do travel agents have to pay a monthly fee

Understanding The Norm: Do Travel Agents Typically Pay Monthly Fees?

• Last updated May 15, 2024
• Difficulty Advanced

• Category Travel

As the world of travel continues to evolve and adapt to the digital age, one may wonder if travel agents still exist, and if so, how do they make money? In particular, many people are curious about whether or not travel agents typically pay monthly fees in order to maintain their business. In this article, we will delve into the inner workings of the travel agent industry and explore the norms surrounding their financial obligations. So, buckle up and join us on a journey of understanding the norm when it comes to travel agents and monthly fees.

What You'll Learn

Understanding the concept of monthly fees for travel agents, factors contributing to travel agents paying monthly fees, pros and cons of travel agents paying monthly fees, alternatives to travel agents paying monthly fees.

Travel agents play a valuable role in the travel industry by helping individuals and groups plan their trips, book accommodations, and arrange transportation. While most travel agents earn a commission on the services they provide, some agencies also charge monthly fees to their agents. This concept of monthly fees can be confusing for both aspiring travel agents and travelers, so it's important to understand why these fees exist and what they entail.

First and foremost, it's important to note that not all travel agencies charge monthly fees to their agents. There are many agencies that operate on a commission-only model, where agents earn a percentage of the sales they generate. However, there are also agencies that require their agents to pay a monthly fee for various reasons. Let's dive into the concept of monthly fees for travel agents and what it means for both the agents and their clients.

One common reason why travel agencies charge monthly fees is to cover the cost of marketing and advertising. Travel agencies invest heavily in promoting their services, and these costs can add up quickly. By charging a monthly fee, agencies are able to offset some of these expenses and ensure that their agents have access to effective marketing resources. This allows agents to reach a wider audience and generate more sales, ultimately benefiting both the agency and the agents themselves.

Another reason for monthly fees is to provide ongoing support and training to travel agents. The travel industry is constantly evolving, with new destinations, travel trends, and technologies emerging all the time. In order to stay competitive and provide the best possible service, agents must stay up to date with the latest developments. Monthly fees can help agencies fund training programs, webinars, and other resources that keep their agents informed and knowledgeable. This ensures that agents are equipped to handle any questions or concerns from their clients and offer them the best travel options available.

It's also worth noting that monthly fees can vary greatly from one agency to another. Some agencies have a fixed monthly fee, while others use a tiered system based on the agent's sales volume. It's important for aspiring travel agents to carefully consider the fee structure of any agency they are considering joining to ensure that it aligns with their financial goals and expectations.

For travelers, the concept of travel agents paying monthly fees might be concerning. However, it's important to remember that these fees are not passed on to the clients directly. Travel agents earn their commission from the services they book for their clients, and this commission covers their expenses, including any monthly fees they might have to pay. Clients can still benefit from the expertise of a travel agent, without incurring any additional costs.

In conclusion, while not all travel agencies charge monthly fees to their agents, it is a common practice in the industry. These fees are often used to cover marketing and training expenses, allowing agents to provide better service to their clients. Aspiring travel agents should carefully consider the fee structure of any agency they are considering joining, while travelers can rest assured that these fees are not directly passed on to them. With a clear understanding of the concept of monthly fees for travel agents, both agents and clients can make informed decisions.

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It is not uncommon for travel agents to pay monthly fees as part of their business operations. There are several factors that contribute to this practice. In this blog post, we will discuss some of the main reasons why travel agents might be required to pay monthly fees and how they can benefit from this arrangement.

Access to booking systems and technology:

Travel agents need access to industry-specific booking systems and technology platforms to effectively serve their clients. These systems usually come with a cost, which is often passed on to the travel agent in the form of a monthly fee. These booking systems, such as Global Distribution Systems (GDS), are crucial for travel agents to efficiently search, compare, and book flights, accommodations, and other travel-related services. By paying a monthly fee, travel agents can ensure they have access to the latest technology and tools to provide their clients with the best possible service.

Marketing and advertising support:

Travel agents often rely on the support of their host agency or consortium to market and advertise their services. This support can include access to a shared marketing platform or resources, co-op advertising programs, and centralized marketing campaigns. In exchange for these services, travel agents may be required to pay a monthly fee to cover the costs associated with marketing and advertising efforts. This allows travel agents to benefit from professional marketing and advertising materials without having to bear the full cost themselves.

Administrative and operational support:

Running a travel agency involves various administrative and operational tasks, such as processing bookings, managing client accounts, and coordinating with suppliers. Some host agencies or consortia offer administrative and operational support to their travel agents, including access to back-office systems, accounting services, and customer relationship management tools. To cover the costs associated with providing these services, travel agents may be required to pay a monthly fee. This allows them to focus on serving their clients and growing their business, without having to worry about the day-to-day administrative tasks.

Training and education programs:

Continuing education and professional development are essential for travel agents to stay up-to-date with the latest industry trends, regulations, and best practices. Many host agencies and consortia offer training and education programs to their travel agents, including webinars, workshops, and online courses. These programs help travel agents improve their skills and knowledge, enabling them to better serve their clients. In order to access these training and education programs, travel agents may be required to pay a monthly fee to cover the costs associated with developing and delivering these resources.

Networking and collaboration opportunities:

Being part of a larger travel agency network or consortia provides travel agents with networking and collaboration opportunities. These networks often organize conferences, trade shows, and networking events where travel agents can connect with industry peers, suppliers, and potential clients. By paying a monthly fee to belong to these networks, travel agents can benefit from the connections and collaborations that arise from these events. This can help them expand their client base, gain valuable industry insights, and stay informed about the latest trends and developments.

In conclusion, travel agents may be required to pay monthly fees for various reasons, including access to booking systems and technology, marketing and advertising support, administrative and operational support, training and education programs, and networking and collaboration opportunities. These fees enable travel agents to access valuable resources and services that can enhance their business operations and improve their ability to serve their clients. By carefully evaluating the benefits and costs associated with these fees, travel agents can make informed decisions and choose the arrangements that best meet their needs and goals.

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Travel agents are professionals who assist individuals, families, and groups in planning and booking their travel arrangements. They often work for travel agencies that offer various services and benefits to both clients and agents themselves. One aspect that some travel agents may encounter is the requirement to pay monthly fees to maintain their membership or affiliation with a particular travel agency. While this practice is not universal, it does exist in certain cases. In this article, we will outline the pros and cons of travel agents paying monthly fees.

• Access to Exclusive Benefits: Some travel agencies provide additional benefits and resources to their agents who pay monthly fees. These benefits may include access to exclusive discounts, special offers, training programs, marketing materials, and a dedicated support team. By paying the fees, travel agents can take advantage of these additional resources to enhance their services and improve their client satisfaction.
• Enhanced Professional Development: Many travel agencies who charge monthly fees invest the revenue back into the development of their agents. This means that travel agents are provided with ongoing training and learning opportunities to stay updated on the latest industry trends, technologies, and destinations. Such professional development can help agents improve their skills, provide better customer service, and expand their knowledge base.
• Brand Recognition and Marketing Support: Travel agencies often have established brands and marketing strategies that help attract clients. By paying monthly fees, travel agents can benefit from being associated with a recognized brand and can leverage the marketing efforts of the agency for their own benefit. This can help agents generate leads, attract new clients, and increase their overall business exposure.
• Financial Burden: The most apparent con of paying monthly fees is the financial burden it may impose on travel agents, especially those who are just starting their business or who may not have a steady stream of income. Monthly fees can eat into agents' profits and make it difficult to cover other expenses such as office rent, utilities, and marketing materials. Agents should carefully evaluate the potential return on investment before committing to any monthly fee program.
• Limited Flexibility: Some travel agents may prefer the freedom to work independently or with multiple agencies without being tied down to a single agency. Paying monthly fees may restrict their opportunities and limit their ability to explore other affiliations or partnerships. Agents should consider their long-term goals and aspirations before committing to any monthly fee arrangement to ensure it aligns with their desired level of flexibility and independence.
• Lack of Guarantee: Paying monthly fees does not guarantee clients or bookings. Travel agents must still work diligently to attract and retain clients and generate sales in order to generate revenue. While some travel agencies may promise a certain level of support and leads, agents should be cautious not to rely solely on these promises and should have their own marketing and sales strategies in place.

In conclusion, the decision of whether to pay monthly fees as a travel agent depends on multiple factors including the benefits offered by the agency, the financial situation of the agent, their long-term goals, and their level of independence. While paying monthly fees can provide access to additional resources, training, and marketing support, it is essential for agents to carefully evaluate the potential return on investment and weigh the pros and cons before committing to any monthly fee program. Agents should also consider alternative options such as joining a pay-as-you-go agency or starting their own independent travel business if the monthly fee arrangement does not align with their needs and objectives.

The Option for Federal Employees to Cover Their Own Travel Costs

As a travel agent, you might be familiar with the concept of paying monthly fees. While it may have been considered the norm in the past, times have changed, and there are now alternatives available that can help you avoid these expenses. In this blog post, we will explore some of these alternatives and why they can be a better option for your business.

First and foremost, one of the most effective alternatives to paying monthly fees is joining a host agency. A host agency can provide you with various benefits, including access to their booking platform, marketing support, and extensive industry knowledge. By joining a host agency, you can tap into their resources and technology, all without having to pay any monthly fees. Instead, you may have to give the host agency a percentage of your commission for the bookings made through their platform. However, this can often be a much more cost-effective option than paying monthly fees.

