Travel agents are facing challenges with traditional commission models evolving, requiring them to rethink their strategies to maintain profitability and competitiveness in the industry.
The standard commission rates for travel agents typically range from 5 to 15pc based on the booking value, but many suppliers have reduced or eliminated commissions, creating financial uncertainty for agents.
Agents experience several issues with commissions, including delayed payments, complexity in collecting from multiple suppliers, discrepancies in payments, and challenges in calculating commissions accurately.
To maximise commission earnings and secure higher payouts, travel agents can explore tiered commission structures, utilise booking platforms offering optimisation tools, leverage loyalty programs, bundle services, and cultivate strong relationships with host agencies to benefit from exclusive perks and improved commission structures. Regularly assessing and optimizing relationships with suppliers is essential for agency owners to increase profitability and enhance business operations in the ever-evolving travel industry.
