Services

Travel Agencies

How travel agencies use commission to motivate sales teams and drive bookings for trips, flights, and hotels.

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Travel Agencies

The travel industry is heavily commission-based. With US travel agency revenue exceeding $20 billion annually, commission often represents 30-60% of total compensation for travel consultants.

Commission Models

Product Type Typical Commission
Package tours 10-16% of trip value
Airline tickets 0-5% or flat fee
Hotel bookings 10-20% of hotel value
Travel insurance 20-40% of premium

Roles

Travel Consultants: OTE of $45,000-70,000 with 30-50% variable.

Corporate Travel Managers: OTE $65,000-100,000 with bonus on contract value.

Key Challenges

  • Seasonality: 60% of bookings in peak season creates income volatility
  • Cancellations: Commission often returned on customer cancellations
  • Online competition: Falling margins pressure traditional agencies