Ride Guides: Top Attractions You Can't Miss

When you make a booking for a client—whether it’s a cruise, a hotel stay, a flight with specific carriers, or a
tour package—the supplier of that travel product has essentially factored in a marketing cost. This cost,
often referred to as the commission, is set aside for travel agents who bring them the booking. It is a pre-
determined percentage of the gross sale amount, though not all travel components are commissionable. For
instance, many low-cost airlines and some car rental agencies do not offer commissions. Understanding
which products yield commissions and how they are calculated is fundamental to building a successful
travel business.

KEY TAKEAWAYS

• Suppliers normally pay commissions • Payment is often sent after travel is completed • Host agency splits affect your take-home income • Planning fees can create more reliable revenue

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Where Does the Commission Money Come From?

When you make a booking for a client—whether it’s a cruise, a hotel stay, a flight with specific carriers, or a
tour package—the supplier of that travel product has essentially factored in a marketing cost. This cost,
often referred to as the commission, is set aside for travel agents who bring them the booking. It is a pre-
determined percentage of the gross sale amount, though not all travel components are commissionable. For
instance, many low-cost airlines and some car rental agencies do not offer commissions. Understanding
which products yield commissions and how they are calculated is fundamental to building a successful
travel business.

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