes and styles of RVs, allowing them to embark on memorable road trips.

Transfers: Transfers, such as airport shuttle services or private transportation to and from accommodations, are essential components of a seamless travel experience. Suppliers offering transfer services often provide commission rates in the 5% to 17% range. By offering transfer services, travel agents can ensure their clients have a hassle-free journey from arrival to departure.

Cruise Bookings

Cruises offer travelers an opportunity to explore multiple destinations in one trip, and travel agents are there to guide cruisers through the vast ocean of cruise options. Commissions for cruise bookings can be quite diverse, influenced by the cruise lines’ policies and the complexity of the booking.

Typical Commissions: On average, travel agents can earn commissions ranging from 10% to 18% of the total cruise fare. This means that for every cruise package booked, the travel agent has the potential to receive 10 to 16 cents on every dollar spent.

High/Low Range: High-end cruises and luxury liners like AmaWaterways may offer travel agents higher commissions, while budget or discounted cruises might provide lower rates.  Disney, Holland America, and Princess tend to typically fall in the mid-level commission range, around 10%.

Specialized transportation suppliers, such as Yachtico rentals, may offer 3 to 5%.

Excursions and Tour Packages

For travelers seeking curated experiences and guided adventures, travel agents may offer assistance in booking tour packages. Commissions for tour packages can fluctuate widely, influenced by the tour operator’s policies and the complexity and exclusivity of the tour.

Typical Commissions: Commissions for tours typically fall in the range of 10% to 14% of the total package price – and on rare occasions, up to 20%. This means that your travel agent may earn 10 to 20 cents on every dollar spent on the tour, or more.

High/Low Range: Specialized or high-end tours, such as adventure or luxury excursions, may offer travel agents’ commissions at the higher end of the scale, while budget-friendly or standard tours might provide lower rates.

Hotel Bookings

When it comes to booking accommodations, travel agents can be a treasure trove of knowledge and resources. They assist in finding the perfect hotel that suits your clients’ preferences and budget. For their services, travel agents typically earn commissions, which can vary based on factors like the hotel’s size, type, and location.

Typical Commissions: The standard commission rate for hotel bookings falls in the range of 8% to 15% of the total room cost. This means that for every dollar the client spends on accommodation, a travel agent may earn anywhere from 8 to 15 cents as a commission.

High/Low Range: Keep in mind that commission rates can fluctuate. Luxury or boutique hotels may offer lower commissions, often closer to the lower end of the scale, while larger chain hotels, particularly for group bookings, might offer commissions at the higher end.  Places like Palace Resorts usually offer a 10% commission, and luxury entities such as Excellence Collection , and Belmond , offer various commission rates.  The better the relationship a travel agent forms with these luxury suppliers, the higher the probability of higher commission rates will be!

Specialized suppliers

Suppliers like Atlantis Events and VACAYA cater to niche travel markets. These suppliers often offer commission rates in the range of 10% to 14% to travel agents who bring them business. Travel agents who focus on specialized markets can develop expertise in serving this unique clientele and build strong relationships with specialized suppliers to earn competitive commissions while providing tailored experiences to their clients.

Travel Insurance

In 2023, travel insurance is more essential than ever, and travel agents can earn commissions by offering these policies to their clients. The commission rates for travel insurance can range from 10% to 36%, depending on the insurance provider and the specific policy sold. Companies like Allianz Partners and Travelex are known for offering competitive commission rates. Travel agents have an opportunity to educate their clients about the importance of travel insurance and assist them in selecting the right coverage, thus earning commissions while providing valuable protection for travelers.

Miscellaneous Travel

Travel agents who offer exclusive packages to destinations like C Lazy U Ranch or specialize in wine travel, such as Taste Vacations , can earn commissions of around 10% for bookings made through them. These niche travel experiences often attract clients seeking unique and personalized adventures. By collaborating with these specialized providers, travel agents can offer their clients memorable and customized travel experiences while earning commissions.

Rail Travel

Rail travel is a less common but fascinating niche within the travel industry. Suppliers like Belmond Trains may offer gross pricing that can include a 15% commission, providing travel agents with an opportunity to earn commissions while promoting rail travel options. Building relationships with railway transportation suppliers can be advantageous for travel agents looking to diversify their offerings and provide clients with alternative and eco-friendly travel options.

In addition to commission rates, travel agents have the option to earn money through service or planning fees.

Service or planning fees are a subject that often sparks debate within the travel agent community. Charging a service fee is a way for agents to compensate themselves for the extensive research, skills, and expertise they invest in planning travel experiences. It is crucial for agents to approach this aspect strategically to ensure it is well-received by clients.

• First and foremost, travel agents should never apologize for their planning fees.  Apologizing may inadvertently communicate desperation, which can deter potential clients. Clients prefer working with successful agents who confidently stand by the value they offer.
• Secondly, it is important to justify the service fee.  Explaining the reasoning behind the fee, such as investing in ongoing education, designing personalized itineraries, or prioritizing client needs over commission rates, can help clients understand the value they receive in return.
• Lastly, agents have the option to introduce the fee quietly without a public announcement, particularly if they are new to the travel industry and do not have an extensive client base. Service fees can be a way for travel agents to establish their worth, maintain financial sustainability, and continue providing exceptional travel planning services to their clients.

In the realm of travel planning, travel agents are not only guides but also rely on commissions for their livelihood.

By having a grasp of the commission structure for various travel categories, clients are empowered to make well-informed decisions when collaborating with travel agents, and, thus, travel agents are able to establish fair fees for their services.  A travel agent’s expertise can enrich a client’s overall travel experience, ensuring that their dream vacation becomes a reality.

Remember that travel agents are valuable partners in creating hard-to-forget memories. Travel agents’ commissions reflect the effort and expertise they invest in planning trips, helping their clients embark on journeys filled with adventure, relaxation, and exploration.

Meet Pickles Travel Network: The Host Agency That Makes It Easy to Start and Scale Your Travel Business

Whether you’ve just started your travel agent journey, or you’ve been on it… Pickles Travel Network has the tools and resources to help grow your business. Unlike other host agencies, we believe in letting our members choose what works best for their business. Pickles Travel Network allows you to choose your commission rate, along with whether or not you want to charge planning fees. As a member, you’ll receive instant access to our list of suppliers, several marketing platforms and monthly coaching/trainings. 

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Ptn iatan code: 45769253, ptn clia number: 00032299.

When you enroll with suppliers, you must use PTN’s codes to receive a commission from us. Want to sign up for your own CLIA or IATA numbers for exclusive travel benefits? See below.

Get your own IATA/IATAN ID Card:

The IATA/IATAN ID Card is the industry-standard credential to identify bona fide travel professionals. Key benefits include access to concessionary incentives from industry suppliers. Just added, the IATA MemberPerks program provides cardholders with daily savings at over 300,000 merchants across North America.

To be eligible, you must be registered with IATAN under PTN’s IATA number 45769253, working a minimum of 20 hours per week and earning a minimum of $5,000 per annum in commissions. You’ll need to send PTN a support ticket asking for approval. Once approved, we will send you a PRIN # to allow you to register with IATAN and ask for an ID card.

Get your own CLIA EMBARK ID:

Obtain a CLIA EMBARC ID for travel discounts and FAM (Familiarization) trips. Join CLIA as an Individual Agent Member, under Pickles Travel Network CLIA #00032299.

Once you’ve registered, submit a support ticket to let us know, and we will approve your registration.

Please select the option that best describes you for more information.

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How Travel Agencies Earn Money: A Complete Guide To Their Revenue Streams

Have you ever caught yourself wondering how travel agencies manage to stay afloat in this era of easy-peasy DIY trip planning? You’re not alone – it’s a question that has crossed my mind more times than I can count, especially after learning that travel agencies in the U.S. pulled in a whopping $17.3 billion in 2021! Like many of you, I was itching to peel back the curtain on this tenacious industry and get a glimpse at their revenue-generating magic tricks.

So buckle up and come along for the journey; our guide is your all-access pass to demystifying how these travel maestros keep their cash register singing.

Key Takeaways

• Travel agents get commissions from airlines, hotels, and other suppliers for bookings made for their clients. These commissions are a big part of how they earn money.
• Agencies also charge service fees for personalized itinerary planning and handle complex travel arrangements, adding another income source.
• Offering niche services like luxury eco – tourism or themed vacations allows travel agencies to attract specific types of travelers and create additional revenue opportunities.
• Big travel agencies use their size to negotiate better deals with suppliers and provide diverse services worldwide, helping them maximize profits.
• To increase earnings further, travel agents can promote exclusive deals on social media, network with local businesses for corporate arrangements, and consistently enhance their industry knowledge through training.

The Evolution of Travel Agencies

Travel agencies have evolved over time, from traditional storefronts to more modern and flexible home-based models. With the rise of online booking platforms, travel agents have had to adapt their business strategies to stay competitive in the industry.

A Brief History

I’ve seen the landscape of travel agencies transform over time. In their early days, these agencies operated as key gatekeepers between travelers and transportation providers like airlines and train companies.

They thrived on commissions from bookings, wielding exclusive access to reservation systems that were out of reach for the general public.

Over the years, travel agents have had to adapt quickly due to technological advancements. The internet burst onto the scene and suddenly, flight tickets and hotel rooms were just a click away for anyone with web access.

This revolution forced agencies to reevaluate their value propositions and dig deeper into personalized services where they still held an edge over digital platforms.

Shift in Business Models

Travel agencies have had to rethink their approach to stay competitive. In the past, they primarily earned from commissions on bookings for flights, hotels, and tours. Now, with the rise of online travel platforms and do-it-yourself booking options, traditional commission-based models don’t cut it anymore.

Agencies are turning towards more diverse business models that focus on value-added services. They’re charging service fees for personalized itinerary planning and leveraging relationships with providers to offer exclusive deals.

Some even create unique travel experiences that you can’t find elsewhere or cater to niche markets like luxury eco-tourism or adventure travel. By adapting in these ways, they keep their edge in a tech-driven market where travelers demand more control and customization.

Transition to Home-Based Agencies

Making the switch to home-based agencies marked a significant change in the travel industry. I traded my office for my living room, embracing flexibility and personalized service that clients love.

This move cut down on overhead costs dramatically, boosting profit margins without sacrificing quality. By leveraging technology and social media, I can connect with customers anywhere at any time.

Adapting quickly became crucial once I ditched the traditional storefront. Now, fostering relationships with clients and offering tailored experiences is at the core of what I do. It feels good to provide value that goes beyond just booking trips; from crafting unique itineraries to being there when plans go awry – nothing beats the personal touch I can give from my home setup.

Diversifying Income Streams

Diversifying income streams is essential for travel agencies to maximize their earnings and remain competitive in the industry. By offering a variety of services such as customized itineraries, niche travel packages, and corporate travel management, agents can tap into different market segments and revenue sources.

This not only increases their potential for earning commissions from airline and hotel bookings but also allows them to charge service fees or markups on specialized offerings. Moreover, exploring new sales strategies and partnerships with tour operators can further diversify income streams and create additional opportunities for generating profits.

In conclusion, diversifying income streams enables travel agencies to adapt to changing market demands and capitalize on various revenue sources beyond traditional booking commissions.

How Travel Agencies Make Money

Travel agencies make money through various revenue streams, including commissions from airlines and hotels, service fees, and custom itinerary services. To learn more about the different ways travel agents earn money, keep reading!

Breakdown of Revenue Streams

Travel agencies earn money through various revenue streams, including:

• Commission from Suppliers: Travel agents receive a commission from airlines, hotels, car rental companies, and other suppliers for bookings made on behalf of clients.
• Service Fees: They charge service fees for the time and expertise invested in creating customized itineraries and handling complex travel arrangements.
• Tour Packages: Selling pre-packaged tour deals gives them a margin on the price difference between what they pay the supplier and the package price sold to the client.
• Corporate Services: Business travel management generates income through negotiating corporate rates with suppliers and providing expense management solutions.
• Ancillary Products: Earning commissions from selling travel insurance, visa processing services, and other ancillary products adds to their revenue stream.
• Incentives and Bonuses: Some agents receive incentives or bonuses based on achieving sales targets set by suppliers or consortiums they are affiliated with.
• Group Booking Markups: Organizing group tours enables them to negotiate favorable rates with suppliers and earn markups on group bookings.