Another alternative to consider is becoming an independent travel agent. By going independent, you can have complete control over your business and its finances. However, it's essential to remember that being independent also means taking on more responsibilities. You will need to handle your own marketing, bookings, and technology solutions. While this may require more effort on your part, it also means that you won't have to pay any monthly fees to a travel agency. Instead, you can invest that money into growing your business and serving your clients better.

If you're hesitant to leave your current agency or go independent, you can explore the possibility of negotiating with your agency to waive or reduce the monthly fees. More travel agencies today are open to negotiating their payment structures in order to maintain a strong agent base. It's important to have a conversation with your agency about your concerns and explore possible solutions. You never know—they might be willing to accommodate your request, especially if you are a high-producing agent.

In addition to these alternatives, it's also worth considering whether paying monthly fees is necessary for your business. With the plethora of online tools and platforms available today, you might be able to find cost-effective ways to handle your bookings, marketing, and other operational tasks. For example, you can use online travel platforms like Travelport or Sabre to book flights, hotels, and other travel services directly without the need for a travel agency. There are also numerous cost-effective marketing tools available, such as social media platforms and email marketing services, that can help you promote your business without breaking the bank.

In conclusion, paying monthly fees as a travel agent is not the only option available to you. By exploring alternatives like joining a host agency, going independent, negotiating with your existing agency, or leveraging online tools and platforms, you can find cost-effective ways to run your business without incurring monthly fees. Remember to weigh the pros and cons of each alternative and choose the one that aligns best with your business goals and objectives.

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Frequently asked questions.

Yes, it is common for travel agents to pay monthly fees. These fees are typically used to cover various operating costs, such as access to booking systems, marketing materials, and ongoing training and support from the travel agency.

By paying monthly fees, travel agents gain access to valuable resources and tools that can help them conduct their business efficiently. These may include marketing and promotional materials, educational resources, and ongoing support from the travel agency. Additionally, paying monthly fees can provide agents with credibility and access to exclusive perks and discounts.

The amount of monthly fees that travel agents pay can vary depending on the travel agency they are affiliated with. Some agencies charge a flat monthly fee, while others may have a tiered structure based on the level of support and resources provided. It is important for travel agents to carefully review the fee structure and understand what is included before committing to any monthly payments.

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Breaking Down the Pros and Cons of Using a Travel Agent

You're convinced that having a travel expert by your side will be useful. But how do you go about knowing when and how to book with them?

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Confession: I’m a big fan of travel agents (whoops, sorry, travel advisers ), even though I could technically book all my trips through websites and apps. And despite the fact that many of us might consider this industry old-fashioned and out-of-date, research shows that travelers, and millennials in particular, are once again turning to these specialists to help plow through TripAdvisor detritus. If you’re wondering: how much does a travel agent cost, and why would I book with one anyway? Read on.

How to Know If You Need a Travel Agent

Once you’ve come around to the idea of hiring a travel agent, ask these three questions before booking:

• Is this a domestic trip or one that involves traveling to a part of the world you’ve never been? If it’s the former you don’t need a travel agent.
• Can I get a better deal by using a travel agent? (This question requires you pricing out your trip with and without one.)
• Is this a big-budget, special-event kind of trip? If the answer is yes, go with a travel agent.

The Pros of Using a Travel Agent

They can find crazy deals..

This is literally their job. If they have been in the travel business for many years, they likely have supplier relationships in place that can help leverage better deals for you. Many travel agents specialize in locations (i.e., cruise vacations in Europe). Some travel agents offer package deals, with more savings passed on to you then booking the trip on your own—that is good news to your wallet.

They will be your advocate.

One of the best ways to utilize a travel agent is as an advocate should something derail on your trip. They can help you with lost luggage, in the case of natural disasters, if you get stuck in a location before your trip, etc. They are there to help you get your trip back on track.

They’ll take care of the little things.

I love my travel agent, and I love all the extras she provides when we use her services for a trip. For instance, when we traveled to the Bahamas, she made sure there was a nice bottle of champagne and strawberries in our room on our arrival, and she also upgraded our room free of charge. While this certainly is not a guarantee when you use a travel agent, there are a lot of added-value extras you can expect when you use a travel agent. Why? Because travel agents know you don’t have to use them to book your trip, and they want to say thank you.

They’re true experts.

Most travel agents have been working in the industry for years now, and it’s their job to stay on top of travel trends and upcoming hot destinations. When I spoke with my travel agent about a trip to Europe recently, she offered a few alternate destinations. I was not thinking about the destinations she suggested, but the alternatives offered great activities, culture, food, interesting boutique hotels, and more options for less money than my original destination.

They don’t usually cost extra.

It’s a myth that working with a travel agent will automatically cost you more; most get paid via commissions from the hotel or outfitter. Sure, some travel agents do charge a fee for putting together an itinerary, but most will credit you that fee if you end up booking the trip through them. Make sure you know all the potential fees before you use a travel agent, and do not hesitate to negotiate away.

The Cons of Using a Travel Agent

They’re not going to help with cheaper airfare..

Back in the day, you would use a travel agent to book every aspect of your trip. However, with so many options to find low-cost airfare, like Google Flights , Scott’s Cheap Flights , and  Skyscanner , booking your own flights is easy and cost-effective. Most travel agents cannot score discounted flights, and many travel agents will not even bother. Follow these tips on how to find the cheapest flights possible , instead.

They’re not you.

This may seem obvious, although it’s still important to consider. A travel agent not only finds you the best deals, but they also offer suggestions for activities, restaurants, and more. This is great if you’re someone who doesn’t like to research these things, but you run the risk of working with someone who doesn’t get your personal preferences (maybe they lean toward road tours rather than technical singletrack). Do your own research first, and come up with a list of activities that you want to do. Once you have that list, pass it along to your travel agent to see if they can rustle up any deals as they book.

How to Find a Great One

One of the best ways to find a reputable travel agent is to get referrals from your friends and family. Anyone that has used that travel agent for a previous trip and enjoyed their service is someone worth checking out. As with anything, I always suggest talking to at least two different travel agents to see who you feel most comfortable with. Remember, they are there to work for you.

Know your travel budget before you reach out to a travel agent. Likely, this will be the first question they ask you and will help steer them toward the best destinations for that budget. If you are traveling somewhere that’s specialized, like going on that once-in-a-lifetime African safari , find a specialist that knows that region inside and out. They will usually have the best deals and relationships with hotels and activity companies in that area.

How Much Does a Travel Agent Cost?

Usually, the cost of hiring a travel agent to organize a trip for you is fairly minimal. Many agencies charge a flat fee of around $100, and others may charge a certain small percentage of your trip. Most of their take-home profits come from the hotels, wholesalers, resorts, and businesses they work with, but be sure to as your travel agent about fees upfront and before you start working with them to plan your next dream vacation. (No one likes hidden fees and surprises.)

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Startup Costs

Let's Talk Travel Agency Fees

For what you get when you partner with us here at TPI as your travel host agency , you’d think you’d pay through the nose. The level of support alone is worth its weight in gold. For example, you’ll get access to the best travel agency marketing tools and techniques, as well as state-of-the-art travel agency software (including robust travel agency back office software technology). But we don’t believe in nickel and diming you. We believe you should keep more of your money. Technology, community, a fun, fresh vibe, exclusive supplier promotions, unparalleled marketing resources, and help 24/7 makes partnering with us the deal of the century.

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Depending on your level of commitment to us, we estimate the basic startup costs to own your own travel agency include:

• Training: $295-$895
• Host Initiation Fee: $0
• Typical Business Startup Costs: $500
• Commitment to Us as Your Host Agency (Annually): $240-$840

For a grand total of anywhere between $1234 to $2074. That’s not a ton of money to start your own business and be your own boss. But do you have what it takes to be a travel agent though?

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Frequently Asked Questions

What is a typical travel agency fee.

Travel agency fees vary. We offer multiple commission split structures so you decide how much you pay in fees and how much of your commission you keep. For example, if you choose to take home less of your commission, your fees to TPI are lower.

What is a travel agency fee?

A travel agency fee is what you pay to work with a host agency like TPI. We determine our fees based on our commission split structures. If you choose to take home less of your earned commissions, your fees are lower, and vice versa.

Does it cost money to become a travel agent?

There are some fees associated with starting your own business. While you will pay for training and general business startup costs, the cost is generally low. Plus, you’re investing in your own business and your future as your own boss! Learn how to become a travel agent today.

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How to Charge Fees as a Travel Agent

Written by: Michelle on June 28, 2023

If you’re new to the travel industry, one of the most frequently asked questions involves how travel agents get paid. Travel agents earn commission (that’s paid by the supplier) after the client has traveled. So how can you still earn money even when your clients aren’t visiting beautiful destinations?

Charging fees can provide a steady stream of income when clients aren’t traveling. Planning a trip takes time and effort – and a fee can show the value of your research and time!

Before you can decide if a fee is right for your business, there are several factors to consider.

Watch below to hear Vice President of Agent Engagement Bill Coyle’s advice for how to charge fees as a travel agent. He also shares helpful tips for implementing a fee and communicating it to your clients.

Looking for more education as a travel agent? Don’t miss our talk show KHM Today or the other videos in our Travel Agent Tips video series .

KHM Travel Group always recommends you consult a legal professional for operating your travel business.

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How Travel Agents Get Paid (Explained in Simple Terms)

How Travel Agents Get Paid

Planning a trip can be a lot of work, and it’s easy to see why people would want to hire a travel agent to help them out. Travel agents can take care of everything from booking flights and hotels to securing transportation and activities. But how do travel agents get paid?

