How Do Travel Agents Make Money?


Travel agents can work for a travel agency or work as independent travel agents.

Either way, travel agents make money by booking travel segments – such as plane, rental car, and / or hotel reservations – for a client or group. You are not paid until final payment is made.

Travel agents make money with a salary if they work for large travel agencies. Travel agencies may also pay their employees a commission or additional salary, depending on the volume of business booked by the travel agency.

Independent travel agents earn money primarily by earning commissions or charging certain fees for planning services.

With the ease of the internet age, one would think that the travel industry would move away from using travel agents or travel agencies. But many travelers find the glut of choice and time to research these choices overwhelming. And that highlights the benefits of using a travel agency or travel agents.

This is why the travel industry is flourishing.

12 Ways Travel Agents Make Money

How Do Travel Agents Make Money? Travel agents make money from a number of sources. Whether they earn a commission or charge a fixed fee, they work with travel suppliers and other sources to sell travel.

Here are some ideas to consider:

1. Service charges

A travel agent earns money by charging fees for separate elements of the trip. For example, instead of charging a commission for booking tickets with airlines or hotel rooms, travel agents make money by charging a service fee for each part booked.

Agents can also function as travel counselors, informing customers of popular destinations or travel deals. For this service, an agent may charge a consultation fee for travel planning.

2. Cruise Incentives

The cruise industry, given the large number of passengers required to fill a ship, may offer travel agents a high commission or bonus based on the number of rooms booked by customers. A common commission rate is around 12% for cruises.

But a large portion of customer bills are taxes paid. For example, for cruise seat reservations that cost $ 3,000, $ 1,000 may be taxes. When booking cruises, agents only receive a commission on the amount of untaxed charges.

3. Commissions

First of all, a bit of history. Prior to the 1990s, a large portion of travel agent income came from commissions on tickets booked with airlines and reservations with hotels. When it became easy for a traveler to book flights or hotels using the Internet, the days of earning big commissions on airline tickets and accommodation declined.

Travel agent commissions made up most of their income, but that has changed. Most travel agents who earn commissions by booking tickets on airlines earn 5% on domestic flights and 10-20% on international flights. Commission rates are similar for hotel reservations.

What if the plane ticket to and from the United States was $ 200? With a $ 200 hotel room? You would earn $ 20 for booking both items. Instead, many travel agencies and independent agents choose to charge a fixed fee for the services.

4. Travel insurance

Selling this type of insurance is the biggest part of the revenue a travel agent can earn. You earn commissions on the sale of this type of insurance.

Yes, it is a money generator but also a valuable service to provide to travelers.

5. Car rental

An agent can earn an 8% commission or a flat fee of $ 25-40 for making reservations with car rental companies.

6. Airline tickets

There is a company called Airline Consolidator. The consolidator will often be able to search airlines to find the cheapest ticket for travelers. Consolidators work with international and domestic air travel.

On, if the travel agency or agent charges a fixed fee, the end result for travelers is always a lower priced ticket.

7. Visits

Tour operators develop impressive trips. They can organize a weeklong fly fishing trip to Montana’s best rivers. They can visit the best wineries in California. They can visit key stops on Route 66.

8. Premium Ads

Tour operators pay to have their cruise lines or destination accommodation featured on a host agency’s website. Other travel providers that pay for premium ads include car rental companies and airlines. The seller assigns you an accreditation number to track what you are selling.

9. Specialized travel

For this, an agency or agent can develop a tour for a specific event, such as the Olympics or a professional sports championship. Or, the trip can be a certain segment of the population, such as veterans or people with disabilities.

Specialized trips can also be organized for specific groups, such as companies or organizations (gardening or cooking clubs for example).

Organizing business trips can provide a stable income. Make business travel easier and be responsive to any issues, and your reputation will grow. Many professionals have cut their teeth by making inroads here, which helps them grow their business.

10. Vacation Packages

Pleasure travel should be just that – no worries or headaches for the traveler. This is why vacation packages such as all inclusive resorts are so popular.

Destination wedding has also gradually gained in popularity as a vacation package with airline tickets, accommodation, and rental cars included in the price.

11. Mode of travel

It’s not just planes, trains and automobiles. Vacationers may want to cycle from one New England inn to another, take a houseboat down a river, or canoe down a river in northern Maine.

The savvy agent takes care of the details, getting the vacationer to and from the destination and setting up the adventure.

12. Custom itineraries

There are clients who want to travel all over the world. They don’t want a bus tour. They want to take a hike in the Andes mountain range of Peru, followed by a canoe paddle on the Amazon.

They want to birdwatch in the Everglades and then roam the Florida Keys.

Earn a good reputation from one of these (rich) clients and you will make money.

How Much Money Do Travel Agents Make?

According to the national figures shown, the average income is $ 39,000. But it’s important to remember that this average salary statistic doesn’t differentiate between someone working for an agency and someone who is self-employed.

Many agents in the industry earn six figures.

Types of travel agents

There are different ways of working in the travel agent community. How Do Travel Agents Make Money? They can work at home or in the office:

Home travel agents

You are self-employed and work from a home office.

Online travel

Your work for online travel agencies.

At the store

You work for large agencies.

How to maximize your income

To diversify

Your sources of income should come from several different sources.

Sell ​​add-ons

Mainly travel insurance. Also look to sell “side tours” with hotel reservations.

Work for a company

Cha Ching. It’s not just a great way to make money. It’s a great way to boost your reputation.

Arranging for a group trip

It can be a puzzle. At the same time, it’s a way to prove your organizational skills.

Specialized travel

This type of package tour is becoming more and more popular. Specialty trips include honeymoons and birthdays, retirements, and other milestones.

How are travel agents paid?

Commissions – you get paid a percentage of the cost.

Service Fee – you charge a fee for arranging each segment of travel.

Salaries – you work for a large travel agency.

Net price overruns – the seller gives a price discount, for example, for a number of hotel rooms (100). You add a chosen dollar amount to the per room charge.

Travel Benefits – This is not a dollar figure, but vendors may give you price reductions on things like hotel rooms or airline seat upgrades.

Image: Depositphotos


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