Corporate Travel Agencies

After understanding the revenue streams in travel agencies, corporate travel agencies stand out as a significant source of income. These agencies specialize in managing business-related travel for organizations.

They earn money through service fees charged to businesses for booking flights, accommodations, and other logistics required for corporate trips. Additionally, they often negotiate contracts with airlines and hotels to secure discounts or commissions on bookings made for their clients.

Moreover, corporate travel agencies can generate revenue from providing consultancy services that optimize their client’s travel spending through cost-saving measures like bulk purchasing deals and data analysis to identify better booking options.

Leisure Travel Agencies

Leisure travel agencies generate income through commissions on bookings, service fees, and markups on tour packages. They earn a percentage of the total cost when clients book flights, accommodation, or tours through them.

Additionally, travel agents may charge service fees for custom itineraries and specialized services such as destination weddings or adventure trips. Furthermore, leisure travel agencies often markup the price of tour packages provided by suppliers to achieve a profit margin.

By diversifying their revenue streams and offering niche services such as luxury travel experiences or themed vacations, these agencies can maximize their earnings in an increasingly competitive market.

Custom Itineraries and Niche Services

When creating custom itineraries and niche services, I focus on curating unique travel experiences tailored to each client’s preferences. By offering specialized packages such as adventure travel, culinary tours, or eco-friendly getaways, I can meet the specific needs of discerning travelers.

This personalized approach allows me to differentiate my services in a competitive market, attracting clients seeking exclusive and authentic experiences.

I leverage my expertise to craft bespoke itineraries that cater to niche interests like cultural immersion, luxury travel, or off-the-beaten-path destinations. By tapping into these specialized areas, I can provide added value and stand out from mass-market offerings.

Big Travel Agencies

Expanding beyond niche services, big travel agencies play a significant role in the industry. They often have a substantial market share and boast extensive networks with various suppliers such as airlines, hotels, and tour operators.

Scaling their operations to reach a broader audience, these agencies leverage their brand recognition to negotiate favorable terms with suppliers, which in turn impacts their revenue streams significantly.

By tapping into economies of scale and offering diverse services across different regions or continents, large travel agencies can maximize profits while providing comprehensive support to a wide array of clients.

Taking advantage of their size and resources, big travel agencies are able to offer competitive pricing on package deals due to wholesale buying power. Additionally, they can invest in cutting-edge technology solutions that streamline processes for both employees and customers – from booking platforms to customer management systems.

Maximizing Earnings as a Travel Agent

To maximize earnings as a travel agent, understanding the different types of travel agents and tips for increasing income are essential. Want to know more about how you can increase your revenue as a travel agent? Keep reading to learn all about it!

Different Types of Travel Agents

There are various types of travel agents, each specializing in different areas such as corporate travel, leisure travel, custom itineraries, and niche services. Corporate travel agents focus on providing business-related travel services such as booking flights and accommodations for employees attending conferences or meetings.

On the other hand, leisure travel agents cater to individuals seeking vacation packages, cruises, or adventure trips. Some agents specialize in creating customized itineraries tailored to clients’ specific needs and interests while others focus on niche services like destination weddings or eco-tourism.

Some big agencies offer a wide range of services; smaller home-based agencies often provide personalized attention to their clients by focusing on specific niches or customized offerings.

Tips for Increasing Income

To increase income as a travel agent, I suggest the following:

• Leverage social media to promote exclusive travel deals and engage with potential clients.
• Offer personalized services and carefully curated itineraries to attract high – paying clients.
• Network with local businesses to establish partnerships for corporate travel arrangements.
• Invest in ongoing training and education to stay updated on industry trends and destination knowledge.
• Implement a referral program to incentivize existing clients to recommend your services to others.

Understanding Commissions

As a travel agent, understanding commissions is essential for maximizing earnings. Commissions are the primary source of income for many travel agencies and agents. They are typically earned from booking flights, hotels, car rentals, and other travel services on behalf of clients.

These commissions can vary based on the travel provider and type of service booked. It’s crucial to have a clear understanding of commission structures offered by different suppliers in order to negotiate better deals and maximize profits.

Travel agents should also be aware of any incentives or bonuses offered by suppliers, as these can significantly boost earnings. Building strong relationships with preferred suppliers can lead to higher commission rates and exclusive offers for clients.

Creating Niche Services

As a travel agent, I develop niche services to cater to specific customer needs. This may involve creating specialized packages for unique destinations, such as eco-tourism adventures or culinary tours.

By offering niche services, I can differentiate my agency from competitors and attract clients seeking tailored experiences. Additionally, developing expertise in niche areas allows me to provide valuable insights and recommendations that set me apart as an industry expert.

My goal is to identify underserved markets and design custom itineraries that resonate with those audiences. This approach not only enhances customer satisfaction but also boosts my agency’s revenue potential through premium service fees and exclusive partnerships with niche suppliers.

In conclusion, travel agencies can generate income through various revenue streams, including commissions from bookings and service fees. They have adapted business models to diversify their earnings by offering custom itineraries and niche services.

Maximizing earnings as a travel agent involves understanding different types of agents and tips for increasing income. Overall, the profitability of travel agencies is dependent on their ability to adapt to changing market dynamics and offer unique value to clients.

1. How do travel agencies make money?

Travel agencies make money through commissions from airlines, hotels, car rental companies, and tour operators when they book travel services for clients.

2. Can I save money by booking directly instead of using a travel agency?

In some cases, you may find lower prices by booking directly; however, travel agencies often have access to special deals and can provide valuable expertise and support.

3. What are the different revenue streams for travel agencies?

Travel agencies earn revenue through commissions, service fees charged to clients, selling travel insurance or packages, and through partnerships with other businesses in the industry.

4. Do all travel agencies charge service fees?

Not all travel agencies charge service fees; it varies based on the agency’s business model and the complexity of the trip being planned.

5. How much commission do travel agents receive?

Commissions for travel agents vary but typically range between 10-15% of the total booking cost depending on the type of service booked.

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How much do Travel Agents make? Commissionable rates and Revenue Streams

By: Marium Farooq

October 30, 2023

Table of Contents

How much do Travel Agents make? Commissionable rates and Revenue Streams 

The travel industry, much like the rest of the world, has undergone significant transformations in recent times. The pandemic has in some ways reshaped the travel landscape. With the evolving economy and the dynamic changes in travel trends, let’s dive into how travel agents earn their income, exploring the factors influencing their earnings, their diverse revenue sources, and the commission rates they receive per booking.

There’s no one-size-fits-all approach when it comes to understanding the earnings of travel agents. It depends greatly on the type of travel agent. So, let’s first dive into what a travel agent is and explore the different types of travel agents.

What is a Travel Agent?

A travel agent is like your travel planning partner. They help you plan, organize, and book their trips by connecting them with airlines, hotels, rental car services, and tour operators. These experts have extensive knowledge about various destinations, travel options, and industry trends, which they use to offer personalized recommendations to their clients. And while they may not be as common in North America as once before, there is a strong network of agents helping millions of travelers worldwide book their journeys.

Travel agents often use Global Distribution Systems (GDS) to access real-time information on flight availability and prices. Their main role is to guide clients through the complexities of travel. They listen to your preferences, budget, and what kind of experience you’re looking for, and then they create a customized travel plan that fits your needs. Additionally, they take care of tasks such as booking flights, accommodations, transportation, and activities, ensuring everything goes smoothly. They can also provide valuable insights on visa requirements, travel insurance, and local customs to help travellers make informed decisions and avoid potential problems.

Travel agencies usually earn a commission, a percentage of the overall cost consumers pay. This rate can vary depending on the product or service being sold, which means that booking through a travel agency may sometimes cost a bit more than booking directly with the suppliers.

Regarding the terminology, you might hear both “travel agent” and “travel advisor.” In 2018, the American Society of Travel Advisors (ASTA) rebranded from “travel agent” to “travel advisor” to emphasize that their role goes beyond simple transactions. In Canada, a similar shift was noted in 2019. However, both terms are used interchangeably in the industry, so don’t worry if you hear either one. The important thing is that these professionals are here to make your travel experience enjoyable and stress-free.

Types of Travel Agents

Understanding the various types of travel agents is essential to gain insight into their commission earnings and revenue sources.

Offline Travel Agency

Before the internet’s rise, travelers would physically visit a travel agency to plan their adventures. With the advent of technology and online travel agencies, offline agencies have faced challenges. Within this category, there’s a new model known as a retail travel agency. Retail agencies operate like traditional retailers, buying travel products from wholesalers and selling them directly to customers.  creating itineraries, finding deals, arranging transportation and accommodation, managing refunds and cancellations, and handling insurance, travel documents, and currency.

Online Travel Agency (OTAs)

Online travel agencies, often abbreviated as OTAs, are major players in the travel industry, offering a wide array of travel services directly to consumers. These services encompass airfare, accommodations, car rentals, and vacation packages. For many tours and attractions, including Online Travel Agencies (OTAs) in their distribution strategy is crucial.

OTAs have emerged as the fastest-growing distribution channel for tours and activities, and they wield considerable booking influence, mainly owing to their substantial scale. Expedia, for instance, draws a s taggering 112 million monthly visitors across its network of travel websites. The success of OTAs highlights the significance of offering personalized services in today’s business landscape.

Online Travel Agencies OTAs  typically generate revenue by collecting a commission, which is a portion of the total booking expenditure incurred by the hotel. These commission rates can fluctuate depending on the specific OTA, typically falling within the range of 20% to 35%. Furthermore, certain OTAs also apply commission fees to additional services or amenities like breakfast or parking, which can result in an additional percentage increase.  

Wholesale Travel Agency

Wholesale travel agencies play a pivotal role in the complex travel distribution channel. They purchase travel products in bulk from airlines, hoteliers, and transportation companies and then sell them to retail travel agencies. These wholesalers are experts in planning, organizing, marketing, and creating holiday packages based on traveler preferences. 

Business Travel Agency

Business travel agencies, or travel management companies (TMCs), specialize in managing corporate travel. They offer several advantages over OTAs, such as expertise in business travel, quick booking, discounted airfare and hotel rates, 24/7 on-trip support, and crisis management. Business Travel agents excel at simplifying travel planning, reducing the time spent on research and reservations. They also assist business travelers in discovering accommodations and experiences that they might not be able to find on their own. 

Leisure Travel Agency

Leisure travel agencies focus on selling holiday packages to individuals seeking a break from their routine lives. These agencies provide customized packages, itinerary planning, accommodation booking, and guided tours tailored to customers’ preferences. Understanding the unique needs of leisure tourists is something that they excel at. 

Niche Travel Agency

The modern traveler seeks experiential journeys, leading to the rise of niche travel agencies. These agencies offer specialized tourism products designed for niche interests, such as ecotourism, agritourism, cultural tourism, health and wellness tourism, and cruise tourism. By catering to specialized customer needs, niche travel agencies have achieved remarkable success. 

Revenue Streams for Travel Agents

Travel agents can have various revenue streams, but their main earnings come from the careful planning and booking of different aspects of a trip for their customers. This can include booking airline tickets, arranging car rentals, reserving hotel accommodations, and coordinating tours and activities, all customized to meet the specific requirements of either an individual client or a larger group. Here are some of the ways Travel Agents make money:

Commissions 

Now that we’ve explored the landscape of travel agents, let’s unlock the secrets of their income. The primary source of income for travel agents is commissions. These commissions can vary widely, ranging from 5% to 30% , depending on factors like the type of booking, the elements involved in the travel package, and the vendor with whom they are affiliated. Besides commissions, travel agents can generate revenue through service fees. These fees can be charged for a range of services, such as planning, itinerary building, or even providing consultations.

Service Fees

Many travel agents have their own distinctive approach to service fees. These fees can take various forms, making each travel agent’s pricing structure unique. For instance, an agent might have a flat service fee that applies to all trips, and this fee can range from $150 to $300 or even more, depending on the agent’s practices. Alternatively, some travel agents may offer a separate fee exclusively for helping clients with travel planning.

Another interesting aspect is that travel agents can opt to provide planning and itinerary building services without handling the actual booking. In such cases, they may charge a fixed “planning” fee and once they’ve crafted the travel plans, their involvement ends. This approach offers a distinctive take on how travel agents serve their clients.