In this article, we’ll take a look at the different ways that travel agents earn their income. We’ll also discuss the pros and cons of using a travel agent, so you can decide if it’s the right option for you.

There are three main ways that travel agents get paid:

• Commissions: Travel agents typically earn a commission from the airlines, hotels, and other travel providers that they book through. The commission is a percentage of the total cost of the trip, and it can range from 5% to 20%.
• Markups: Some travel agents mark up the prices of the travel products that they sell. This means that they charge you more than the actual cost of the trip. The markup is typically around 10%, but it can be higher or lower depending on the agent.
• Fees: Some travel agents charge a flat fee for their services. This fee can range from $50 to $200, and it typically covers the agent’s time and effort in planning and booking your trip.

Pros and Cons of Using a Travel Agent

There are both pros and cons to using a travel agent. Here are a few things to consider before you decide whether or not to use one:

• Convenience: Travel agents can take care of all the details of your trip, so you can relax and enjoy the planning process.
• Expertise: Travel agents have a lot of experience in the travel industry, and they can help you find the best deals on flights, hotels, and other travel products.
• Personalized service: Travel agents can work with you to create a custom itinerary that fits your budget and interests.
• Cost: Travel agents can be expensive, especially if you’re using a high-end agency.
• Conflicts of interest: Travel agents may be tempted to book you on flights or hotels that give them the highest commission, even if it’s not the best option for you.
• Lack of transparency: Some travel agents may not be upfront about their fees or commissions.

Whether or not you use a travel agent is a personal decision. There are pros and cons to both options, so you need to weigh them carefully before you make a decision. If you’re still not sure, you can always get quotes from a few different agents and compare them to see which one offers the best value for your money.

Travel agents are paid in a variety of ways, including commissions, fees, and salary. Commissions are the most common form of compensation, and they are paid by airlines, hotels, and other travel providers. Fees are another way that travel agents earn money, and they are charged to clients for services such as booking flights, hotels, and rental cars. Some travel agents also receive a salary, which is typically paid by a travel agency or tour operator.

In this article, we will discuss how travel agents get paid, including commissions, fees, and salary. We will also explore the different types of commissions and fees that travel agents earn, and how these payments are calculated. Finally, we will discuss the impact of commissions and fees on travel agent compensation.

Commissions

Commissions are the most common form of compensation for travel agents. They are paid by airlines, hotels, and other travel providers when a travel agent books a reservation for a client. The amount of commission that a travel agent earns is typically based on the cost of the trip. For example, a travel agent might earn a commission of 10% on the cost of a flight or a hotel room.

There are a few different types of commissions that travel agents earn. Base commissions are the most common type, and they are paid on the sale of a travel product or service. Incremental commissions are paid on top of base commissions, and they are typically based on the number of additional products or services that a travel agent sells. Override commissions are paid to travel agents who refer clients to other travel agents.

Commissions are typically calculated by the travel provider. The travel provider will send the travel agent a commission statement that shows the amount of commissions that were earned on each booking. The travel agent can then deposit the commissions into their bank account.

In addition to commissions, travel agents can also earn money by charging fees to their clients. These fees can be charged for a variety of services, such as booking flights, hotels, and rental cars. The amount of the fee will vary depending on the service that is being provided.

There are a few different types of fees that travel agents charge. Booking fees are charged when a travel agent books a reservation for a client. Service fees are charged for services that a travel agent provides, such as providing advice or assistance with a booking. Cancellation fees are charged when a client cancels a reservation.

Travel agents can charge fees to their clients in a variety of ways. They can charge a flat fee for each service that they provide, or they can charge a percentage of the cost of the trip. The travel agent can also choose to waive fees for certain clients, such as those who are repeat customers or those who book large trips.

Some travel agents receive a salary rather than commissions or fees. This is typically the case for travel agents who work for a travel agency or tour operator. The salary will vary depending on the company and the level of experience of the travel agent.

Travel agents who receive a salary are typically responsible for generating their own leads and booking their own clients. They may also be required to sell other products or services, such as insurance or travel accessories.

Impact of commissions and fees on travel agent compensation

The amount of commissions and fees that a travel agent earns can have a significant impact on their compensation. Travel agents who earn a high percentage of commissions on their bookings can make a good living. However, travel agents who earn a low percentage of commissions or who do not generate enough business may not be able to make a living wage.

The impact of commissions and fees on travel agent compensation can also vary depending on the type of travel agent. Travel agents who work for a travel agency or tour operator typically earn a salary, which is not affected by the amount of commissions or fees that they earn. However, independent travel agents who work on commission typically earn a higher percentage of commissions than those who work for a travel agency or tour operator.

Travel agents are paid in a variety of ways, including commissions, fees, and salary. The amount of commissions and fees that a travel agent earns can have a significant impact on their compensation. Travel agents who earn a high percentage of commissions on their bookings can make a good living. However, travel agents who earn a low percentage of commissions or who do not generate enough business may not be able to make a living wage.

1. Commissions

How travel agents earn commissions from airlines, hotels, and other travel providers

Travel agents earn commissions from airlines, hotels, and other travel providers when they book a reservation for a client. The amount of commission that a travel agent earns is typically based on the cost of the trip. For example, a travel agent might earn a commission of 10% on the cost

3. Other Sources of Revenue

In addition to commissions from booking travel, travel agents generate revenue from a variety of other sources, including:

• Insurance sales: Travel agents often earn commissions on insurance policies that they sell to their clients. These policies can include trip cancellation insurance, medical insurance, and baggage insurance.
• Marketing: Travel agents can earn revenue by marketing their services to potential clients. This can be done through online advertising, social media, and offline marketing methods, such as print advertising and direct mail.
• Consulting: Travel agents can also earn revenue by providing consulting services to their clients. This can include helping clients plan their trips, choose the right destinations, and book the best deals.

The importance of diversification

It is important for travel agents to diversify their revenue streams in order to protect themselves from fluctuations in the travel industry. For example, if commissions from travel bookings decline, travel agents can still generate revenue from insurance sales, marketing, and consulting.

4. The Future of Travel Agent Compensation

The travel industry is constantly changing, and the way that travel agents are compensated is no exception. In recent years, technology has had a major impact on the travel industry, and this has led to changes in the way that travel agents are paid.

• The impact of technology on travel agent compensation

Technology has made it easier for consumers to book their own travel arrangements. This has led to a decline in the number of travel agents, and it has also put pressure on travel agents to reduce their commissions.

In order to compete with online travel agencies, travel agents are increasingly using technology to provide their services. For example, travel agents can use online booking tools to help their clients book their travel arrangements. They can also use social media to market their services and to connect with potential clients.

• The challenges and opportunities facing travel agents in the future

The travel industry is facing a number of challenges, including:

• The rise of online travel agencies: Online travel agencies have made it easier for consumers to book their own travel arrangements, which has led to a decline in the number of travel agents.
• The changing needs of consumers: The needs of consumers are changing, and travel agents need to adapt their services in order to meet these changing needs.
• The impact of technology: Technology is changing the way that travel agents do business, and travel agents need to embrace technology in order to remain competitive.

Despite these challenges, there are also a number of opportunities for travel agents in the future. These include:

• The growth of the travel industry: The travel industry is expected to continue to grow in the coming years, which will create new opportunities for travel agents.
• The increasing demand for personalized travel services: Consumers are increasingly looking for personalized travel services, and travel agents are well-positioned to provide these services.
• The growth of the luxury travel market: The luxury travel market is growing, and travel agents can tap into this market by providing high-end travel services.

The travel agent industry is changing rapidly, and the way that travel agents are compensated is changing with it. Travel agents need to be aware of these changes and adapt their businesses accordingly in order to remain competitive.

How do travel agents get paid?

Travel agents typically earn a commission on the sale of travel products, such as flights, hotels, and car rentals. The commission is typically a percentage of the total cost of the sale, and it is paid by the travel supplier (i.e., the airline, hotel, or car rental company).

How much do travel agents get paid?

The commission that travel agents earn varies depending on the type of travel product sold and the travel supplier. In general, commissions range from 5% to 15% of the total cost of the sale.

Do travel agents get paid if a customer cancels their trip?

Yes, travel agents typically get paid a commission even if a customer cancels their trip. However, the amount of the commission may be reduced or forfeited if the cancellation is made close to the departure date.

What are the benefits of using a travel agent?

There are many benefits to using a travel agent, including:

• Expert advice: Travel agents can provide expert advice on the best destinations, travel deals, and ways to save money.
• Convenience: Travel agents can handle all of the details of your trip, from booking flights and hotels to arranging transportation and activities.
• Peace of mind: Travel agents can help you avoid problems and ensure that your trip goes smoothly.

How do I find a good travel agent?

There are a few things you can do to find a good travel agent, including:

• Ask for recommendations from friends or family who have used a travel agent.
• Read online reviews of travel agents.
• Contact a few different travel agents and interview them to see if they are a good fit for you.

What questions should I ask a travel agent before booking a trip?

There are a few important questions you should ask a travel agent before booking a trip, including:

• What types of travel products do you specialize in?
• How long have you been in the business?
• What are your commission rates?
• What is your cancellation policy?
• What is your customer service policy?

By asking these questions, you can make sure that you are working with a reputable travel agent who can help you plan a successful trip.

there are many different ways that travel agents get paid. The most common is through commissions, which are a percentage of the total cost of the trip. Other methods of compensation include flat fees, rebates, and referral fees. The best way for a travel agent to get paid is to find a commission structure that works for them and their clients. By understanding the different ways that travel agents get paid, consumers can make informed decisions about who they use to book their travel.

