In Business World Have you ever wondered how travel agents get paid? Do they make anything from helping clients book hotel rooms?
The role of travel agents is to make travel arrangements for people. And that includes booking flights, sightseeing activities, dining and experiences, and, of course, accommodation arrangements. They earn a commission from arranging a travel plan that best fits a customer’s needs, interests, and budget.
So, how exactly does one earn a travel agents commission, or payment, by booking accommodation for their clients in a hotel payment platform?
Table of Contents
The Traveler Plans the Trip via the Travel Agent
Usually, the travel agent is the one who deals with the travel or client directly prior to the trip. Together, they plan the travel itinerary, which is everything from the accommodation to the desired activities during the duration of the stay. Usually, the travel agent will listen to the client, ensuring every minute detail is considered, to plan the kind of trip the client desires.
At this point, you, the client, are presented with the available accommodation options, depending on your location and budget. And from that, you can make a choice.
The Travel Agent Books the Trip
Once everything the client wants for their trip is clear, the travel agent begins the booking process. Travel agents usually have a prior agreement with hotels, cruise ships, and other accommodation facilities on the percentage of commission they will earn for each booking.
Usually, a travel advisor is given an accreditation number to facilitate these bookings in the hotel payment platform’s portal. This unique number facilitates the hotel’s commission calculation, as the travel agent is credited with every booking they make.
That said, the travel agent is at liberty, depending on the booking and their terms, to charge the client a service fee. This is basically a fixed rate that a client pays, outside of commission, for the facilitation of the service.
The Commission is Paid to the Travel Agent
Finally, the travel agent is paid a commission depending on how many bookings they bring. Usually, a booking is deemed valid when the client travels. That said, there are two types of commission programs. One is the fixed commission method, where the travel agent earns a fixed flat rate for every guest that they bring in. This figure is known and communicated beforehand.
Then there is the tiered commission method. With this, the rate is determined by how many bookings a travel agent brings. Usually, the higher the booking, the higher the commission. This incentive is an especially popular method in the cruise ship business, where filling to capacity is important.
Travel Agents Commission is One of the Biggest Income Bringers for Agents
While travel agents earn money in a lot of ways, commissions from hotel booking platforms make the highest chunk of earnings. However, without a proper system and follow-up, some of this commission falls through the cracks or takes too long.
Using an agency is one of the best ways to ensure you are getting paid for bringing in hotel clients.