Revenue Stream from Add-Ons

Travel agents commonly have an additional revenue stream from the add-ons they offer once a trip has been confirmed. These may include items like travel insurance, private transfers, concierge travel services, cancel-for-any-reason coverage, and other offerings that yield profitable margins for the agent. Typically, these services involve upfront commissions and fees, significantly increasing the overall profit generated from the booking. For many travel agents, the sale of add-ons, such as travel insurance, constitutes a substantial portion of their revenue. This not only provides attractive commission rates but also fulfills a crucial need for travelers.

Marketing Fee from Supplier Listings

Promoting Supplier listings is another avenue that travel agents leverage. Businesses within the travel industry, including transportation companies, hotels, and rental companies, pay to have their services prominently featured on a host agency’s website. This prominent placement draws the attention of potential customers to these premium services. In return for this promotion, the travel agent  receives a payment from vendors for the promotional service.

Niche Travel Services

The most profitable model for an online travel agency is one that focuses on customer experience.Travel agents have the ability to create unique, tailored experiences for specific occasions, such as special needs travel, destination weddings, and sports travel. By designing travel packages for niche groups, such as corporations or interest-based organizations, travel agents can significantly boost their profits. Crafting these specialized packages involves ensuring seamless corporate travel experiences and promptly addressing any issues. Travel agents can harm their reputation if these aspects are not managed effectively. 

How Much Do Travel Agents Make Per Booking? 

Travel agents’ commissions vary based on factors like the booking type, travel elements, and the vendor they work with. Commissions can range from as low as  5% to as high as 30% . For instance, if a travel agent earns a 10% commission on a $2,000 booking, they would make $200. However, if the booking is complex, involves multiple countries, and the agent charges a service fee of $200, their total income from that booking would be $400.

Do Travel Agents Get Paid Hourly? 

Yes, travel agents can receive hourly pay, especially if they work for larger agencies. Hourly pay for travel agents in the United States averages around $23 per hour , reaching as high as  $30.82 per hour . However, travel agents are often compensated through other means, such as salary or commissions.

The income of a travel agent depends on their location, partnerships, and agreements. In this highly competitive industry, success comes to those who invest effort, energy, and passion into their work. Whether you’re a leisure travel agency owner, a business travel agency owner, or you specialize in niche travel, the key to growth lies in making the booking and travel process as seamless as possible for your clients. Understanding and catering to the specific needs of your customer base is essential in any industry, including the travel business.

In conclusion, travel agents play a crucial role in making travel dreams come true for their clients. While the industry has seen its fair share of challenges, travel agents continue to thrive by adapting to changing trends, exploring new revenue streams, and providing exceptional service. Travel is more than just booking flights and hotels; it’s about creating unforgettable experiences. 

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How Much Commission Do Travel Agents Really Make in the USA

Understand travel agent earnings in the USA. Dive into commission insights, exploring the lucrative world of travel agency compensation.

Table of Contents

There's no denying the complexity of travel agent commissions; the figures are nuanced, lacking clear-cut definitions or standardized practices. In essence, there's no universally accepted "average" travel agent commission. If that were the situation, we could have concluded this article already!

The travel industry has undergone significant transformations in recent years, with the rise of online booking platforms and direct consumer interactions. Amidst this evolution, travel agents continue to play a crucial role in providing personalized and curated travel experiences. 

One key aspect that often intrigues both aspiring travel agents and curious travellers is the commission structure within the industry. 

In this comprehensive guide, we'll explore the intricacies of how much commission travel agents earn in the USA across different segments of the travel industry.

The evolution of travel agent commissions

Historically, travel agents operated on a commission-based model, earning a percentage of the total booking value. However, the landscape has evolved significantly over the years. The rise of online travel agencies and direct bookings led to a shift in the commission structure, prompting many airlines and other travel service providers to reduce or eliminate commissions for agents.

Commencing around 2013, there was a notable resurgence in the number of travel agents. Concerns that the retirement of experienced agents would lead to a shortage were alleviated as a wave of new individuals entered the field, drawn by the appealing prospects of flexibility and travel perks associated with a career in travel agency.

Consider these industry statistics:

• In 2013, as per the American Society of Travel Advisors (ASTA ), nearly 70% of the agency workforce was aged 55 or older. Moreover, the percentage of agents aged 65 and above had nearly doubled, rising from 17% to 32% over the preceding decade.
• Consistent findings from our HAR's income surveys reveal that the median age of an agent falls in the early to mid-50s, with a majority opting to work from home. (In 2022, the median age stood at 55).

Did you catch that? We transitioned from having 70% of the workforce aged over 55 in 2013 to having 50% of the workforce under 55 in 2022! While ASTA and HAR tend to attract different demographics — ASTA traditionally encompassing larger, retail storefronts, and HAR typically representing smaller, non-storefront agencies — the trend is unmistakable. The peril of travel agents facing extinction is no longer imminent.

Current commission rates

Commission rates and salaries of travel agents in the USA can vary widely based on the type of service provided and the industry segment. It's essential to note that these rates may be subject to change, and agents should always check with their specific travel partners for the most up-to-date information.

1. Airline commissions

• Airline commissions can vary between 0% and 22%, depending on whether the flights are domestic or international. Nevertheless, certain airlines have recently decreased or removed commissions, leading agents to impose service fees directly on clients or shift their focus to alternative revenue sources.
• Some carriers, particularly low-cost airlines, may not provide any commission, while traditional carriers might offer a reduced rate.

2. Cruise commissions

• Cruise lines often maintain a more traditional commission model, with agents earning a percentage of the total cruise fare.
• Commissions for cruise bookings can range from 10% to 16%, depending on the cruise line, the type of cabin booked, and other factors.

3. Hotel commissions

• Hotel commissions can vary widely and may depend on the specific hotel or hotel chain.
• It's not uncommon for travel agents to earn commissions ranging from 8% to 15% on hotel bookings.

4. Tour and package commissions

• Commissions for tour packages and vacation packages can vary based on the tour operator or travel company.
• Agents may earn commissions ranging from 10% to 20% or more for booking comprehensive tour packages.

Service fees and ancillary income

In response to changes in commission structures, many travel agents have diversified their revenue streams. Some agents charge service fees, which can be a flat rate or a percentage of the total booking value. Additionally, agents may earn commissions through partnerships with travel insurance providers, ground transportation services, and other ancillary products.

Negotiating commission rates

Successful travel agents often engage in negotiations with travel suppliers to secure favorable commission rates. Building strong relationships with industry partners and demonstrating a high volume of bookings can provide agents with leverage to negotiate better commission terms.

Adaptation and diversification

In response to changes in commission structures, many travel agents have adapted by diversifying their revenue streams. Some have embraced service fees, charging clients for the expertise and personalized service they provide. Additionally, agents may earn commissions through partnerships with travel insurance providers, ground transportation services, and other ancillary products.

Commission structures of companies in travel industry 

Here are two general examples:

Expedia typically charges hotels a commission based on a percentage of the total booking amount. The commission percentage can vary, but it's often in the range of 15% to 20%. Expedia provides a platform for hotels to list their rooms and manages the booking process, including payment processing. In return, Expedia earns a commission for each successful booking made through its platform.

Some OTAs (Online Travel Agencies) may offer tiered commission structures, where hotels that provide a higher volume of rooms might negotiate a lower commission rate.

2. Virtuoso

Virtuoso is a network of luxury travel advisors who work with high-end clientele. Travel advisors in the Virtuoso network often earn commissions on the travel products they sell, including hotels, cruises, and tours. 

The commission rates can vary based on the specific travel supplier and the negotiated agreements between the travel advisor and the supplier. In addition to commissions, some travel advisors charge their clients service fees for the personalized planning and concierge services they provide.

Traditional travel agencies often earn commissions by booking flights, hotels, and other travel services on behalf of clients.

Similarly, hotels and other service providers may offer commissions to travel agents for booking accommodations and services for their clients. These commissions can also vary based on factors like the volume of bookings and the specific agreements between the travel agent and the service provider.

While the travel agent commission landscape in the USA has seen significant changes, opportunities for earning remain. Agents need to stay informed about the evolving industry trends, negotiate favorable commission rates with travel partners, and explore additional revenue streams to ensure a sustainable and thriving business.

As the travel industry continues to evolve, the role of travel agents remains pivotal, offering the expertise and personalized service that online platforms often cannot match. By navigating the nuances of commission structures, travel agents can continue to play a vital role in creating memorable travel experiences for their clients.

Here are some frequently asked questions about how much commission travel agents make.

Are travel agents commission based?

Yes, many travel agents earn commissions as a significant part of their income. Travel agents typically receive commissions from the travel suppliers, such as airlines, hotels, cruise lines, and tour operators, for the bookings they make on behalf of their clients. 

The commission structure can vary widely based on the type of travel product, the specific supplier, and the agreements in place between the travel agent and the supplier.

What determines the commission rate for travel agents?

Commission rates for travel agents can vary and are often negotiated between the travel agent and the travel supplier (such as hotels, airlines, cruise lines, etc.). The rates may depend on factors like the volume of business, the type of travel products sold, and the agreements in place.

Do travel agents earn a commission on all bookings?

Not necessarily. While many travel agents earn commissions on bookings, the structure can vary. Some agents may earn commissions on certain types of bookings (e.g., hotels, tours), while others may charge service fees for certain services.

How much commission do travel agents typically earn?

Commission rates can range widely. In the airline industry, for example, commissions have been reduced significantly over the years, and agents may rely more on service fees. For hotels and other travel products, commission rates may range from a few percent to more significant percentages.

Do travel agents charge clients additional fees?

Yes, some travel agents charge clients service fees in addition to earning commissions. These fees can cover the agent's time and expertise in planning and booking the trip.

Are there differences in commission structures for online travel agencies (OTAs) and traditional travel agencies?

Yes, there can be differences. Traditional travel agencies may have more flexibility in negotiating commission rates with suppliers, while OTAs often have standard commission structures. OTAs may also rely on other revenue streams, such as advertising and booking fees.

How has the commission structure for travel agents changed over time?

The travel industry has seen changes in commission structures, especially with the rise of online booking platforms. Many airlines have reduced or eliminated commissions, leading travel agents to adapt by incorporating service fees or focusing on other travel products.

Do travel agents earn commissions on travel insurance?

Yes, travel agents may earn commissions on travel insurance sales. The commission rates can vary depending on the insurance provider and the agreement between the agent and the insurance company.

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How do travel agents make money industry secrets revealed.

Travel agents, versatile in their professional capacities, have the option to be employed by a travel agency or to branch out as independent, self-employed agents.

In either scenario, their primary source of income is generated through planning and booking various components of a journey.

This could involve airline tickets, car rentals, hotel accommodations, among other aspects, all tailored to suit the needs of an individual client or a larger group.

Importantly, their remuneration comes at the end of the process, only after the client makes the final payment, signifying the completion of the travel booking.

Those who are employed by major travel agencies generally earn a steady salary, providing a certain level of financial security.

These agencies often incentivize their employees through additional remuneration models such as commissions, which are based on the volume of business each travel agent is able to generate.

The more travel plans they book, the higher their potential earnings. This effectively encourages agents to increase their productivity and customer base.

On the other hand, self-employed travel agents have a slightly different model of income generation. Their earnings primarily come from commissions they receive from suppliers or by imposing specific fees for their planning and consulting services.

This allows them the freedom to set their own rates and work at their own pace.

In today’s era, characterized by the convenience of the internet and a plethora of travel information available at one’s fingertips, it might seem counterintuitive that the demand for travel agents or agencies remains high.

However, many travelers find the vast array of choices and the necessary time to meticulously research these options to be overwhelming. This is where the value of a travel agent comes into play.

Their expertise in sorting through this abundance of information and crafting a streamlined, personalized travel plan is highly valued.

Consequently, the travel industry continues to thrive, proving that the role of travel agents and agencies is far from becoming obsolete.

12 Ways Travel Agents Make Money

How exactly do travel agents generate income? They have a diversified income model, deriving their earnings from a variety of sources. Whether it’s via commission-based earnings or fixed service fees, they collaborate with travel vendors and utilize numerous strategies to sell travel.