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The 2020 Independent Travel Agent Fee Report [+Infographic]

Have you heard? HAR’s 2020 Fee Survey results are in! With over 1,000 survey responses, HAR amassed a mountain of data. So much so, that we’re able to parse out results for hosted travel agents and independent travel agents.

Wait a minute. Aren’t hosted agents independent contractors? Well, yes. It gets so complicated! But for the purposes of this article, when we say “independent travel agents” we’re referring to agents who have their own accreditation.

In 2020, 16% of our respondents reported they were independent. Here’s a bird’s-eye view of this segment of travel agents:

Did this whet your appetite? I sure hope so, because a smorgasbord of data awaits! And if video is your preferred way to intake information, we've got that for you too:

But before we dive in, I want to emphasize that all this data was collected pre-coronavirus. We’re not sure how COVID-19 will impact fees, but we’ll find out with next year’s survey.

⭐️ HAR ARTICLE HIGHLIGHTS: ⭐️

• Fee Survey Primer

How Many Independent Agents Charge Fees?

• What Service Fees do Independent Agents Charge (and How Much?)
• What Consultation Fees do Independent Agents Charge (and How Much?)
• Agency Models of Independent Agents, and How it Relates to Fees

Experience and Likelihood to Charge Fees

Independent agents who do not charge fees.

• Independent Fee Survey Takeaways

A Glossary of Terms

Infographic: independent travel agent fee report overview.

Here’s the visual. It’s really pretty, but we don’t recommend printing it out unless you want to wallpaper your entire house or to use it as gift wrap (a whole lotta great data = a whole lotta paper).

You may notice that trends among independent agents are wildly different than those of hosted travel agents. How would you know such a thing? From our recently-published results, “ The 2020 Hosted Travel Agent Fee Report .”

HAR’s Fee Survey Primer

Our survey explored every nook and cranny of fee charging practices. But before we dive into results, let’s make sure we’re all on the same page when it comes to definitions.

In our survey, we explored two types of fees:

• Service Fees: Typically flat fees per transaction/ segment of a trip (i.e. car, rail, air, hotel, change fee etc.).
• Consultation Fees: Commonly pertain to time/expertise used to plan, research, or book a trip and/or support clients during their trip.

Additionally, in this report we’re going to throw around words like median, mode, and interquartile range (the scariest one, in my opinion).

I understand you probably didn’t get into the travel industry because of your love for statistics, or for an added edge in your Scrabble game. But don’t worry, all you need to do is click on the word and you’ll be taken to a short lay-person-friendly definition. You can try it right here! Interquartile range .

Okay, back to our regular programming.

Okay, so the intro had a spoiler: 75% of independent travel agents reported charging fees in 2020. This is a 4% increase from our last fee survey in 2018, when 71% of independent agents reported charging a fee. 1

Among independent agents who charged a fee:

These results were close to our prior survey, with a 5% increase in the likelihood to charge service fees only, no increase in the likelihood to charge consultation fees only, and a 1% decrease in the likelihood to charge both a service fee and consultation fee.

Independent travel agents were much more likely to charge fees than their hosted counterparts (75% compared to 52%). The “both” category (charging a service fee and consultation fee) experienced the most significant difference, 31% among independent agents, compared to only 16% of hosted agents who charged both a service and consultation fee.

While independent agents were much more likely to charge fees than their hosted counterparts overall, the growth in percentage of agents who reported charging fees in 2020 was equitable, with a 4% increase among independent agents reporting they charged fees and a slightly higher 5% increase among hosted agents agents.

Why Do Independent Agents Charge Fees?

This year was the first year we asked why travel agents charged fees. The top 4 reasons to charge fees in 2020 were as follows:

Independent agents’ primary motivation to charge fees was to value their time and expertise, leading the 2nd most common response by 55%. These top 4 responses are identical to hosted responses in rank.

If you’re curious to dig into why you might consider charging fees, we have a ton of resources for you:

• Listen to our Travel Agent Chatter podcast to hear how seasoned destination specialists Madeline Jhawar , owner of Italy Beyond the Obvious, and Andres Zuleta , owner of Boutique Japan. Both agents earn a majority of their income from fees rather than commissions.
• Do you need a little extra encouragement to charge fees? Check out HAR’s guide to charging fees here. ]
• Want to refresh the fee-charging practices you already have in place? Check out these creative fee strategies .

What Service Fees Do Independent Travel Agents Charge (and How Much?)

Overall, 64% of all independent agents charged a service fee 2 . This is a 4% increase from our prior results.

When homing in on the segment of independent agents who reported charging fees, 85% reported charging a service fee. Below is a breakdown of the types of bookings for which independent agents charged, the median fee, and the interquartile range (IQ range):

Fewer independent agents charged for FITs in 2020 than in 2018 (40% compared to 54%). Cruises also experienced a double-digit drop in response rate (an 11% decrease), with only 13% independent agents charging for that booking type in 2020. 3

Alternately, independent agents reported charging fees for international air at a much higher rate this year, responding at a 24% higher reporting rate in 2020 compared to 2018 (72% compared to 48% respectively).

In the top five booking categories, there was an 8% increase in fees for rail tickets and a 7% increase for frequent flyer fees 4 .

Compared to hosted agents, independent agents were the same or more likely to charge for services in every category. (See infographic for more details)

What Consultation Fees Do Independent Agents Charge (and How Much?)

For this section, we continue to focus on independent agents who reported charging fees. Among this segment, 42% reported charging consultation fees. This is a 1% decrease compared to the same segment in 2018.

Here’s a breakdown of consultation fees with the percentage of agents that reported charging that type of fee. Where we had enough data, we also included the median fee and the range of fees charged:

Flat fees were on trend with 2018 results with a modest 1% increase in those that charge a flat fee in 2020. Among those who charged flat fees:

• 96% charged a one-time flat fee
• 4% charged a flat fee per day

Plan-to-Go Fees

This year HAR added a “plan-to-go” fee option to our survey in addition to our usual suspects listed above.

A plan-to-go fee is an upfront payment agents require from clients in order to render their services. The plan-to-go fee—in full or in part—is then applied to the booking if the traveler decides to book through the agent.

Of the independent agents who charge fees, 35% reported charging a plan-to-go fee. Among those who charged this fee:

• 60% applied the entire fee to the booking
• 20% applied a certain dollar amount to the booking
• 20% applied a certain percentage to the booking

Agency Models of Independent Agents

“All-Inclusive” and “FIT” were the most common niches among independent respondents

Independent travel agents varied in how they conducted business. Here’s a big-picture on the business models of independent agents including location, hours worked, niche and how these factors impacted their likelihood to charge fees:

Home Based vs Storefront

Independent agents were much more likely to work at a storefront than their hosted counterparts: While IA only accounted for 16% of survey respondents, they accounted for 69% of the total storefronts in our survey.

Among independent agents only, 36% were storefront and 64% were home based. This is a 6% increase in storefront agencies from 2018 results.

Independent agents who worked at storefront agencies were also much more likely to charge fees than their home based peers: 89% compared to 68%. This trend is consistent with hosted results as well in 2020.

It's also worth noting that 69% of all storefront agencies were attributed to independent travel agents in this year’s survey. Additionally, independent storefront agencies had significantly higher median experience that hosted storefront agencies, 28 years compared to 15.5 respectively. (We'll chat on how experience alone impacts fees soon!)

Corporate vs Leisure

In 2020, 9% of independent agents who completed the survey were corporate agents. This is a 7% increase from 2018, when only 2% of independent agents were corporate.

Corporate agents were more likely to charge fees than their leisure counterparts, 80% compared to 75% respectively.

While independent agents were more likely to charge fees than hosted agents overall, corporate independent agents departed from this trend:

However, independent corporate agents departed from overall fee-charging trends, with fewer from this segment charging fees compared to their hosted counterparts: 80% compared to 92% of hosted corporate agents.

Full Time vs. Part Time

84% of independent agents worked full time (30+ hours). This is much higher than hosted agents, where only 59% reported working full time.

Independent travel agents were rewarded with a greater number of clients: In 2020, agents’ time investment had a direct relationship to the number of clients. 62% of independent travel agents reported having 100+ clients, whereas only 29% of hosted agents reported the same in 2020.

Fee Practices According to Niche

The top 5 niches among independent agents were:

• All-Inclusive
• Ocean Cruises
• Weddings/ Honeymoons

Three of these niches—FIT, Groups and Weddings/Honeymoons—were also among the top 5 niches to charge a fee. Below is a list of niches most likely to charge a fee and the response rate of independent agents who reported charging 5 :

Weddings/ Honeymoons, is new to the top 5 niches most likely to charge, with many more independent agents reporting charging a fee in 2020 than 2018 (91% compared to 53%). (See our full infographic for complete details on niche and likelihood to charge fees.)

ASTA Membership & Likelihood to Charge Fees

Industry engagement had a strong correlation to charging fees. 74% of independent agents reported belonging to a travel association, with the majority belonging to ASTA and/or ASTA-SBN (52%).

Independent agents who belonged to ASTA and/or ASTA-SBN were more likely to charge fees, 76% compared to 52% overall.

Independent agents reported a significantly higher median experience in 2020 than in 2018, 19 years at current compared to 13.5. Furthermore, independent agents also had significantly more experience than their hosted counterparts, who only reported a median 5 years experience.

The median age among independent agents in 2020 was 59, in comparison to their hosted counterparts whose median age was 54 years.

Following trends across all travel agent segments, new independent agents were less likely to charge a fee: only 68% of new independent agents charged fees 6 compared to 76% of experienced agents.

