How Do Travel Agents Make Money? (2024)

FAQs

How Do Travel Agents Make Money? ›

Travel agents earn commissions from travel vendors that we book for our clients. This is the entire portion of our revenue. We make a small percentage from some airlines, but most of our revenue comes from commission paid to us by tour operators, cruises and hotels.

Generally, leisure travel agencies' main revenue is from commissions 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.

Commissions. The most important way that a travel agent earns money is by receiving a commission on travel sold. This can include a commission from booking flights, accommodation, tours, car rentals, entertainment tickets, insurance, and so much more.

Disney travel agents work on commission, which means that you'll only make money when your clients book their vacations and complete their stays. Disney pays a 10% commission to travel agents.

The most promising candidates for the position of travel agent combine a passion for travel with a talent for sales and customer service. These individuals are communicative, detail-oriented, and resourceful. They have a true desire to help and work hard to build long-term relationships with satisfied customers.

How much money do travel agents make? This comes down to certain factors such as the type of clients, level of expertise and the ability to offer specialized services. According to Indeed, the average salary of a travel agent in the US is $49,608 but there are many making up to six-figure incomes.

We earn commissions from travel vendors.

Travel agents earn commissions from travel vendors that we book for our clients. This is the entire portion of our revenue. We make a small percentage from some airlines, but most of our revenue comes from commission paid to us by tour operators, cruises and hotels.

Having a travel agent side hustle is becoming a trend due to the many benefits it offers. According to a Travel Weekly survey, 17.5% of advisors are booking at a rate far beyond that of 2019, and 13.6% report that business is steady.

National Geographic looks into whether or not people still use travel advisors, and the answer is a resounding yes! "Do people still use travel agents?" That's a question we get asked a lot at the American Society of Travel Advisors.

The primary role of a travel agent is to help people make travel arrangements, which might include booking flights, hotels, sightseeing tours, and making dining recommendations. A travel agent assesses each customer's unique needs, preferences, and budget to ensure their trip goes as smoothly as possible.

What percentage do travel agents get? ›

The commission percentage agencies earn depends on numerous factors, the most important one being which private contracts you have access to. Here's a general rule of thumb on the airline ticket commission range you can expect as a travel advisor: Domestic: 0-5% International: 10-22%

Often, travel agents receive deals directly from hotels and tour operators that you may not have access to. They also have contacts with resorts and hotels, so they can bargain for better deals.

Each agent gets a commission from Disney for the bookings they've made on your behalf. That's why most Disney travel agencies have a policy of not charging their clients any sort of itinerary planning fee — because they're already getting paid.

A travel agent's role is to help people plan, choose and arrange their holiday. They will usually work to a budget set out by whoever is planning the holiday. They also offer advice and opinions on where to go and local tourist attractions, events and customs.

The main difference between travel consultants and agents is that travel consultants plan trips, while travel agents book them. Travel agents may be better skilled at locating the best prices for flights and hotels.

Overall, how frequently an agent travels really depends on the agent. Some travel agents may be able to take advantage of IATA discounts and FAM trips more frequently than others. Much like any other person, the agent's travel preferences, lifestyle, and financial capabilities can all influence how often they travel.

A Travel Agent Can Handle the Unexpected. Between weather delays, natural disasters, flight cancellations, lost luggage and much more, a lot can happen on vacation. Travel agents act as the traveler's advocate in the event something goes wrong, helping navigate the challenge of making any necessary itinerary changes.

What is the hidden cost of booking a trip without using a travel agent? Time is the hidden cost of booking a trip without using a travel agent.

What do travel agents do everyday? ›

Travel agents typically do the following: Arrange travel for business and vacation clients. Determine clients' needs and preferences, such as schedules and costs. Plan and arrange tour packages, excursions, and day trips.

It's a myth that working with a travel agent will automatically cost you more; most get paid via commissions from the hotel or outfitter. Sure, some travel agents do charge a fee for putting together an itinerary, but most will credit you that fee if you end up booking the trip through them.

A travel agent's salary can range from around $24,000 to $60,000 annually. That's not including the bonuses and commissions that many agents earn. So in that, combined with the fact that you can work in the travel industry and from wherever you'd like, it can be quite worth it.

After 178 years in business, Britain's Thomas Cook, the world's oldest travel company, has gone bust. Thomas Cook's collapse on Monday sparked the UK's largest repatriation in peacetime history.