Let’s explore these diverse income channels:

1. Service Fees

A travel agent’s revenue can be significantly supplemented through service fees, charged for distinct elements of the travel planning process. Instead of solely relying on commissions for securing airline or hotel reservations, agents can levy a service fee for each component they book.

Additionally, their role often extends beyond mere booking; they serve as travel advisors, highlighting popular destinations or lucrative deals, thus enhancing the overall travel experience for clients.

A consultation fee for this advisory service may also be part of their earnings.

2. Cruise Incentives

The cruise industry, aiming to ensure maximum occupancy on their vast ships, often extends attractive commission rates or bonuses to travel agents based on the number of cabins they book.

Commissions could be as high as 12%. However, significant portions of the cruise fares, for example in a $3,000 fare around $1,000 might be attributed to taxes.

Agents only earn commission on the non-taxed portion of the cruise fare.

3. Commissions

Prior to the digital revolution in the 1990s, commissions from airline tickets and hotel reservations served as the primary income source for travel agents.

When online platforms enabled easy self-booking, these traditionally high commission avenues began to wane.

Today, although these commissions still constitute a part of an agent’s earnings, the rates have lowered considerably.

Domestic flights typically fetch around a 5% commission, whereas international bookings can secure between 10-20%.

A roundtrip within the US coupled with a $200 hotel room would thus generate a modest $20 commission. With this shift, many travel agencies and self-employed agents have pivoted towards a flat fee model to ensure a steady stream of income.

4. Travel Insurance

For many travel agents, selling travel insurance is a significant part of their revenue. Not only does this service offer lucrative commission rates, but it also fulfills a critical need of travelers, providing financial protection against unforeseen events during their journey.

By offering insurance, agents can enhance their service portfolio, ensuring a comprehensive travel experience for their clients, while also boosting their own earnings.

5. Car Rental

Facilitating car rental bookings presents another avenue for income for travel agents. Agents can secure a commission of approximately 8%, or opt for a flat fee model that could range between $25-40 per booking.

By collaborating with rental companies, they ensure convenience for their clients and augment their income stream.

6. Airline Tickets

Collaborating with an Airline Consolidator, agents can help clients secure the most economical airfare. These consolidators scan a vast network of domestic and international airlines to find the most cost-effective options.

If the travel agency or agent charges a flat fee for this service, the final ticket price can still be considerably lower for the traveler, offering them value for money while ensuring steady income for the agent.

Tour operators curate unique experiences, from a week-long fly fishing adventure in Montana’s pristine rivers to a wine tour in California’s top vineyards or a journey through Route 66. Travel agents play a vital role in promoting and booking these exclusive trips, providing their clients with memorable experiences while gaining a part of their income from this segment.

8. Premium Listings

Promoting premium listings is another avenue that travel agents leverage. Companies in the travel industry, such as cruise lines, airlines, or car rental businesses, pay for their services to be highlighted on a host agency website.

This prominent feature attracts potential customers to the premium services. The travel agent gets assigned an accreditation number by the vendor, which helps in keeping track of their sales.

By showcasing premium listings, the agent not only facilitates the client’s search for high-quality services but also secures a payment from vendors for the marketing service.

9. Specialized Travel

In the realm of specialized travel, agents can carve out unique experiences tailored for specific events, such as the Olympics, or particular demographics, like veterans or disabled persons.

They can also curate travel arrangements for niche groups, such as corporations or hobby-based organizations like gardening or cooking clubs.

Corporate travel arrangements are a lucrative sector that can provide a steady income stream.

By ensuring seamless corporate travel experiences and promptly addressing any issues, agents can enhance their reputation, and consequently, their business prospects. Many travel professionals have started their journey by establishing a stronghold in this area.

10. Vacation Packages

Travel agents understand the essence of leisure travel – a carefree experience devoid of hassle for the traveler.

Thus, all-inclusive vacation packages, including resorts, are extremely popular. These packages often comprise of airfare, accommodation, and rental cars, eliminating the need for travelers to worry about separate bookings.

Destination weddings, a trend that has gained significant traction over the years, is another variant of such packages.

Agents, by offering these comprehensive packages, can cater to clients’ needs while securing their earnings.

11. Mode of Travel

Travel isn’t always about planes, trains, and automobiles. Some vacationers desire unique modes of travel—bicycling from one New England Inn to another, journeying down a river on a houseboat, or canoeing in northern Maine’s rivers.

Savvy travel agents cater to these desires, meticulously managing the details and logistics of such unique travel experiences.

By doing so, they create unforgettable memories for their clients while expanding their range of services and income potential.

12. Custom Itineraries

Custom itineraries for clients with distinct travel desires can be a profitable niche for travel agents.

These clients may wish to eschew traditional bus tours in favor of unique adventures, like hiking in Peru’s Andes Mountains, paddling on the Amazon, or birdwatching in the Everglades before heading off to the Florida Keys.

y catering to the specific desires of these often affluent clients, travel agents can build a robust reputation and a steady stream of income.

13. Group Travel Coordination

Travel agents expand their earnings by arranging group travel, such as family reunions or club outings. These bookings often secure better rates and higher commissions. Agents can add a coordination fee for managing the complex logistics of group travel, enhancing their income while providing valuable, organized experiences for groups.

14. Referral Fees

Agents enhance their income by recommending additional services like travel insurance or tour packages, earning referral fees. This involves collaborating with other service providers and earning commissions for each customer referral, broadening their revenue sources beyond direct sales.

15. Membership Programs

Establishing a membership or loyalty program can provide a consistent revenue stream. In this model, clients pay a subscription fee for access to exclusive deals and personalized services, creating a sense of exclusivity and enhancing customer loyalty.

16. Hosting Workshops and Webinars

Travel agents can capitalize on their expertise by hosting paid workshops or webinars. These sessions, covering travel tips, destination insights, or planning strategies, provide an additional revenue stream while positioning the agent as a knowledgeable industry leader.

17. Affiliate Marketing

Agents can utilize their online presence, through websites or blogs, to participate in affiliate marketing. By promoting travel-related products or services, they can earn commissions, diversifying their income streams while offering valuable content to their audience.

18. Social Media Influencing

For agents with a robust social media presence, monetizing their platforms through sponsored content or brand collaborations can be lucrative. This strategy leverages their follower base and influence in the travel industry to generate income.

19. E-commerce and Merchandising

Selling travel-related merchandise, such as guidebooks or travel gear, directly through their website or office allows agents to tap into the retail aspect of the travel industry, creating another avenue for profit.

20. Virtual Travel Planning Services

In an increasingly digital world, travel agents can offer virtual travel planning services. This involves creating detailed itineraries, virtual tours, and travel advice through online consultations.

Agents can charge for these personalized digital services, catering to clients who prefer planning their travels from the comfort of their homes. This service is especially appealing to tech-savvy travelers or those seeking unique experiences that might not be available through traditional travel packages.

How Much Money do Travel Agents Make?

As per national statistics, the typical income for individuals in the travel industry stands at approximately $39,000.

However, one must bear in mind that this figure is an average that amalgamates the incomes of individuals working for an agency and those who are self-employed.

It doesn’t delve into the nuances that come with these different forms of employment or the variable income patterns associated with each.

Interestingly, despite this average, many agents in the industry surpass this figure significantly, earning incomes well into the six figures.

These individuals typically have an expansive network of clients, offer highly specialized services, or have carved out a niche for themselves in the industry.

Their success underscores the potential for substantial earning within the travel industry for those who can differentiate themselves and cultivate a robust client base.

Types of Travel Agent

The working environment within the travel agent community can be highly varied.

How do travel agents make money in these diverse settings?

They may choose to operate either from a home-based office, offering flexibility and personal convenience, or opt for a traditional office setting, which can provide a more structured work environment and greater opportunities for collaboration with peers and clients.

Regardless of their chosen work setting, the aim remains the same: crafting ideal travel experiences for clients.

How to Maximize Your Earnings

• Diversify – Your revenue streams should come from several different sources.
• Sell Add ons – Especially travel insurance. Also seek to sell “side tours” with hotel bookings.
• Work for a Corporation – Cha-ching. It’s not only a great way to make money. It’s a great way to bolster your reputation.
• Make Arrangements for Group Travel – This can be a headache. At the same time, it’s a way to prove your organization talents.
• Specialized Trips – This type of organized travel is increasingly popular. Specialized travel includes honeymoons and anniversaries, retirements and other milestones.

How do travel agents get paid?

• Commissions – you are paid a percentage of the cost.
• Service fees – you charge a fee for arranging each segment of travel.
• Salaries – you work for a large travel company.
• Net price overages – the vendor gives a price break, for example, for a number of hotel rooms (100). You add to the per room fee by a chosen dollar amount.
• Travel perks – This isn’t a dollar figure, but vendors may give you a price breaks on things like hotel rooms or airline seat upgrades.

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How Do Travel Agents Make Money?

When people find out I work with travel advisors, one of the first questions they ask me is how do travel agents make money? Do they charge fees or do they earn a living from commission?

Usually, the people asking are either those who are interested in becoming a travel agent or they're thinking about trying one out and want to better understand the income model a travel advisors operates under.

I'll go more in-depth in just a second, here's a list of steps that show how travel agents make money:

• Depending on the booking type and the agency, the travel agent may also charge the traveler a consultation fee. (Our travel agent research shows about 50-60% of advisors charge some sort of a fee.)
• A traveler works with a travel advisor to plan and finalize their travel itinerary .
• The travel advisor books the trip , often within the agency's preferred supplier list .
• Advisors are recognized by suppliers because they give an accreditation number specific to their agency. The number signals to the vendor/supplier who the agency is and if the supplier pays the commissions, the travel agency's commission level .
• The commission is paid to the travel agent. For most trips, the vendor pays a commission to the travel agent after the client has traveled . 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. :) Here's our article that deep dives into travel agent salaries .

A Short History

To give you an answer on how travel agents make money, it's important to know a little history. I promise to keep it short—it's actually pretty fascinating how the industry has changed over the years.

In the good 'ol days, a large portion of travel agency income came from airline commissions. Since tickets were expensive, in demand, and could only be ticketed by agents or the airlines, they were the bread and butter of every agency.

What about commissions from tours, hotels, and cruise lines? Those were just icing on the cake.   

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.

Airlines cut their commission because they could now reach travelers via the web and online travel agencies (OTAs) like Expedia and Booking.com. Travel agents, who were once wined and dined by airlines, were left out in the cold. Ouch.

With this rapidly changing travel landscape, travel agents needed to find a new way to make money . . . and fast. And that's where our modern-day story of 'How Do Travel Agents Make Money?' begins.

A Shift in Business Models

With commission cuts and clients' ability to book online, agencies needed to adapt to the new landscape of planning and booking travel. The travel agency community was, quite honestly, fumbled for about a decade. Many agencies that didn't adapt quickly enough had to close their doors.

From Storefront to Home-Based

But kiddos, I got news for you! While the storefront travel agencies that once peppered towns across the US aren't as numerous, there is a BUSTLING group of agencies that are less visible, working remotely.

There's been a HUGE influx of new advisors, especially after the pandemic. Call them solopreneurs/home-based/location-independent — whatever hip term you want to use. They may be harder to see without a storefront, but this new segment of the industry is now a force to be reckoned with!

By and large, the most popular agency model has switched from the storefront agencies of the past to the remote agencies of today.

Starting around 2013, travel agents started to see their numbers increase. When there was once a worry that there wouldn't be any travel agents to fill the shoes of those retiring, there was an influx of new blood, eager to take advantage of the flexibility and travel opportunities a travel agent career provides.

Check out these industry stats:

• In 2013, according to the American Society of Travel Advisors (ASTA) , nearly 70% of the agency workforce was older than 55. Not only that, but the percentage of agents over age 65 had nearly doubled, from 17% to 32%, over the prior decade. 
• Year after year, stats from our HAR's surveys indicate that the median of an agent lands in the early to mid-50s, with the majority working from home. (In 2022, the median age was 55).

Did you catch that?!? We went from 70% of the workforce being over 55 in 2013, to 50% of the workforce being younger than 55 in 2022!

While ASTA and HAR do tend to attract different demographics — ASTA was traditionally larger, retail storefronts and HAR is typically smaller, non-storefront agencies — but even so, the trend is clear. Travel agents are no longer in danger of going extinct. (HUZZAH!!!)