Below, the chart compares experience to the likelihood to charge fees for independent agents. These trends are similar to previous years’ results.

25% of independent agents reported they did not charge fees. Among this segment, here are the reasons they reported charging no fees 2020, ranked below:

Client retention was the primary reason independent agents chose not to charge fees in 2020 (compared to “I might not be able to attract new clients” in 2018). Another notable change from 2018’s results is that in 2020 independent agents were much less concerned about lack of experience: While that reply ranked 6th in 2020, it ranked 2nd in 2018.

It’s also interesting to note that among all respondents (hosted and independent agents) who did not charge fees, only 9% were independent agents.

Do Independent Agents Plan to Charge Fees?

This was the first year we asked about future prospects of charging fees. When asked if they planned to charge fees in the next 12 months, only 8% of independent agents replied “yes,” 46% replied “maybe,” and 46% replied “no.”

While the trend is similar to hosted agents, independent agents were less likely to consider charging fees in the next 12 months.

HAR had a lot of help in drawing agents to our survey, and we couldn’t have provided this data without them. Who are these good samaritans of the travel industry?

• Nexion Travel Group
• Oasis Travel Network
• Travel Planners International
• Travel Quest Network
• Uniglobe Travel Center
• Outside Agents

Further Resources

Stay tuned because there is a heckuva lot more information to come, including a report that digs into the relationship between demographics and charging fees! We'll keep you posted!

• Interquartile Range (IQ): A typical "range" shows us the lowest and highest fee. But the interquartile range helps us remove outliers in order to get a clearer picture of moderate fee-charging practices. This isn’t to discount your fee strategy if you charge $1,000 for fee for international air, or if you only charge $2 to grandma Matilda because she pays you (literally) in dimes. It’s just to help give a clearer picture of what the “average” hosted agent is charging. For those really nerding out, the Interquartile Range measures the range between the 25th and 75th% percentile. This means the range excludes the data from the lowest 25% and the highest 25%, eliminating the lower and upper outliers and offering a picture of more moderate fee charging practices.
• Median: The median is the middle value in the set of numbers. (That’s right, the middle child of data!) We used the median value to determine age and years of experience. This helped us get a clearer picture of the “average” agent, by eliminating outliers that skew the data.
• Median Range: When we offer a median range the numbers reflect the spread between the most common lowest fee and the most common highest fee reported by our respondents in our survey.
• Mode: The mode is the number that appears most often in a set of numbers. For our purposes, it means that it was the most frequently-occurring response among travel agents who answered the question. We used mode to determine the most common amount charged for certain service fees, in order to give a clearer picture of what the “typical” agent is most likely to charge.
• Why no 2019 results? We conducted our 2018 at the end of year and published the results early 2019. After that, we modified our survey schedule, releasing it in Jan. 2020 rather than late 2019 ↩
• Of those, 49% charged both a service fee and consultation fee ↩
• Four additional services experienced a decline in response rate in 2020: Exchanges, 3% drop; Refunds, 6% drop; Special Coupons and Shore Excursions, 1% drop. ↩
• The remaining categories—accommodation only, car only, cancellations, and ancillary services—experienced a higher response rate for fee charges in 2020 compared to 2018. Tour packages were the same in 2020 as in 2018 ↩
• River Cruise and Adventure Travel ranked 2nd and 3rd respectively, but we did not have enough data on those specific segments ↩
• We consider “new agents” those with fewer than 3 years experience ↩

About the Author

Mary Stein has been working as a writer and editor for Host Agency Reviews since 2016. She loves supporting travel advisors on their entrepreneurial journey and is inspired by their passion, tenacity, and creativity. Mary is also a mom, dog lover, fiction writer, hiker, and a Great British Bake Off superfan.

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Bon Vivant Copy

Copywriting For Travel Agents

How to Become a Travel Agent: The REAL Start-Up Costs

By Emily Matras

So you want to be a travel agent. It sounds like a total dream job, right? And you’ve heard that all you need is a laptop, a love of travel, and passion to get started!

Well … not so fast. It’s true that becoming a travel agent has a fairly low barrier to entry. You don’t need a special degree, and yes, you can work from home in your slippers 😉

But that doesn’t mean becoming a travel agent doesn’t require an investment, both in terms of your time and your money.

The truth is, when you become a travel agent, you become an entrepreneur . Creating your own business isn’t easy! But when done right, it can be so rewarding … you get to create the flexible lifestyle of your dreams, share your passion with others (and make their dreams come true), and pocket some serious moola. But to be successful in this business, you have to treat it like a business. Before you jump in, let’s get real about how much it really costs to become a travel agent.

How to Become a Travel Agent: The Real Start-Up Costs

Do you really want to know how to become a travel agent? Here’s what you need to get started a travel pro (a laptop and a dream not included):

1. A website:

Unless you’re working out of a storefront agency — which is pretty unlikely these days — your website IS your storefront.

And let’s be real: If you did have a brick and mortar agency, would you ever claim that you were “open for business” if you didn’t have any signage out front, your office lights were flickering, and the front door’s knob was broken? No one would know how to get in … which wouldn’t really matter, since no one would want to.

Not having a professional website as a travel agent sends the same message. Without a website (or a website that doesn’t look professional), your travel business just looks sketchy. Plus, your website is your marketing home base — it’s where you establish your unique value, and it’s where you control the message (you can’t say the same about social media). As the foundational piece of your travel agent marketing, a professional website is a must even for new agents.

The good news? “Professional website” doesn’t have to cost you your life savings. Still, I highly recommend working with a well-qualified designer. To save money, you may be able to use a template and get a designer to create a “semi-custom” website for you. And by the way, the free website that your host agency provides? Chances are, it’s not very good … and not very professional. I’d recommend investing in your own. Remember, your travel agent website should sale YOUR expertise — not suppliers. (And btw, if you don’t know what a host agency is, hang tight — I’ll tell you in a sec).

• Low-range cost: $100-300 for a template (that you’d probably have to implement yourself)
• Mid-range cost: $1500-2500 for a semi-custom site by a designer
• High-range cost: $4000+ for a custom, completely branded site with customized interior pages

2. Professional website copy:

Okay, you’ve got a template or web designer in mind … you’re well on your way to your very own travel agent website!

Woah. Not so fast. You may be forgetting the most important part of your website: the copy. I.E. The words on your webpage! Without them, you’ve just got an online collection of travel photos. And while they may be pretty, they’re not going to get you new travel clients.

I find that many travel agents dive into their new websites thinking they’ll just write their own copy. But then the web designer asks for the copy … and before they know it, a whole six months — or even a year! — has gone by. A severe case of writer’s block hits and they just totally stall on writing their website.

Why is it so hard for them to write their travel agent website copy? Well, for a lot of reasons — but I think the biggie is simply that it’s really hard to write about yourself. You’re not sure that you can be objective about who you are and what kind of amazing service you offer … so you might undersell yourself. Or you might dive into writing your website copy by telling your entire life’s story, but then you start to wonder, “is this all too much?” (Hint: it probably is).

With the right words targeted to the right audience, your website could be your biggest sales tool. That’s why I recommend you work with someone who is not only a “good writer,” but a strategic marketer who knows how to position your travel business as THE solution to your ideal clients’ travel woes.

Obviously, it’s not a surprise that I’m recommending you work with a pro here, since I’m a professional copywriter myself! Though if you do choose to go the DIY route, please think strategically about your copy. BEFORE you even start writing, you should:

Research your audience …

Research your competitors …

And decide what the “point” of each web page will be. What do you want your web visitor to do after reading your web page? You’ve gotta know this before you start writing!

• Low-range cost: $150-250 for a copy critique call to make sure you’re on the right track with the copy you’ve written
• Mid-range cost: $1000-2000 for custom, researched copy for your core web pages, like home, about, and services pages
• High-range cost: $2200+ for complete copy, including all interior pages like destination spotlights, IC bios, etc.

[Drawing a blank when it comes to what to write on your website?  CLICK HERE  to get your Free Travel Agent Website Checklist]

3. professional headshots:.

You want to attract travel clients that value expertise? Then you’ve got to look like an expert. That starts with having PROFESSIONAL photos of you on your website. Not some iPhone outtakes snapped by your cousin, who’s so good at selfies.

I know, I know. So many of us hate having our pictures taken! But this is worth it. Sharing travel dreams and desires with you — not to mention handing over credit card details — takes a lot of trust on the part of your clients. Having a professional headshot helps establish you as a trustworthy advisor who takes your travel business seriously.

• Low-range cost: approx. $100-200 for 1-2 headshots
• Mid-range cost: $250-450 for a set of headshots
• High-range cost: $500-1000+ for full photoshoot, on-location with multiple outfit changes

Oh, you thought we were done with all your start-up marketing needs? Nope! You still need a logo, that visual representation of your travel biz to tie it all together. Some people think that if they hire a web designer to create a website, that will include the logo — but that’s often not the case. Read any website package details carefully to see if branding is included.

If it’s not, I think this is the one start-up cost you can get away with relatively cheaply. Sites like Fiverr and 99 Designs are teeming with freelance designers offering up their services for less than 300 bucks (often less than $100 on Fiverr). Yes, it’s a bit of a pain to find the gems on these sites, but it will save you a bit. You can always upgrade your logo in a year or two, without having to totally re-design your online presence.

• Low-range cost: $20-50 on a site like Fiverr
• Mid-range cost: approx. $300 from a designer or on a site like 99 Designs
• High-range cost: $700+ for complete branding from a design pro

5. A host agency:

No man is an island. That goes for travel agents! The vast majority of agents belong to host agencies, which offer back office support and negotiated commission rates with suppliers. In exchange, agents typically pay a monthly and/or yearly fee plus a commission split with the host agency. A great place to do host agency shopping is at Host Agency Reviews . (Pssttt, agents who’ve been around the block — are you a fan of your current host agency? Share your recommendations in the comments below!).