But cost isn't the only barrier. The perception of “one-size-fits-all travel” is another barrier to travel consumers choosing to use travel agents. In fact, the study found that nearly one-third of travellers list 'the inability to customise their trips the way they want' as a top concern with using travel consultants.

Contrary to popular belief, booking through a travel agent won't necessarily cost you more than booking online. While some travel agents charge a nominal fee for planning your trip, many agencies don't charge anything extra, instead earning commission off the airline, hotel, or tour they book for you.

May work full time or part time, but most work 40 hours a week. May work more than 40 hours a week if self-employed.

I would say that for the most part, this group of agents generates sales between $25,000 to $100,000 in annual sales. Again, if you assume an average 10% commission of $2,500 to 10,000 and apply your host agency commission structure and fess you can easily guesstimate your potential income.

How many people work as a travel agent? ›

Twenty years ago on Feb. 9, 1995, Delta Air Lines capped base travel agent commissions at 5 percent (down from 10 percent), the first in a salvo of commission caps and cuts that ultimately led to the demise of base airline commissions across the industry.

For travel professionals in the US: New ID Card cost is USD 40.00 whereas Renewal cost is USD 35.00. For travel professionals outside of the US: The price of an ID Card may range from USD 30.00 to USD 70.00 depending on the class of agency you work for (additional courier fees may apply). Was this article helpful?

The commission structure with Disney is pretty straightforward. For most vacations, especially for new travel agents, your commission starts out at 10%. That means if you book a $5,000 trip, you'll make $500 after the person travels. Disney cruises are a little different depending on the volume of sales you have.

Being an independent contractor takes commitment and dedication. Being a Disney Travel Agent is a lot of fun, but like with any job, there will be times that it is tough. You will need to push through the tough times if you want to succeed. As mentioned above, it will take time to develop a clientele.

Becoming a travel agent isn't as simple as declaring yourself one. Typically, the first step is to sign up for a program that'll teach you the basics of running your own travel business. There are a variety of programs to choose from, depending on your interests and career goals.

Equipment should include a computer (PC or notebook), a mobile phone, a printer, fax machine, and copier (or an all-in-one system), and reliable, fast internet access. Be aware that today's travel agents are highly mobile and need a good mobile phone with a strong calling plan.

Travel agents have global connections and also exclusive access to special deals on flights, hotels, tour packages and activities so ideally they can only offer you the most reasonable holiday options than booking online. Also, they keep you informed about special deals if you sign up for the newsletter.

“I should be hired for this role because of my relevant skills, experience, and passion for the industry. I've researched the company and can add value to its growth. My positive attitude, work ethics, and long-term goals align with the job requirements, making me a committed and valuable asset to the company.”

What personality do you need to be a travel agent? ›

Travel agents tend to be predominantly enterprising individuals, which means that they are usually quite natural leaders who thrive at influencing and persuading others. They also tend to be conventional, meaning that they are usually detail-oriented and organized, and like working in a structured environment.

A travel agent is a highly organized professional who is passionate about travel and helping others. They are focused on creating the best possible experiences, directly catered to their clients. They work with hotels, airlines, and other vendors to create travel packages and experiences that their clients will love.

How do commissions vary? While the average commission range for many of the big online travel agents is 15-25%, some smaller and more niche OTAs offer lower rates – sometimes as low as 4%. It's very common for commission rates for properties on the same OTA to vary based on their region and property type.

In addition to earning a living and helping their clients arrange trips and vacations, travel agents can earn travel discounts for hotel stays, car rentals, cruises and tours.

Formal Training Needed to Become a Travel Agent

In terms of the training time you need to put in before becoming a fully-fledged travel agent, it depends. You could start your career right after high school, or you could put in one to four years to earn a certificate, associate's, or bachelor's degree in tourism.

Signing up your travel agency is quick, easy, and free. Earn generous commission on our broad range of travel supply. We calculate your earnings based on the total booking value, including taxes, so you earn more. As you make more bookings, you will move up our commission tiers and increase your revenue per booking.

We will pay you through our vendor, Partnerize, up to 6% of a qualifying Consumed Verified Transaction after the Traveler completes their stay. Please refer to the table below and to the Program Terms and Conditions for further details. Cancelled bookings do not earn a commission.

Both the luxury cruise market and niche cruise markets pay a true 10% base commission and can be highly lucrative niches.