A big reason for this new influx? The rise of the agent that works remotely.

Call them solopreneurs/home-based/location-independent — whatever hip term you want to use. They may be harder to see without a storefront, but this new segment of the industry is now a force to be reckoned with!

Moving to Diversify Income

Along with the loss of airline commissions, travel agents face the challenge of many major cruise lines' non-commissionable fees (NCFs) .

Yup, it's self-explanatory: They're miscellaneous fees that are not commissionable. While a cruise sale may be $2,000, it's possible only $1,400 of it will be commissionable. (That deserves a boo from you as the audience.)

Travel agency business models (both corporate and leisure) are moving to become less dependent on commissions alone . Why the change? Not only did commissions from airlines and other vendors lower than in the past, but the industry has experienced huge industry and economic ups and downs including 9/11, recessions, and pandemics. (Am I missing any? PHEW, travel agents sure are resilient!)

Commission income went on rollercoaster rides during these times. During the coronavirus pandemic, for example, advisors were working overtime canceling trips, bending over backward to get their clients home safe, spending oodles of time to keep up to date with constantly-changing travel regulations, and rebooking trips despite the fact that commissions came to a halt.

That's right, they were working overtime for essentially no pay.

These major pitfalls helped advisors realize the importance of diversifying revenue streams to help stabilize income.

One solution for advisors to counteract diminishing commissions was to diversify their income by charging fees.

So how do travel agents make money in a world where their commissions are lower (and even unpredictable at times)? One solution for advisors to counteract diminishing commissions was to diversify their income by charging fees. This helped agencies steer away from complete reliance on vendor commissions, helping them pad a bottom line that was once cushioned by generous airline and vendor commissions.

The Breakdown of How Travel Agents Make Money

Okay, before we really dig into things, it's important to understand that different kinds of travel agencies make money in different ways.

To make it easier, we've broken down the question of how travel agents make money into 4 main types of travel agencies:

• corporate travel agencies,
• leisure travel agencies,
• travel agencies planning custom itineraries,
• and 'the big players'

How Do Corporate Travel Agents Make Money?

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

Airline tickets are the lifeblood of corporate agencies (also known as TMCs or travel management companies). Were TMCs going to stop selling airline tickets just because airlines stopped commission? No way. They had to get creative to offset lower commissions. What did these corporate agencies do? They implemented a service fee when they booked a ticket.

In 2023, HAR research reports show the median service fee charge for international air was ~$60 and ~$40 for domestic air.

In addition to air, corporate travel agencies earn commissions from booking cars and hotels for business travelers (typically 8-10% commissions). Corporate travel agencies make money mainly from service fees, overrides from the GDS and airlines, net/private fares , and from airline commissions.

The average service fee for air ticketing in 2022 was $39 for domestic air and $63 for international air for agents who booked corporate travel.

Travel agencies, depending on the airline contracts they have access to, are able to earn commissions on both domestic air (typically 0-5%) and international air (roughly 10-22%).

How Do Leisure Travel Agents Make Money?

After the commission cuts, many travel agencies shifted their focus to leisure products that still paid travel agent commissions. These products were 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.)

Charging a fee helps agents boost a travel agency's bottom line and compensates them for their expertise.

As a general rule, leisure travel agents make money from commissions from vendors pay on vacation packages, cruises, air, and other add-ons. However, consultation fees and service fees are becoming more common as agencies try to diversify income sources to become less dependent on supplier commissions.

If you're wondering how many travel agents make money by charging a fee, what are the most common fee structures and ranges, you'll want to take a peek at HAR's research reports .

In 2023, 49% of hosted advisors and 67% of independent advisors reported charging fees. Just to compare to the days of yore, only 33% of advisors charged a fee in 2017. Holy smokes, that's a big increase!

Charging a fee helps agents boost an agency's bottom line and compensates them for their expertise. Some agencies have what's called a 'look-to-book' fee or a "plan to go fee." This is an up-front fee for research, which an agency may apply some or all of it to your booking once you book, and keep it if you decide to go elsewhere. Other agencies charge a straight-up non-refundable fee for consultations.

If you're coming to an agency with an air-only booking, you can pretty much bet there will be a service fee (median international air was ~$60 and ~$40 for domestic air in 2023). But travel agents also make money by charging fees for things like FITs (custom trips), air-inclusive packages, tours, accommodations only, and cruises.

How Do Travel Agents Make Money with Custom Itineraries?

Mass market trips like cruises, all-inclusive resorts, or group bus tours around Europe aren't for everyone. When you want an itinerary built just for you, travel agents call that an F-I-T trip — in plain-speak, you'd call that a custom itinerary. But why be simple like that when you could come up with an acronym, right?! ;)

Custom itineraries are more time intensive and may involve booking with multiple companies, some that may not pay travel agent commissions. Agents that build FITs typically charge higher consultation, trip planning, and/or service fees to compensate.

FIT travel agents make money not only through the fees mentioned above but also through net pricing mark-ups and commissions from the different vendors they're booking.

There's no one-size-fits-all fee when it comes to custom itineraries. But if you're curious about learning more about what kind of fee structures an agency might have, check this out:

How Do the Big Travel Agencies Make Money?

Let's first define what a big travel agency is before we talk about how they make money. When we're talking about a 'big player', we're talking about an agency that has tens of millions of sales revenue. There isn't really a cut-off on when you hit this threshold. The reality is that if you're in this circle, you'll know it. They're the 1% of the travel agency world. :)

While most agencies earn commission based on their sales tiers, these 'big players' travel agencies earn overrides based on their revenue, as well as earn commissions.

What's an override? It's best to think of it as a bonus.

When a travel agency meets a pre-determined sales goal or move market share, the vendor compensates them. These overrides can come from any number of vendors including airlines, GDSs , cruise lines, tour operators, car rental companies, and more.

Now that you're aware of how travel agents make money, maybe it's time to consider it as a career? Join the free trial for our 7 Day Set Up Accelerator course .

So, next time someone asks you 'How do Travel Agents Make Money?' you can now give a thorough answer, full of information that will blow their mind.

If that's where you're at right now, great. That was my goal.

Feel free to ask any other questions about how the land of travel agencies work in the comments below. I grew up in the travel industry and have worked with many agents to start and grow their travel agencies. If you still have questions, drop us a line , join the conversation in the comments below, or connect with me on   Facebook ,  Twitter , LinkedIn , or Instagram .

Editor's note: This post was originally published in July 2012 and has been updated annually to keep up with current data.

About the Author

Steph grew up in the travel industry. She worked with thousands of agents in her role as a former host agency director before leaving in 2012 to start HAR. She's insatiably curious, loves her pups Fennec and Orion, and -- in case you haven't noticed -- is pretty quirky and free-spirited.

If you’re looking for Steph, she leaves a trace where ever she goes! You can find her on Facebook, Instagram, LinkedIn and Pinterest as 'iamstephly'. 🙂 She doesn't do TikTok as no one would ever see her again.

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Travel Agent Resources

How do travel agents get paid.

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By Courtney Eisen

July 27, 2023

Are you considering a career as a travel agent? Curious about how they make money? Look no further! In this article, we'll dive into the world of travel agent earnings and shed some light on this often misunderstood topic.

Do travel agents charge fees.

Let's address the elephant in the room - fees. While most travel agents charge fees for their services, at LuxRally Travel, we take a different approach. We believe that charging fees limits your earning potential. Our agents have found great success without imposing additional costs on our clients. In fact, we go as far as banning our agents from charging fees altogether. Nickel and diming clients is an easy way to get them shopping for someone else, like a LuxRally Travel Agent.

Suggested Article: How to Sell Yourself as a Travel Agent

How Much Do Travel Agents Make Per Booking?

Now, let's talk numbers. The amount travel agents make per booking varies depending on the vendor. On average, agents can expect to earn at least 10% commission, with 15% being considered generous and 20% being an amazing vendor payout. However, at LuxRally Travel, we prioritize client satisfaction over commission rates. It's not about sending clients to the vendor that pays the highest commission; it's about finding the vendor that will best meet your client's expectations. Building long-term relationships with satisfied clients is the key to maximizing your earnings.

Here's a breakdown of commission rates across various travel vendors - these are averages; there will always be outliers:

Hotels: Commission rates range from 7% to 35%, with the average falling between 10% and 20%.

Cruises: On average, agents earn a commission of 13% to 17%.

Airlines: While business class international travel can fetch a commission of 13% to 22%, domestic or coach class tickets typically do not offer commission payouts. In fact, not paying attention to commissions for flights can cost the agent money as ticketing can sometimes come with a fee.

Car Services: Agents can expect around 12% commission from car service providers.

Rental Car Companies: Commission rates vary between 5% and 15%.

Tour Companies: Agents earn a commission of 8% to 25%, depending on the tour.

Event Tickets: Commission rates for event tickets usually hover around 10%.

Vacation Packages: On average, agents receive commissions ranging from 10% to 18%.

Travel Insurance: Agents can earn, on average, 20% or more of commission on travel insurance sales.

Suggested Article: How to Start a Travel Business

How Much Do Travel Agents Make Per Year?

Now, let's talk about the earning potential in the travel agent industry. While top-producing agents can make well into the seven figures, it's important to note that this level of success requires either a massive client base or a wealthy clientele. However, the average travel agent, according to Host Agency Reviews, makes around $37,440 per year.

At LuxRally Travel, we take pride in training our agents to surpass the average earnings. Our strategies are designed to help agents reach the six-figure realm and beyond. With the right skills, dedication, and a focus on client satisfaction, you can achieve financial success as a travel agent.

Suggested Article: How Much Do Travel Agents Make?

When Do Travel Agents Get Paid?

Usually, agents will get paid after their client has traveled. The hotel will then send the owed commissions to the host agency who then pays out the agents. There are some instances when you get paid before your client travels. Examples of these quick-paying booking types include: nonrefundable rates, some cruise bookings, some airfare bookings and wholesale rate bookings. Travel agent accounting and payment schedules are covered in detail in our free travel agent training program .

Suggested Article: Travel Agent Start-Up Costs

Can I become a successful travel agent without charging fees?

Absolutely! At LuxRally Travel, we believe that eliminating fees can actually boost your earning potential by attracting more clients. In fact, we don't just believe it, but have proven it time and time again.

Is it better to prioritize commission rates or client satisfaction?

Client satisfaction should always be the priority. Happy clients will keep coming back, ensuring a steady stream of income in the long run.

What is the earning potential for travel agents at LuxRally Travel?

We train our agents to surpass the average earnings. With our strategies and support, you have the potential to reach the six-figure realm and beyond.

In conclusion, becoming a travel agent can be a rewarding career choice. By understanding how travel agents get paid and focusing on client satisfaction, you can unlock your earning potential in this exciting industry. At LuxRally Travel, we're here to support you every step of the way.

More Resources

Why You Should Be a 24 Hour Travel Agent

How Do Travel Agents Make Money?

How to Start a Travel Agency From Home

A Look at How Travel Agents Make Money

The average travel agent earns between $47,000 and $55,000 annually.

Most travel agents’ income is made up of their salary, but they also earn from commissions, service fees, and markups.

Generally, the more experienced and niche a travel agent is, the higher the commission and other fees they charge.

They are also multiple types of travel agents, with some specializing in leisure travel, others in business travel, and some offer niche travel services, like adventure or eco-tourism. 

Table of Contents

• 1.1 1. Leisure Travel Agents
• 1.2 2. Business Travel Agents
• 1.3 3. Niche Travel Agents
• 2 How Much Commission Travel Agents Make on Flights
• 3.1 1. Markups
• 3.2 2. Service fees
• 3.3 3. Package deals
• 3.4 4. Incentives
• 4.1 1. Commissions
• 4.2 2. Service Fees
• 4.3 3. Salaries
• 5 Travel Agent Commission Rates
• 6 Travel Agents Make Good Money
• 7 Travel Agents Don’t Expect Tips
• 8 Who Even Uses Travel Agents Anymore?

3 Different Types of Travel Agents

These are the three main types of travel agents. 

1. Leisure Travel Agents

Leisure travel agents specialize in vacation and leisure planning for both individuals and families.