And by the way, be wary of host agencies that put more of a premium on recruiting other agents than actually selling travel. Those aren’t host agencies … they’re pyramid schemes.

• Cost: varies widely — and you’ll also want to take into account how much of a commission split the host agency requires

6. Licensing fees:

This is ABOVE the typical fees you’ll need to pay to form any sort of small business. A handful of states require travel agents to obtain a seller of travel license before they can sell travel. Some of these states require this special license even if the agent doesn’t reside in the state, but serves clients who live there. That’s pretty common when you’re not a brick and mortar travel agency — you have clients all across the U.S.! Be sure to factor these fees into the cost of becoming a travel agent.

• Cost: varies by state, but ranges from $15 (Iowa) to $300 (Florida)

7. Community:

The life of a travel entrepreneur can get pretty lonely — and confusing. That’s why finding yourself a community, whether virtual or IRL (that’s “in real life” in internet speak) — is so important for your success. A place you can go to get feedback on your marketing ideas, solicit honest opinions on travel suppliers, and just vent when you need to (or celebrate your business wins!).

• Low-range cost: Free (like free Facebook groups)
• Mid-range cost: $200-500 — the cost for community membership programs or the cost to attend industry events
• High-range cost: $2000 — group coaching programs

There are, thankfully, soooo many virtual communities for entrepreneurs these days — plus a handful just for travel pros. I’ll quickly plug the Global Institute for Travel Entrepreneurs (GIFTE), a marketing and business membership community for travel entrepreneurs at all stages of business. I actually got my start working in the travel industry as GIFTE’s marketing associate several years ago! Check them out, and if you know of any other supportive groups — or any other resources for those just starting in the industry — please share them in the comments below!

[FREE CHECKLIST] Diagnose Your Website Woes Instantly

Start writing a better, client-attracting website today with this free travel agent website checklist.  You’ll get:

-        A 16-point checklist on what you NEED to include on your website's most important pages

-        Easy-to-understand examples (plus — examples of what  not  to write)

-        Copywriting ninja secrets that reveal how to turn your story into compelling, client-attracting content

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About Emily Matras

I help travel agents build profitable, sustainable businesses through strategic copy and content that cuts to the heart of their ideal clients' desires. The right words get the BEST clients.

Reader Interactions

October 2, 2017 at 11:24 am

Excellent overview!

October 2, 2017 at 1:44 pm

Thank you, Pam!

October 2, 2017 at 4:00 pm

This is great information. I think you nailed it just about on every point.

October 2, 2017 at 6:32 pm

Thanks, Stephenie! Appreciate you chiming in!

January 19, 2018 at 3:51 pm

Very informative!

December 7, 2018 at 3:59 pm

My teacher in the classroom spoked today that to become a travel agent or to start a tour operator business , one just need only a laptop with internet access. I am very excited to start my own business. Though i am very young only 20 years old, doing my undergraduate from Banaras Hindu University, varanasi, INDIA. While surfing on internet i get to read yours. You are really a master player of this. I want you to help me build profitable, sustainable businesses. I want you to be my mentor. Looking forward to hear from you soon.

December 10, 2018 at 10:00 am

Hi Ranvijay! While being a travel agent or tour operator does have a pretty low barrier to entry, I do think you need a bit more than a laptop to make it work. I’m glad to hear you are interested in joining the industry! Definitely take a look at the blog posts I have here, I cover a lot about marketing for travel agents. You may also be interested in checking out an organization called the Global Institute for Travel Entrepreneurs — they cover a lot of business growth issues that apply to travel agents and tour operators. Good luck!

July 31, 2019 at 3:22 pm

Enjoyed reading the overview and gained a much better understanding of what it takes to become an independent travel agent. Thank you!

July 31, 2019 at 4:20 pm

Glad you find it helpful, Barbara! Good luck on your travel agent journey!

September 20, 2019 at 1:26 am

GIFTE is closed to new members. Any other suggestions of a group that can help?

September 20, 2019 at 10:33 am

Hi Mark!I’m not familiar with other paid memberships, but there are a few free resources/communities worth checking out. Travel Geniuses has a great podcast just for travel pros, as well as a free FB group: https://www.facebook.com/groups/TravelGeniuses/ .

Travel Pro Theory also has a podcast for travel agents, and they’re really good about talking about the business side of things, like systems, charging fees, client expectations, and the like. TPT also has templates and coaching calls for agents, and they’re pretty active on Instagram if that’s your thing. https://www.travelprotheory.com/

I’ve asked GIFTE when they plan on opening up membership again, and I’ll update you when I find out!

September 23, 2019 at 2:30 pm

Also, I got in touch with GIFTE and they just said they’re accepting new members for a very limited time right now. If you’re interested, you can use this link to join (I think they’re leaving membership open just for the next couple of days): http://www.GIFTEoffer.com

October 15, 2019 at 2:28 pm

Thank You, just was are to the point!

August 21, 2020 at 11:15 am

I am doing some research on potential of becoming a travel agent. I am seeing about “Hosting” – I have a colleague is asking me to contract with his company and profit 40% of my revenue. would that be considering “Pyramid? Much appreciate in advance with your response

August 21, 2020 at 11:35 am

Hi Charleen! I don’t think that commission split means it’s necessarily a pyramid scheme, but I have a feeling you could find a more favorable commission split elsewhere. I encourage you to check out the host agencies featured and reviewed at HostAgencyReviews.com. I think a common split for brand new agents at many reputable host agencies is 70/30.

February 9, 2021 at 10:52 pm

It is one emphatic blog and much better information shared for your knowledge of what it costs to start a profitable and sustainable travel agency business. What else to worry about investments when there are opportunities for access to the free demo, free tools, and free upgrades on every requirement of a travel agency! Start your dream business now with the least investment you afford. Visit us, and let’s get real about how your travel agency grow to work at the least expense. Get ready to explore your travel agent journey!

September 22, 2021 at 11:03 am

Love your blog! I want to open a travel agency as well, how’ever waiting for PANDEMIC to be over.

You think it’s a good idea to start-up in PANDEMIC?

October 19, 2021 at 7:45 am

quality work

July 30, 2023 at 12:10 am

Good information. I am an independent travel agent. My host agency is Archer Travel Services. And Evolution Travel is the support & training venue. I love, Love, LOVE what I do & I love the companies I work with. I couldn’t ask for a better host agency. And Evolution provides top-notch training & support. If anyone is interested in finding out more about owning your own travel agency while using/having a host agency, please feel free to contact me. My Facebook page is DeGood Travels, you can fill out an inquiry form & I will contact you with the answers to your questions or more information (whichever you ask for). Also, my name is Robin DeGood. Oh!!! Also,,,,, being a travel advisor/agent has MANY PERKS ranging from discounted to even free travel at times. I have traveled more in the past year than I have in the past 6. I’m 3 cruises in already this year & 2 I only paid taxes & port fees on, the other was completely no cost to me. You can attend familiarization trips to resorts & earn cruises, amusement park passes, etc……. Sooooo many perks to being a travel agent. And being a small business owner & working remotely from your home merits many, many tax write-offs. It has been a complete win for me. Again, I totally Love what I do!! Contact me today for more information.

December 4, 2023 at 11:29 pm

Thank you, this information is very helpful.

December 23, 2023 at 9:09 am

I am intrigued by the insights into the costs of becoming a travel agent. If you were considering a career change, what factors would influence your decision to invest in becoming a travel agent?

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Table of Contents

How much does a travel agent cost?

Do travel agents get discounts on flights, how can a travel agent help me, smart money move: book with the right credit card, how do i find a good travel agent.

With a few keystrokes, you can find cheap travel deals on the web. But travel agents can do that and more.

Often, travel agents receive deals directly from hotels and tour operators that you may not have access to. They also have contacts with resorts and hotels, so they can bargain for better deals. But just how much do travel agents cost? Some people assume that travel agents are expensive, which may keep them from using their services. However, that's not necessarily true.

Regardless if you go with a travel agent or plan on your own, it can be a smart money move to book with a credit card thats earns rewards on your bookings and helps you avoid foreign transaction fees if you end up traveling abroad.

The cost of using a travel agent is generally marginal, and often, they won't charge you at all. Much of their money comes from commissions the hotels and wholesalers pay them. Before you decide to book with a travel agent, inquire whether or not they charge fees.

Also, if you’ve booked a trip with a travel agent and for whatever reason need to cancel, they might be able to help get the refund more directly.

» Learn more: How to become a travel agent

Generally not, and especially not for short distances. For the most part, any discount you'd get from using a travel agent would be for a combined package. Still, it never hurts to ask if your travel agent can get you a deal on your flight.

If you're traveling internationally — especially to a country you've never visited — a travel agent can be a useful resource in helping you plan your trip. They can manage all of your booking needs, which can be easier than juggling a long itinerary that includes flights, hotels and excursions on your own.

Group travel is another common situation that can benefit from an agent's assistance. Coordinating bookings across multiple parties can get confusing. A travel agent can keep things organized, negotiate with services and personally work out any complications that may arise. Rather than trying to reserve rooms in the same hotels and seats on the same flights with multiple credit cards and names, let a travel agent do that work.

Travel agents can also be helpful by providing destination advice. Many specialize in particular destinations and can offer insight as to how you should structure your visit. Agents can direct you to the services, facilities and entertainment that best align with your interests and needs.

