How Do Travel Agents Make Money?
Travel agents are facing a challenging environment these days, as online booking sites such as Travelocity and Hotel Tonight make it simpler than ever for customers to book flights or accommodations without the help of a travel agent. As fewer customers use these services, job security for travel agents could be at stake.
Travel agents have many ways to make money, and while the top earners typically earn six figures annually, there is also room for those looking to break into the industry at a much lower salary level. Here are some of the most common methods by which these professionals generate income:
Commissions
Travel agents typically make their living from commissions paid to them by suppliers and accommodation providers for selling their products, such as airlines, hotels, tour operators and car hire firms. Furthermore, they may receive commission for arranging travel insurance and other add-on services that can be sold to clients.
Service Fees
With more complex trips than ever and travelers spending hours researching and comparing flight prices, it is increasingly important for travel agents to provide a personal touch. Many charge a nominal service fee in order to cover their time researching and creating customized itineraries for clients.
Focused Income
One of the most lucrative ways to make money as a travel agent is by specializing in one particular niche. For instance, some agents specialize in destination weddings or honeymoons; these niches can generate substantial revenue due to large budgets.
If you’re thinking of becoming a travel agent, the initial step is deciding what type of services you want to offer. This decision will influence how much commission you can earn and what prices you charge your clients.
Some travel agents are able to sell multiple types of services to their clients, such as packages that include multiple destinations and activities. This can lead to an impressive boost in their commission rates.
Specialistism can also increase an agent’s income, as it allows them to work with clients who have specific budgets or needs. For instance, couples planning a honeymoon may be willing to pay more for an agent who specializes in destination weddings.
Travel agents often rely on discounted trips, particularly those for children or senior citizens, as a source of income. But in order to maximize these sales opportunities, you need to promote them strategically so that enough customers take advantage of them and meet your sales targets.
You’ll need a good reputation and excellent customer service skills, as you may have to deal with some demanding customers who may have complicated questions. Furthermore, be prepared to answer calls at any time of the day or night; some customers may live in different time zones than yours.