They can book flight tickets and hotels and arrange tours and activities for travelers. 

2. Business Travel Agents

Business travel agents specialize in business travel for businesses and their employees.

Their services include booking flight tickets, hotel rooms and coordinating ground transportation. 

3. Niche Travel Agents

Niche travel agents specialize in niche types of traveling, like adventure travel or eco-tourism.

Each niche travel agent specializes in a specific niche, and use their niche travel knowledge to plan customized trips for niche travelers.

How Much Commission Travel Agents Make on Flights

Travel agents commonly receive commissions for selling travel products and services.

For flights, a travel agent can make 5% commission on domestic flights, and 10-20% for international flights.

For instance, a travel agent could sell an international roundtrip flight for $1,000. And if their commission rate is 15%, they’ll receive $150 for the sale. 

When it comes to cruises, travel agents can expect to make approximately 10-15% of the pre-tax price on a cruise.

4 Ways Travel Agents Make Money

Besides commission, travel agents make their money through the following four ways.

Travel agents sometimes add a markup to their travel products and services to earn extra income.

For instance, a travel agent could add a $10 markup to a hotel room that costs $90.

They’ll charge the traveler $100 total for the hotel room, with the $10 being their fee for finding and booking the room. 

The exact markup an agent charges depends on the products they’re selling and their arrangement with their supplier.

The most experienced travel agents naturally have the highest markup. 

2. Service fees

Travel agents also sometimes charge a flat or percentage service fee.

For example, they could charge you a flat $200 for arranging your trip, or they could charge 5% for the total cost of your trip. 

The service fees are charged for providing you with their services, including booking your flights and hotels, arranging for tours and transport, and filing your visa applications. 

The exact fee depends on the agent’s experience and reputation.

The most experienced and well-reputed travel agents charge the highest fees.

Inexperienced agents may not charge any service fees at all. 

3. Package deals

Travel agents often create and sell packages, which contain a group of products or services given at a discounted price.

These packages can be customized to specific travelers or designed to decrease costs for them. 

There are four main types of package deals. 

• Flight and hotel ticket packages: This package will have discounted flight and hotel tickets. 
• All-inclusive packages: This will include everything from flight and hotel tickets to meals and activities – all at a discounted price. 
• Tour packages: This package will include guided tours and activities in addition to flight and hotel tickets. 
• Cruise packages: This package includes a cruise vacation along with pre-cruise and post-cruise flight and hotel tickets. 

The agents earn from packages by adding markups, service fees, and commissions to their packages. 

4. Incentives

Travel companies often provide incentives and bonuses to agents for selling a specific number of services.

The incentives range from cash rewards to complimentary trips and other benefits.

Travel agents often earn additional income from these incentives. 

How Travel Agents Get Paid

Travel agents are paid via the following three ways.

1. Commissions

The travel agent receives a percentage of the sales they make for a product or service. 

2. Service Fees

Travel agents sometimes charge the traveler an upfront flat or percentage service fee directly. 

3. Salaries

Travel agents earn a base salary of $39,770 according to Salary.com

Travel Agent Commission Rates

Most host agencies provide between a 7% and 8% commission. 

These are the usual commission tiers for annual sales:

• $0 to $49,999: 10% 
• $50,000 to $249,999: 13% 
• $250,000 to $499,999: 14%
• $500,000 and higher: 15% 

These are the normal commission tiers in terms of passengers:

• 0 to 20 passengers: 10% 
• 21 to 49 passengers: 11% 
• 50 to 199 passengers: 13% 
• 200 and more: 15%

Travel Agents Make Good Money

Most travel agents earn between $47,000 and $55,000 annually, including their salary and other payments.

The exact income of a travel agent depends on their skills, experience, and relationship with suppliers. 

Experienced travel agents with a high number of sales and a good relationship with suppliers can earn substantially more than $55,000 per year, though. 

All travel agents receive their salary every month. But the rest of their payments depend on the specific business arrangement with their clients and suppliers.

Most agents receive commissions after a customer finishes their travels. Most also receive their service fees upfront.

Travel Agents Don’t Expect Tips

Travel agents sometimes receive tips from wealthy customers.

But it’s not particularly common for them to receive tips, nor do most travel agents depend on or expect tips as part of their job. 

Who Even Uses Travel Agents Anymore?

Many people still use travel agents today because they provide a personalized service, such as luxury travelers looking for a luxurious vacation that exactly matches their tastes and needs.

Travelers with complex trips that involve multiple destinations may hire travel agents to better manage their trips. 

In conclusion:

• Most travel agents earn between $47,000 and $55,000 annually.
• This figure includes a salary of around $45,000, with the rest of their income coming from commissions, service fees, and markups on goods and services.
• The exact income for a travel agent depends on their skills, experience, and relationship with their suppliers.
• An experienced travel agent with a large number of annual sales, a good relationship with their suppliers, and high commission rates can earn more than $55,000. 

Ella Dunham

Ella Dunham, a Freelance Travel Journalist and Marketing Manager, boasts an impressive career spanning eight years in the travel and tourism sectors.

Honored as one of "30 Under 30" by TTG Media (the world’s very first weekly travel trade newspaper), a "Tour Operator Travel Guru" and "Legend Award" winner, Ella is also a Fellow of the Institute of Travel, a Member of the Association of Women Travel Executives, has completed over 250 travel modules, and hosts travel-focused segments on national radio shows where she provides insights on travel regulations and destinations.

Ella has visited over 40 countries (with 10 more planned this year).

Related Posts:

How Do Travel Agents Get Paid?

If you’ve ever booked a vacation through a travel agent, you may have wondered – how exactly do travel agents make money? With so much information available online these days, why do people still use travel agents?

As a consumer, when you book with a travel agent, you likely aren’t paying them directly. So how do travel agents get paid?

If you’re short on time, here’s a quick answer to your question: Most travel agents earn commission from travel suppliers when they book vacations . They may also charge service fees to travelers.

Commission from Travel Suppliers

One of the primary ways travel agents get paid is through commission from travel suppliers. These suppliers include airlines, hotels, cruise lines, and tour operators. Commission is a percentage of the total cost of the booking that the travel agent receives as compensation for their services.

When travel agents book flights for their clients, they often earn a commission from the airlines. This commission can vary depending on the airline and the specific booking. Some airlines may offer a higher commission rate for first class or business class bookings, while others may offer a flat rate for all bookings.

Similar to airlines, travel agents can earn a commission when booking hotels for their clients. The commission rate can vary between hotels and may depend on factors such as the length of stay or the number of rooms booked.

Some travel agents may also have preferred partnerships with certain hotel chains, allowing them to earn higher commission rates.

Cruise Lines

Commission from cruise lines is another source of income for travel agents. Cruise lines typically offer a commission based on the total cost of the cruise package. The commission rate can vary depending on the cruise line and the type of cabin booked.

Travel agents who specialize in cruises often have extensive knowledge of different cruise lines and can provide valuable advice to their clients.

Tour Operators

Travel agents who book tours or vacation packages for their clients can earn commission from tour operators. Tour operators typically offer a percentage of the total cost of the package as commission. This can include guided tours, adventure trips, or all-inclusive vacation packages.

Travel agents can help their clients choose the best tour operator based on their preferences and budget.

It’s important to note that not all travel agents rely solely on commission. Some may charge service fees in addition to commission, while others may operate on a fee-only basis. Additionally, commission rates can vary widely, so it’s always a good idea for travelers to discuss payment terms with their travel agent before booking.

Service Fees Charged to Travelers

When it comes to booking travel arrangements, many people wonder how travel agents get paid. One common way that travel agents earn money is through service fees charged to travelers. These fees can vary depending on the type of service provided and the complexity of the travel arrangements.

Types of Service Fees

Travel agents may charge service fees for a variety of reasons. These fees can cover the time and expertise required to plan and book a trip, as well as any additional services provided. Some common types of service fees charged by travel agents include:

• Consultation fees: Some travel agents charge a fee for initial consultations, during which they assess the traveler’s needs and preferences.
• Booking fees: Travel agents may charge a fee for making reservations, such as booking flights, hotels, or rental cars.
• Change or cancellation fees: If a traveler needs to make changes or cancel their reservation, a travel agent may charge a fee to cover the time and effort required to process these changes.
• Concierge services: Some travel agents offer additional services, such as arranging tours, restaurant reservations, or special requests. These services may come with an additional fee.

Factors Affecting Service Fees

The amount of the service fees charged by travel agents can vary based on several factors. These factors include:

• Complexity of the trip: Planning a simple domestic flight may incur a lower fee compared to a complex international itinerary.
• Travel agent’s expertise: Highly experienced travel agents with specialized knowledge or access to exclusive deals may charge higher service fees.
• Destination: Travel agents may charge different fees depending on the destination. For example, planning a trip to a remote and less-traveled location may require more research and effort, resulting in a higher fee.

Transparency and Disclosure

It’s important for travel agents to be transparent about their service fees and provide clear information to travelers. This allows travelers to understand the costs involved before making a decision to use a particular travel agent.

Travel agents should disclose their fees upfront and provide a breakdown of the services included.

It’s worth noting that not all travel agents charge service fees. Some agents work on a commission basis, earning a percentage of the total cost of the trip from the travel suppliers. This means that the traveler may not incur any additional fees for using the services of these agents.

If you’re unsure about the fees charged by a travel agent, it’s always a good idea to ask for clarification and understand the services provided in exchange for the fees. This will help you make an informed decision and ensure that you get the best value for your money.

For more information on travel agent fees and services, you can visit websites such as ASTA (American Society of Travel Advisors) or IATA (International Air Transport Association) .

Salary from Host Agency or Travel Agency

Travel agents have different ways of getting paid, and one of the common methods is through a salary from their host agency or travel agency. When travel agents work for a host agency, they typically receive a base salary for their services.

This salary can vary depending on factors such as experience, location, and the type of agency they work for.

Host agencies often provide travel agents with training, support, and access to resources that help them excel in their roles. In return, travel agents earn a stable income from their host agency. The salary they receive may be based on a commission structure, where they earn a percentage of the sales they make, or it may be a fixed amount regardless of the sales generated.

Benefits of Salary from a Host Agency or Travel Agency

Receiving a salary from a host agency or travel agency has its advantages. Firstly, it provides a sense of stability and financial security for travel agents. Knowing that they have a fixed income allows them to plan their budget and expenses more effectively.

Furthermore, a salary from a host agency or travel agency can also incentivize travel agents to focus on providing excellent customer service rather than solely focusing on sales. This can lead to enhanced customer satisfaction and repeat business, further benefiting the travel agent and the agency they work for.

Drawbacks of Salary from a Host Agency or Travel Agency

While a salary from a host agency or travel agency offers stability, it may also limit the earning potential for travel agents. Since the salary is often based on a fixed amount or a commission structure, travel agents may not have the opportunity to earn additional income based on the volume or value of their sales.

Additionally, some travel agents may feel restricted by the policies and guidelines set by their host agency or travel agency. They may have limited flexibility in terms of choosing the types of travel packages they can offer or the destinations they can promote.

This can be a drawback for travel agents who prefer more autonomy in their work.

Other Revenue Streams

While travel agents primarily earn their income through commissions from booking trips, there are other revenue streams that they can tap into to supplement their earnings. These additional sources of income help travel agents stay afloat in an increasingly competitive industry and provide a wider range of services to their clients.

Ads and Referrals

One way that travel agents can generate extra income is through advertisements and referrals. By partnering with hotels, airlines, car rental companies, and other travel-related businesses, travel agents can earn a commission for referring their clients to these establishments.

They can also display ads on their websites or social media platforms, earning a commission for every click or purchase made through those ads.

Additionally, travel agents can form partnerships with local businesses and receive a referral fee for sending tourists their way. For example, if a travel agent recommends a popular restaurant or attraction to their clients, they may receive a small percentage of the revenue generated from those referrals.

This additional revenue stream not only benefits the travel agent financially but also provides their clients with valuable recommendations and discounts, enhancing their overall travel experience.

Group Travel

Another avenue for travel agents to earn income is through group travel. Organizing and facilitating group trips, such as destination weddings, corporate retreats, or family reunions, can be a lucrative source of revenue.

By arranging accommodations, transportation, and activities for a large group, travel agents can negotiate special deals and receive a commission for their services.