» Learn more: Other things a travel agent can do that a search engine can't

Whether you decide to use a travel agent to book your trip (i.e. flights, accommodations, excursions, cruises, car rentals, etc.) or plan the whole trip on your own, consider what credit card makes the most sense for your vacation.

If you're going abroad, use a card that waives foreign transaction fees so that you can avoid those fees. Also consider credit cards that include complimentary travel insurance so that you can be protected on your trip if things go awry.

Here is a sampling of cards that include travel insurance and also waive foreign transaction fees. These cards also earn rewards on travel, which you can redeem in various ways.

on Chase's website

on American Express' website

• 5 points per $1 on travel booked through Chase.

• 3 points per $1 on dining (including eligible delivery services and takeout), select streaming services and online grocery purchases (not including Target, Walmart and wholesale clubs).

• 2 points per $1 on other travel.

• 1 point per $1 on other purchases.

• 10 points per $1 on Chase Dining, hotel stays and car rentals purchased through Chase.

• 5 points per $1 on air travel purchased through Chase.

• 3 points per $1 on other travel and dining not booked with Chase.

• 5 points per $1 on flights booked directly with airlines or with American Express Travel, on up to $500,000 spent per year.

• 5 points per $1 on prepaid hotels booked with American Express Travel.

• 1 point per $1 on other eligible purchases.

Terms apply.

• Trip delay: Up to $500 per ticket for delays more than 12 hours.

• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

• Travel accident: Up to $500,000.

• Rental car insurance: Up to $75,000.

• Trip delay: Up to $500 per ticket for delays more than 6 hours.

• Travel accident: Up to $1 million.

• Rental car insurance: Up to the actual cash value of the car.

• Trip delay: Up to $500 per trip for delays more than 6 hours.

• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

The cards listed above all carry annual fees, especially given all the perks they provide.

If you don't care about the perks listed and simply want a card with no annual fee that waives foreign transaction fees, check out this list of options .

Several websites can help you track down and contact suitable travel agents. TravelSense.org , part of the American Society of Travel Advisors, allows you to search by some useful parameters including specialty and geographic location.

Insurance Benefit: Trip Delay Insurance

Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period.

Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

Please visit americanexpress.com/benefitsguide for more details.

Underwritten by New Hampshire Insurance Company, an AIG Company.

Insurance Benefit: Trip Cancellation and Interruption Insurance

The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

75,000 Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

1.5%-5% Enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Up to $300 Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

on Capital One's website

2x-5x Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

75,000 Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

THE JOURNAL

Travel Advisor Resources

How Much Does It Cost to Become a Travel Agent?

The Modern Travel Agency

Fora Travel

https://www.foratravel.com/the-journal/how-much-does-it-cost-to-become-a-travel-agent

How much does it cost to become a travel agent? We’re comparing the costs of joining traditional travel agencies versus signing up with us. 

Already know the difference? Sign up to become a Fora Advisor today. 

First, why should you become a travel advisor?

Perhaps of all the jobs in the travel industry , no role better allows people to share their love for travel. If that resonates with you, becoming a travel agent — or travel advisor (we like the modern term) — may be the path for you. 

(Not sure about the role of a travel advisor? Here’s exactly what a travel agent does .)

Do people still use travel agents?

Yes! In fact, the value of booking trips and vacations through a travel advisor has never been better. 

Fora Advisors in particular can unlock an incredible variety of VIP perks and extras at hotels and other services around the world. Travelers pay the same (or better) than they would directly or through an online travel agency (or OTA), such as Expedia, but receive much more. And that's not including optional travel planning advisors offer, which presents an additional value that OTAs can’t replicate.

How difficult is it to become a travel agent?

If you're willing to learn and have an entrepreneurial, roll-up-your-sleeves attitude, becoming a travel advisor is totally doable (and rewarding). Fora gives you everything you need to build a thriving travel business you love. And we especially love how Fora Advisors come from such varied backgrounds. 

There actually aren’t many formal qualifications to become a travel agent

You’re probably thinking there’s a catch. So what does it take to become a travel agent with Fora? An entrepreneurial spirit, can-do attitude and a love for travel, of course. But our guide on how to become a travel agent has an in-depth explanation if you’re curious. 

But certain skills are important

Great interpersonal skills are always a plus (and we'll help you develop those!). Travel advising is a customer-facing role. It’s important to be able to understand your clients’ needs and travel goals, especially if you’re learning how to become a luxury travel agent or work with clients who have a heightened set of expectations.

We'll teach you all you need to know about how to be a successful travel advisor .

You don’t need to attend a dedicated travel agent school or obtain a travel agent certification

Just in case this wasn’t abundantly clear, let us make it concrete: you do not need to attend a travel agent school or have prior travel agent training to become a Fora Advisor. This is one of the great myths about becoming a travel advisor . 

A couple decades ago, specialized schools were, generally, the only way to work your way into the field. But the field has evolved, and Fora has kept up with the times.

Ready to become a Fora Advisor ? Apply today.

Do I need money to become a travel agent?

How much does it cost to become a travel agent? Probably not as much as you might expect. With Fora, you'll only pay a monthly or annual subscription fee, which unlocks our training, tech, marketing resources, access to exclusive partnerships, live webinars, in-person events and so much more.

Startup costs can be fairly minimal compared to most other lines of business

Startup costs to become a Fora Advisor are limited to our membership, which costs $299 annually or $49 per month. Compare that to real estate, accounting or other advisor licenses — or even other travel agency costs — and that figure is quite low. 

Plus, most Fora Advisors make back their investment within the first month. 

Finally, come tax time, these costs can typically be written off as a business expense (specifics vary by state and jurisdiction). 

Self-employed travel agents / agencies have to pay licensing fees

We should note that if you decide to start a travel agency , the startup costs can be quite high — as in, it can cost thousands of dollars just to get off the ground. 

How much does travel agent training & certification cost?

We can’t speak for other host agencies — although, even a quick Google search will reveal travel agent schools that charge well over $1,000 in tuition — but all the training you need to get started as a Fora Advisor is included with our membership (and as soon as you join Fora, you'll be on your way to receive your travel agent certification ).

We should note that our membership also provides extensive marketing resources, unlimited support and access to our integrated booking platform . 

How much does it cost to be a travel agent?

Again, we don’t speak for other travel agencies, but our membership covers nearly all the base expenses you need to maintain your travel business. That includes marketing (to get clients), access to booking tools and lots more. 

The only major exception is internet costs, which, in today’s world, is something just about everyone has to deal with anyway. 

Apply to become a Fora Advisor today.

Do you have to pay monthly to be a travel agent? Are there agency fees?

With Fora, you can either pay monthly or annually. The annual membership currently slashes the total fee by almost 50 percent.

(P.S. Wondering if there are any other reasons to become a Fora Advisor ? Read what our advisors have to say.)

Self-employed travel agents & agencies have a ton of overhead, especially if they're unable to work remotely

Going back to travel agents who start their own agency, maintenance costs can be quite high. You have to factor in license renewals, marketing costs and rent if you’re leasing an office space. That kind of overhead can make it very difficult to achieve success.

Even if you don’t rent an office space, starting your own travel agency can be very expensive. 

(Did we mention that you can become a Fora Advisor from home? Learn how to become a travel agent online .)

What can you expect for the first couple years?

If you’re wondering, " How long does it take to become a travel agent ?", check out this guide. But Fora Advisors who stay patient and diligent typically find success within the first year of travel planning. 

And if you’re wondering if being a travel agent is worth it , we sure think so. Some of the top Fora travel advisor salaries are measured in six figures — which makes up for the membership fees many times over. 

(Curious about travel agent salaries in general? Learn how much travel agents make .)

How much does it cost to become a travel agent? Ask Fora

If you want to know how much it costs to become a travel agent, you won’t get a better answer than connecting with us. Already convinced? Apply to become a Fora Advisor today.

Looking for more travel advisor resources? Check out these guides, as well:

All the Different Types of Travel Agent Jobs

How Do Travel Agents Get Clients? Fora's Top 4 Tips  

How to Become a Disney Travel Agent  

5 Types of Bookings You Can Make as a Fora Advisor (That Aren’t Hotels!)  

Why Group Bookings Are Great: Tips from an Expert  

Book a Cruise With a Virgin Voyages Travel Agent

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How Much Does It Cost to Become a Travel Agent?

Are you a travel enthusiast? Do you love to wander to new places?  Do you enjoy helping your friends plan their vacations? Are you the go-to family member for travel recommendations? If you answered yes to these questions, then you may have thought about turning that passion into a part-time opportunity by becoming a travel agent. Of course, every new opportunity requires some money and initial investment, so you might have asked yourself, “How much does it cost to become a travel agent?” The answer to that question might be lower than you think when you look at becoming a Dream Vacations Advisor.

Becoming a Dream Vacations Advisor Travel Agent

You currently want to turn your passion for travel into an independent business opportunity for yourself and sell all types of vacation packages or simply sell cruises from home . You want to make some supplemental income for yourself and your family and have the flexibility to combine it with your full-time job. If this is the case, then becoming a Dream Vacations Advisor might be a great fit for you. Dream Vacations Advisors are independent contractors who work alongside Dream Vacations franchise owners; these franchise owners help to mentor and guide you to start working in and understanding the travel industry.

