How Travel Agents Make Money
Travel agents primarily earn their income from the commissions provided by travel suppliers for bookings such as airline tickets, rental cars, and hotel reservations. They receive a percentage of the total cost from the supplier. Additionally, travel agents may charge service fees directly to the traveler, which can vary based on the trip’s complexity and duration. In some cases, agents charge planning fees for their services.
Services Offered by Travel Agents
Travel agents not only handle bookings but also offer assistance in planning different aspects of a trip. They can:
- Book golf tee times
- Find car rentals
- Plan affordable trips to visit relatives
- Book inexpensive rooms abroad
Agents have expertise in finding deals, saving clients both time and money. Their ability to access reservations not available to the general public, along with their on-call support during trips, adds significant value to their services.
Commission and Fees
The majority of travel agents earn commission from the suppliers they work with, where the commission rate depends on the supplier. It’s usually a percentage of the total booking cost. Some travel agents outline their commission rates on their websites.
To understand the fees that might apply to a particular service, it is advisable to inquire directly with your travel agent. The planning fees they charge can vary based on the services provided.