Group travel allows travel agents to leverage their expertise in coordinating logistics and providing personalized itineraries. They can also earn additional income by charging a fee for their time and expertise in planning and managing these group trips.

Furthermore, group travel fosters a sense of community and shared experiences among travelers. It allows them to enjoy the company of like-minded individuals while exploring new destinations, creating memories that last a lifetime.

In summary, most travel agents earn income through some combination of supplier commissions, service fees from travelers, salary from a host or travel agency, and other revenue streams like ads and group travel.

By providing expert advice and convenient booking services, travel agents earn commissions from travel companies when they sell vacations and trips.

Jennifer Morris is an avid solo travel adventurer who founded Solo Traveller after many years of journeying on her own around the world. She has backpacked through over 50 countries across 6 continents over the past decade, striking up conversations with locals along railway platforms, learning to cook regional dishes in home kitchens, and absorbing a global perspective while volunteering with various community initiatives.

With a Masters in Tourism and Hospitality, Jennifer is passionate about responsible and meaningful travel that fosters cultural exchange. Whether trekking through the Atlas Mountains, sailing to Komodo National Park, or taking an overnight train across Eastern Europe - she is always seeking her next epic destination.

When not globetrotting, Jennifer calls Vancouver, Canada home. There she enjoys kayaking local waters, curling up with books on faraway places, and gearing up for her next solo backpacking trip. As the founder of SoloTraveller, she hopes to motivate and inform fellow solo explorers from all walks of life to take the leap into their own adventures.

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The Sky’s The Limit: How Do Travel Agents Make Money?

How do travel agents make money?

• Charging a flat fee for their services
• Earning commissions through vendors
• Selling airfare through airline consolidators

When people start inquiring how to become a travel agent, their first question is always, “but how do travel agents make money?”  The idea of being a professional travel consultant is really appealing because of the flexibility and perks that come with it. However, many people hesitate to pursue it because they’re not sure exactly how travel agents make an income.  There is a little mystery surrounding this question, partly due to the fact that things have changed for travel agents over the past 20 years or so.

How technology changed everything

In the 1990s, most travel agents received their income from commissions. When airlines stopped offering travel agents commissions on airfare, it was a huge blow to the industry. Online travel agencies made it possible for travelers to book their own airfare and the Internet age allowed people to feel empowered to do their own trip planning. Many predicted the end of the travel agent. But then something happened that no one could have predicted.

Travelers came back to travel agents in unprecedented numbers.

Travel agents make an epic comeback

So what drove travelers back to travel advisors? Surprisingly enough, the very thing that pulled them away in the first place  — the Internet. Yes, we have a fount of knowledge at our fingertips. But we also have a lot of useless, confusing, and factually incorrect information floating around. Fishing through it for helpful answers is time-consuming and overwhelming. Today’s traveler craves a unique, custom-designed itinerary with lots of local flavor. They are willing to pay a travel expert to do this research for them. Using a travel advisor ensures they can get exactly what they want and avoid feeling too much like a tourist.

So now that we have a little history, how do travel agents make money today?

Three w ays travel agents make money

1. travel agents make money by charging a flat fee.

You’re not doing yourself any favors by promising the world on a shoestring budget.

If a travel agent can offer expert knowledge and a bespoke itinerary, travelers are more than willing to pay a flat fee for their time and service. In order to be successful and confident with charging a fee you have to t arget the right customer. You’re not doing yourself any favors by promising the world on a shoestring budget . You’re not Costco. You don’t sell travel… and patio furniture and mattress toppers, and bulk-packaged hot dog condiments. You are an expert at one thing and you do it really well . Customers whose top concern is the price tag might go elsewhere and you have to be okay with that.

2. Travel agents make money with commissions

While consultation or trip planning fees are starting to take the center stage, commissions are still out there! Cruiselines, hotels, and other travel vendors may offer commission or other perks for selling their products. In order to do this, you will usually need an accreditation number such as an IATA or CLIA. If you aren’t looking to start a travel agency from the ground up, you can get accreditation by working through a host agency .

3. Travel agents make money selling airfare

This is one of the easiest ways to increase your bottom line. If you’re not offering your clients airfare, it’s time to include it. Why? First and foremost, your clients come to you because they want to   save time  and because they trust you  to create a seamless experience. If you’re not offering a full service, they will have to go elsewhere for their air. You run a risk of eventually losing them to a travel agent who will offer a full service. But selling airfare can also add a quick chunk of change to each sale, especially if you are going through an airline consolidator,  like Centrav.

[Consolidator] fares are often low enough that travel agents can build in a good markup and still provide their clients with airfare saving…

An airline consolidator contracts special negotiated rates directly with airlines and then offers them to qualified travel agents. These fares are often low enough that travel agents can build in a good markup and still provide their clients with airfare savings they are unable to get anywhere else.

We’d love to show you how Centrav’s powerful, easy-to-use booking tools help travel agents make money on every ticket. Register here  to begin or read more about how Centrav works.

Shawna Levet

Shawna is passionate about helping travel agents grow their business and expand their knowledge as travel experts. She has been in the travel industry since 2011, helping agents and travelers alike find the best negotiated airfare and travel coverage to meet their needs.

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This was an excellent article. If an advisor is afraid of air they need to get training, as they are leaving money on the table!

Thank you, Sheryl! Yes, this is important!

Hello Shawna, Thanks for all your articles. It has given me a lot of information as to how to run my agency effectively. I am very grateful

Thank you, Victoria!

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How Do Travel Agents Make Commission?

Oct 15, 2020 | Abundance , Aspiring travel agents , Launch a travel business , Travel Business

If you’re beginning a travel business, you are probably super excited about the amazing perks that come with the territory – fantasy trips ✈️ to exotic locations (for research purposes, of course), being your own boss, living the “laptop life,” working on the beach 🏖️ instead of in some stuffy old office… It’s a dream job!  And not only that, you get paid a travel agent commission!  🤑 

But wait, who does the paying?  And how much do they pay?  And what can you do to get MORE of a travel agent commission?  🤔

These are questions I get A LOT, so I made a video 📽️ that breaks it down for you.  Take a look at the video and see what options there are for getting paid a travel agent commission for the amazing and vital services you provide.  

Of course, you know how WE do it at Careers on Vacation.  We’re not just about the travel hobbyist who books the occasional trip here and there (though there’s nothing wrong with that if that’s your thing).  We specialize in teaching people how to build 💲 six-figure-plus 💲 travel businesses and helping them achieve the abundance they’ve been dreaming of.  

My Careers on Vacation Mastermind is the ultimate tool for travel professionals and travel agency owners.  It gives you the answers, support, and tools you need to create successful, profitable travel businesses that you could run from anywhere – even while traveling yourself! 

If you’re ready to kick your dreams of owning a travel business into high gear, then I encourage you to consider the Careers on Vacation Mastermind.  You can apply by clicking the button below.

careersonvacation.com/readynow

You are in for an exciting adventure as you begin building your profitable, portable travel business.  I know you want to live your life doing what you love and getting paid for it.  I’d love to help you do just that. 

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Grab the free toolkit: Top 10 Tools for Travel Agents

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That’s why we put together Cyndi’s Top 10 Tools for Travel Agents – to give you the tools you need to grow your client base and business!

Inside, you’ll find:

💰 Valuable marketing content 👀 Helpful YouTube videos 🎨 Design resources 🎧 Podcast episodes 💸 Discounts and coupons ⭐ …and SO much additional gold to help you grow your business!

You’re going to love it!

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Commissions

How travel agent commissions work.

Commissions are the result of your hard work and dedication to your clients! As your host agency, we strive every day to ensure agents are paid in a timely accurate manner. So how do travel agent commissions work?

After you’ve made a booking for a client, you’ll enter it into the myTravelCRM  system. This step is vital to ensure you receive your commission! Once your client has traveled, and our team has received the commission from the supplier you booked with, you will be paid your commission.

Our travel agents also love that we pay out commissions on a weekly basis!

As a leading host travel agency, our Preferred Suppliers pay us the top commissions, which mean higher income for you !  Due to our collective sales volume, our Preferred Suppliers pay 13%, 15% and in some cases up to 20%.

All agents start out earning an 80% commission payout. This means that from the total commission the supplier has paid to KHM Travel Group, you will receive 80% of that amount.

To be eligible for 90% commission payout, an agent must reach and maintain at least $5,000 in paid commissions within the calendar year, which resets January 1. 

Travel Booking Example:

Starting with your very first booking, you earn some of the top commissions possible. Let’s look at what you can earn from making a $4,000 booking with the typical host agency compared to KHM Travel Group.

In this example, you could be earning an additional $376.00 with KHM Travel Group . Over time, this difference could mean thousands of extra dollars in your pocket!

*Many of our competitors artificially cap commissions at 10%. **Generally the commission paid by our vacation package suppliers is between 10% – 15% and cruise suppliers is between 10% – 16%. ***Reflects commission rate for agents having earned at least $5000 in commissions in the past 12 months.

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Expedia TAAP is the leading booking platform for travel agencies. Join thousands of your fellow travel agents worldwide to earn commissions, create memorable trips for travelers and grow your business.

Welcome to expedia taap, boost your travel business with expedia taap.

Access the world’s largest travel inventory

Tailor traveler experiences with our vast partner network in 200+ countries.

Maximize earnings with attractive commissions

Earn commission on total booking value inclusive of taxes and fees.

Exclusive rates for travel advisors

Offer travelers package rates at 350,000+ properties with an average 20% off consumer rates.

Simple-to-use tools that put you in control

A world-class booking experience, efficient support and marketing materials to grow your business. 

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The Pros and Cons of Having A Travel Agent

If you often travel, you probably don't need someone to assist you with booking your flights or looking for a great place to stay. This is because you are well experienced when it comes to domestic and international flights. But for first-timers or those who seldom travel, they could experience some challenges in these things, that's why they consider hiring a travel agent who can help them. But is it worth it to have a travel agent?

What Does A Travel Agent Do?

Usually, a travel agent is a person who works under a travel agency. Travel agencies assist people in booking flights, reserving a hotel room, or getting tickets to different itineraries. Though hiring travel agents requires additional costs, what they offer is convenience. With a travel agent, you don't have to experience the hassle of rebooking your flight. Not only that, but travel agencies also offer safer and more secure flights, which is crucial these days now that the COVID-19 pandemic is not yet over.

Hiring a Travel Agent

Should you hire a travel agent or not? Here are some pros and cons:

Get support and assistance.

If you are not comfortable booking your flight, or you want to travel with less hassle, you'll find hiring a travel agent beneficial in many ways. As mentioned, it will be more convenient to have someone who can help you make travel plans.

Receive discounts and perks.

Restaurants and other itineraries. Travel agencies are supposed to have established connections to hotels. This is why they can get you the best deals when it comes to accommodation and other amenities. Though you need to spend money on the travel agent's services, you can still lower your costs through the discounts and perks you can get from them.

You'll spend more than you expect.

If you are on a tight budget, hiring a travel agent might not be the best solution for you. This is because you need to spend more since you have to pay for the agent's services. Some famous travel agencies have higher rates compared to other companies. But the downside of hiring a not-so popular agency is you cannot guarantee if the it is trustworthy.

Looking for a reliable travel agent could be challenging.

There are many travel agencies out there, but it is not that easy to find a travel agent that is trustworthy, responsible, and accommodating. But if you insist on hiring a travel agent, make sure to research a reliable and reputable one. You can do this by checking the reviews of other travellers on the agency's website.

Hiring a travel agent has both pros and cons. That's why you need to weigh the advantages and disadvantages of having a travel agent. If you are travelling to different time zones and you want to save money, getting assistance from a travel agency might not be suitable since you have to pay for their services. But if you can afford to hire travel agents and want more convenience, then you may consider doing so. What matters most is you enjoy your trip and get the most out of your adventure.

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Do I still need a travel agent?

I f you’ve planned a vacation before, you know firsthand how stressful the planning process can be. Between booking hotels, flights and excursions, planning a vacation can feel like a full-time job. American travelers spent an average of 8 hours and 44 minutes reviewing travel content and resources ahead of their trips and read up to a whopping 277 pages of information on average, according to a 2023 survey from Expedia Group and Luth Research .

The time commitment behind planning a vacation could be one of the factors driving the 14 percent year-over-year increase in travelers who are likely to use a travel advisor, as reported by the American Society of Travel Advisors (ASTA) . Working with a travel agent could save you time and money when planning a complex vacation, but alternatives like online travel agencies, and credit card concierge services could be more affordable. So which option is better — doing your own legwork and booking trips online or hiring a travel agent?

What travel agents do

Travel agents help plan and book travel for vacations, special events or group trips, but their jobs have evolved over the years, particularly in the post-pandemic world.

“In the past, travel agents were very transactional — able to book your flights, hotels, and tours. While that is still a service we provide, in a post-pandemic world, travelers are looking for more,” says Annie Jones, travel advisor and owner of Telos Travel , “They want to think less, have options personalized to their interests, and experience destinations in a more authentic way.”

These days, travel agents advise on multiple aspects of a trip to create a bespoke travel experience. Their role can include:

• Regional tours and experiences
• Cultural etiquette
• Developing a custom itinerary
• Finding exclusive deals, amenities and offerings
• Handling emergencies and changes
• Organizing travel insurance
• Booking transportation (airfare and ground transportation)
• Making restaurant reservations
• Booking hotels, cruises and excursions
• Arranging necessary travel documents and visas

To reflect the expansions on a travel agent’s role, the American Society of Travel Advisors officially transitioned the title to “travel advisor” in 2018. Some of the best travel advisors even earn certifications and attend trainings to continue their education and stay on top of industry changes.

Do you have to pay a travel agent?

The cost of using a travel agent varies wildly, since there are different types of travel agents and travel advisors. In the past, many travel agents’ services were free, as they earned a commission off the trips they booked paid out by the airlines and hotels. Some still are.

However, after the pandemic, when many businesses in the travel industry struggled to recover (along with the changing landscape of travel agents in general) kickbacks from these vendors became less common. According to a survey by Travel Weekly , 71 percent of travel agencies in 2023 charged some form of service fee for working with them. These days, there are three main ways travel agents get paid:

• Flat rate fee
• Hourly rate

Travel agents may charge a percentage ranging from five percent to 15 percent of the trip’s cost. Others may charge a flat rate, anywhere from $100-$500 on average. Some advisors charge an hourly rate to research, plan or arrange your trip. Agents may also ask for a deposit that’s returned once you take your trip or goes towards the total cost.

Although hiring a travel advisor might seem expensive, it could potentially save you money. Paying a travel agent $200 to save you $400 on airfare or obtain a cruise upgrade worth $600 means you’re still coming out on top.

“I think one of the biggest misconceptions out there is that it’s more expensive to book through a travel advisor,” Jones shares. “While most advisors do charge professional service fees, just like you would to a financial planner or lawyer, the actual cost of your trip is no different than if you were to book it on your own.”

To better understand the cost of working with a travel agent, ask about their fee structure to determine if their price feels fair for your budget.

Are travel agents influenced by commissions?

That depends on how your travel agent gets paid. Even though it’s declined in recent years, many travel agents still collect at least part of their earnings from commissions paid by hotels and other travel products.

When there’s a commision tied to each travel booking, travel agents benefit monetarily from what you buy which makes it hard to be unbiased. As such, those commissions will likely influence which vacation packages and options you’re provided. However, that’s not to say that there aren’t travel agents who put your preferences and must-sees at the forefront of their planning process.

Money tip: You may find less of a hard sell on certain travel packages if your travel agent charges a flat fee or a percentage of your total trip. But this could mean a higher out-of-pocket cost. Consider their fee structure and how your agent approaches travel planning as you decide who to work with.

Can a credit card concierge replace a travel agent?

The short answer is… sort of. Many of the best travel credit cards offer concierge services that help cardholders organize travel, accommodations and tours, and they even help when emergencies or travel problems arise. But not to the extent a travel agent might go to.

“Many of my clients are surprised I offer 24/7 support while they are traveling,” says Jones. “If they face an unexpected challenge, I’m there to help resolve the problem or answer their question so they can just focus on enjoying their vacation.”

Complimentary concierge services can take the place of a travel agent on some aspects of your trip. While concierges can help you cross small items off your to-do list, they typically won’t plan a full trip itinerary for you.

• For example, The Platinum Card® from American Express offers Platinum Card Concierge , through which their agents help you purchase event tickets, make dining or spa reservations and handle general travel inquiries.
• Cardholders of the Capital One Venture X Rewards Credit Card now have free access to PRIOR , a program providing insider destination advice and curated experiences.
• Those with Chase Sapphire Reserve® can use the Visa Infinite Concierge, which can help reserve sports events, dining or even Broadway tickets.

In some cases, concierge benefits seem vague, so it’s worth calling or emailing to ask if they can help with your specific issue or need. However, in most circumstances, they probably won’t be able to plan and book an entire curated vacation for you.

If you’re booking travel on your own and simply want to lighten the load, then concierge services might be the way to go. However, if you want a fully customized itinerary without the legwork and within budget then a travel agent is your best bet.

Should you use a travel agent?

The decision to use a travel agent depends on a few factors and is closely intertwined with your preferences, budget and type of trip.

Travel advisors are particularly helpful when planning complex travel. Their connections and expertise come in handy for corporate, group, luxury or special-occasion travel, which could make it worth their fee. Advisors are also helpful when you’re not experienced with vacation planning or have time commitments preventing you from planning. In those cases, having a travel advisor could be a win.

Ask yourself a few questions to determine if it’s the right choice for you.

• Does this trip require a lot of planning (i.e. corporate, group, anniversary or highly-specific travel)?
• Are you looking for unique experiences, tours or upgrades?
• Are you experienced in booking your own travel or designing your own vacation itinerary?
• Do you have the time to dedicate to travel planning?
• Are you visiting a location and culture you feel comfortable navigating on your own?

For less complex travel where you’re on a tight budget, you might consider using resources already at your disposal like the credit card concierge service on an existing credit card or booking through an online travel agency (OTA) like Expedia or Kayak.

Travel advisors offer their experience, expertise and connections to take the stress out of planning a vacation. When you want to spend less time planning, get access to exclusive experiences, or need someone to create a vacation you couldn’t imagine planning on your own, a travel agent could save the day.

Pros of using a travel agent

Still not sure whether a travel agent would be worth the cost? Some additional advantages of using a travel agent as opposed to planning your trip yourself include:

• Saving money . According to a survey by Condor Ferries, travel agencies can save customers an average of $452 per trip through promotions and deals from suppliers that average travelers don’t have access to.
• Expert planning on important trips. Whether it’s corporate travel, a honeymoon or a 50th anniversary trip, you’ll want it to be impeccably planned.
• Help with trip disruptions. Many travel agents offer 24/7 support before, during and after your trip to help with any challenges or changes that arise.
• Upgrades, benefits and extras . Travel agents have connections the general public doesn’t. Their connections and partnerships may get you hotel upgrades, VIP treatment, connecting rooms, free breakfast or other perks.
• Curated experiences . A destination expert might find you experiences you never have discovered on your own, like an insider, after-hours visit to Cambodian ruins or a vintage car rental in Italy.
• Extensive vacations . You need expert destination knowledge to plan a cruise to Antarctica, a hiking trip to Bhutan or a two-month-long Galapagos expedition. If you want all the bells and whistles and money is no object, a travel agent may be able to get you into the most coveted hotels, tours and spots.
• You’re a beginner or don’t have time . Beginners planning a DIY vacation can easily get overwhelmed. The time it takes to plan a trip can also take time away from your other responsibilities. Travel agents make the process easy.

Using a travel agent doesn’t mean you’ll get a vacation that’s just like everyone else’s. Travel agents use the details of your personal preferences, budget and needs to customize your experience. Some of them even specialize in particular destinations or have relationships with hotels and tour guides which could help you get room upgrades, better rates or VIP experiences.

“These relationships not only allow for special treatment, but upgrades are nice, right? After all, you can’t VIP yourself! In addition to perks, these relationships also allow us to have high-level contacts in the event something should go wrong or a client needs assistance… These are things you are not going to get if you DIY.” — Mandy Pullin Luxury travel advisor of six years with DPP Travel

Some travel advisors have even developed specific travel niches.

“I’m seeing advisors specialize more than they did in the past,” explains Adeline Kuroki, a travel advisor and owner of Savor & Soak Travel Co. “I think this is great for travelers… For example, some advisors will specialize in luxury travel, and make it their mission to visit and understand the pros and cons of luxury resorts all over the world.”

When you have an advisor who’s an expert on one location, you get more curated experiences too. Kuroki specializes in travel to Japan and helps clients navigate the complexities of booking in such a popular destination.

“I can quickly tell them which experiences need to be booked well in advance to avoid missing out, and which can be decided on closer to their travel dates. And as Japan becomes an increasingly popular tourist destination, I’m able to recommend and book more off-the-beaten-path locations that offer a lot of the same sights and experiences as more well-known places.”.

So even with developments in online bookings and credit card concierge services, travel advisors are irreplaceable when it comes to designing a personalized itinerary in a destination with which you’re unfamiliar.

Cons of using a travel agent

While there are many benefits to using a travel agent, there are also disadvantages to consider. Some of those include:

• Not redeeming points or miles. If you have credit card points or airline miles to cash in, a travel agent might not be the best fit since they typically can’t help you redeem them for the trips they plan. However, niche advisors can best advise you on booking using your points and miles or use your stash to book for you.
• Less flexibility to make updates. Once your travel agent locks in reservations, it can be difficult to change things since you may have put down a deposit.
• Added layer of communication. For your travel agent to plan a vacation you’ll enjoy, you have to clue them in on your likes and dislikes, budget, preferences, needs and more. And when you need to make adjustments, you’ll have to go through them.
• Missing out on planning your own trip. Planning your own trip is exciting for some folks. Plus, you can build the exact type of experience you want at a price point that’s comfortable for you.
• Fees and price. Travel agents can save you money sometimes, but it comes at a cost that might not fit into your budget. Some agents charge high fees or percentages of the total vacation cost.
• Finding the right agent. It can take time to find the right travel agent, advisor or expert. If it takes too long, DIY travel might be more convenient.

Do you earn rewards on travel booked by an agent?

You might be hard-pressed to find a travel advisor where you earn rewards by booking through them as opposed to your credit card’s travel portal . However, it’s worth noting that the merchant code for travel agents is often “travel”, which means the travel agent fees you pay through a qualifying credit card could be eligible for bonus points if your card offers boosted rewards on the travel category.

Certain travel benefits still work for you even if a travel agent books your trip. For example, you’ll get lounge access if your credit card offers it regardless of who booked your airfare, which airline or class you’re flying. As long as you use the appropriate card to pay for the trip, it shouldn’t matter if you or the travel agent physically made the purchase.

You might also earn frequent flyer miles through an airline’s loyalty program if your travel agent can include your frequent flyer number on your reservation. You’ll also still have your airline elite status recognized if a travel agent booked your airfare for you, but you may or may not get hotel loyalty brand points. The same goes for recognition of your hotel elite status . It’s best to discuss this directly with your agent or call the hotel to confirm, as each case may be different.

Keep in mind: American Airlines announced in February 2024 it plans to limit which tickets purchased via third parties are eligible to earn AAdvantage frequent flyer miles. The details were still vague at the time of publishing, but it could mean that your ticket purchased by a travel agent would still earn miles – assuming they purchase through a qualifying site or directly on American's site – but if you go the DIY route for your trip and purchase online through a third-party site, you may not earn miles at all.

The bottom line

Choosing to use a travel agent or book vacations online ultimately depends on your personal preferences, budget and the type of trip you’re planning. Opting for online booking might be quicker and more cost-effective, but the personal touch and stress-free approach provided by a travel agent can’t be overlooked.

The days where travel agents just booked your flight and hotel are long gone. Today, they offer bespoke itineraries tailored to your interests and budget while specializing in certain destinations or forms of travel. Taking the time to find and build a relationship with a reliable travel agent could save you money on your next trip even if there’s a fee involved. But it’s still important to weigh the pros and cons to know if hiring a travel agent is right for you.

TravelArk 2.0

Stavropol krai: economic & historical briefing, friday, june 14, 2019, pyatigorsk, stavropol krai, russian federation, photos & videos.