As a Dream Vacations Advisor, you only pay a $39 monthly fee. This is your investment to access the necessary support, marketing, support and technology tools to become a travel advisor and start selling dream vacations to your friends, family and clients. Once you have asked the question, “How much does it cost to become a travel agent?” you also must consider what is the return on that investment. Dream Vacations Advisors receive so much value in exchange for their monthly fee, including:

• Support from a dedicated corporate team and a passionate community of fellow advisors.
• 24/7 access to more than 1,500 on-demand eLearning modules that progress with your travel career. Start learning the basics and continue with ongoing weekly refresher courses on your schedule.
• Automated marketing programs such as social media posts, email marketing, videos and more.
• Personalized consumer-facing booking website maintained by Headquarters.
• Weekly marketing and promotional emails sent on your behalf.
• Access to free or reduced rate travel with our travel suppliers.
• Access to our Business Center intranet and to Cruise Control, our online CRM, reservation and financial system.

As a Dream Vacations Advisor, you can obtain great travel benefits! When you are an Advisor, you have the opportunity to take trips at significant discounts, so you get to know new cruise ships, destinations and resorts first-hand. You can then use that knowledge to help customers plan their ideal dream vacation!

The great thing is that your office can be anywhere with an internet connection; you just need a smartphone, laptop or computer. You can sell vacations through your own booking website. This means no overhead costs, and most importantly, you set your schedule.

Becoming a Dream Vacations Advisor is one of the best supplemental income opportunities available, which provides you with the best ongoing support and the most flexibility to work around your lifestyle.

How Much Does a Travel Advisor Make ?

While there is a monthly fee for Dream Vacations Advisors, the opportunities to make money are so much greater. Advisors earn money on every sale they make through our travel agent commission system. It is simple – the more you sell, the more money you make.

You can earn a travel commission on all the products you sell. You’ll earn 60% of the supplier commission of each sale, which includes various vacations such as cruises, resorts, tours, theme parks, villas, excursions and more. You can earn extra commissions by offering travel protection, shore excursions, hotel stays, consolidated airfares and other optional cruise features. If you’re willing to put in the work and find customers in your community and beyond, there’s no telling how much you can make!

Dream Vacations has been in the travel industry since 1992, and is a true powerhouse that offers you the best commission for travel agents ! So, if you’ve got all the answers you need to the question, “How much does it cost to become a travel agent?” and want to learn more about becoming a Dream Vacations Advisor, get started by signing up for our FREE webinar today

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How much do Travel Agents make? Commissionable rates and Revenue Streams

By: Marium Farooq

October 30, 2023

Table of Contents

How much do Travel Agents make? Commissionable rates and Revenue Streams 

The travel industry, much like the rest of the world, has undergone significant transformations in recent times. The pandemic has in some ways reshaped the travel landscape. With the evolving economy and the dynamic changes in travel trends, let’s dive into how travel agents earn their income, exploring the factors influencing their earnings, their diverse revenue sources, and the commission rates they receive per booking.

There’s no one-size-fits-all approach when it comes to understanding the earnings of travel agents. It depends greatly on the type of travel agent. So, let’s first dive into what a travel agent is and explore the different types of travel agents.

What is a Travel Agent?

A travel agent is like your travel planning partner. They help you plan, organize, and book their trips by connecting them with airlines, hotels, rental car services, and tour operators. These experts have extensive knowledge about various destinations, travel options, and industry trends, which they use to offer personalized recommendations to their clients. And while they may not be as common in North America as once before, there is a strong network of agents helping millions of travelers worldwide book their journeys.

Travel agents often use Global Distribution Systems (GDS) to access real-time information on flight availability and prices. Their main role is to guide clients through the complexities of travel. They listen to your preferences, budget, and what kind of experience you’re looking for, and then they create a customized travel plan that fits your needs. Additionally, they take care of tasks such as booking flights, accommodations, transportation, and activities, ensuring everything goes smoothly. They can also provide valuable insights on visa requirements, travel insurance, and local customs to help travellers make informed decisions and avoid potential problems.

Travel agencies usually earn a commission, a percentage of the overall cost consumers pay. This rate can vary depending on the product or service being sold, which means that booking through a travel agency may sometimes cost a bit more than booking directly with the suppliers.

Regarding the terminology, you might hear both “travel agent” and “travel advisor.” In 2018, the American Society of Travel Advisors (ASTA) rebranded from “travel agent” to “travel advisor” to emphasize that their role goes beyond simple transactions. In Canada, a similar shift was noted in 2019. However, both terms are used interchangeably in the industry, so don’t worry if you hear either one. The important thing is that these professionals are here to make your travel experience enjoyable and stress-free.

Types of Travel Agents

Understanding the various types of travel agents is essential to gain insight into their commission earnings and revenue sources.

Offline Travel Agency

Before the internet’s rise, travelers would physically visit a travel agency to plan their adventures. With the advent of technology and online travel agencies, offline agencies have faced challenges. Within this category, there’s a new model known as a retail travel agency. Retail agencies operate like traditional retailers, buying travel products from wholesalers and selling them directly to customers.  creating itineraries, finding deals, arranging transportation and accommodation, managing refunds and cancellations, and handling insurance, travel documents, and currency.

Online Travel Agency (OTAs)

Online travel agencies, often abbreviated as OTAs, are major players in the travel industry, offering a wide array of travel services directly to consumers. These services encompass airfare, accommodations, car rentals, and vacation packages. For many tours and attractions, including Online Travel Agencies (OTAs) in their distribution strategy is crucial.

OTAs have emerged as the fastest-growing distribution channel for tours and activities, and they wield considerable booking influence, mainly owing to their substantial scale. Expedia, for instance, draws a s taggering 112 million monthly visitors across its network of travel websites. The success of OTAs highlights the significance of offering personalized services in today’s business landscape.

Online Travel Agencies OTAs  typically generate revenue by collecting a commission, which is a portion of the total booking expenditure incurred by the hotel. These commission rates can fluctuate depending on the specific OTA, typically falling within the range of 20% to 35%. Furthermore, certain OTAs also apply commission fees to additional services or amenities like breakfast or parking, which can result in an additional percentage increase.  

Wholesale Travel Agency

Wholesale travel agencies play a pivotal role in the complex travel distribution channel. They purchase travel products in bulk from airlines, hoteliers, and transportation companies and then sell them to retail travel agencies. These wholesalers are experts in planning, organizing, marketing, and creating holiday packages based on traveler preferences. 

Business Travel Agency

Business travel agencies, or travel management companies (TMCs), specialize in managing corporate travel. They offer several advantages over OTAs, such as expertise in business travel, quick booking, discounted airfare and hotel rates, 24/7 on-trip support, and crisis management. Business Travel agents excel at simplifying travel planning, reducing the time spent on research and reservations. They also assist business travelers in discovering accommodations and experiences that they might not be able to find on their own. 

Leisure Travel Agency

Leisure travel agencies focus on selling holiday packages to individuals seeking a break from their routine lives. These agencies provide customized packages, itinerary planning, accommodation booking, and guided tours tailored to customers’ preferences. Understanding the unique needs of leisure tourists is something that they excel at. 

Niche Travel Agency

The modern traveler seeks experiential journeys, leading to the rise of niche travel agencies. These agencies offer specialized tourism products designed for niche interests, such as ecotourism, agritourism, cultural tourism, health and wellness tourism, and cruise tourism. By catering to specialized customer needs, niche travel agencies have achieved remarkable success. 

Revenue Streams for Travel Agents

Travel agents can have various revenue streams, but their main earnings come from the careful planning and booking of different aspects of a trip for their customers. This can include booking airline tickets, arranging car rentals, reserving hotel accommodations, and coordinating tours and activities, all customized to meet the specific requirements of either an individual client or a larger group. Here are some of the ways Travel Agents make money:

Commissions 

Now that we’ve explored the landscape of travel agents, let’s unlock the secrets of their income. The primary source of income for travel agents is commissions. These commissions can vary widely, ranging from 5% to 30% , depending on factors like the type of booking, the elements involved in the travel package, and the vendor with whom they are affiliated. Besides commissions, travel agents can generate revenue through service fees. These fees can be charged for a range of services, such as planning, itinerary building, or even providing consultations.

Service Fees

Many travel agents have their own distinctive approach to service fees. These fees can take various forms, making each travel agent’s pricing structure unique. For instance, an agent might have a flat service fee that applies to all trips, and this fee can range from $150 to $300 or even more, depending on the agent’s practices. Alternatively, some travel agents may offer a separate fee exclusively for helping clients with travel planning.

Another interesting aspect is that travel agents can opt to provide planning and itinerary building services without handling the actual booking. In such cases, they may charge a fixed “planning” fee and once they’ve crafted the travel plans, their involvement ends. This approach offers a distinctive take on how travel agents serve their clients.

Revenue Stream from Add-Ons

Travel agents commonly have an additional revenue stream from the add-ons they offer once a trip has been confirmed. These may include items like travel insurance, private transfers, concierge travel services, cancel-for-any-reason coverage, and other offerings that yield profitable margins for the agent. Typically, these services involve upfront commissions and fees, significantly increasing the overall profit generated from the booking. For many travel agents, the sale of add-ons, such as travel insurance, constitutes a substantial portion of their revenue. This not only provides attractive commission rates but also fulfills a crucial need for travelers.

Marketing Fee from Supplier Listings

Promoting Supplier listings is another avenue that travel agents leverage. Businesses within the travel industry, including transportation companies, hotels, and rental companies, pay to have their services prominently featured on a host agency’s website. This prominent placement draws the attention of potential customers to these premium services. In return for this promotion, the travel agent  receives a payment from vendors for the promotional service.

Niche Travel Services

The most profitable model for an online travel agency is one that focuses on customer experience.Travel agents have the ability to create unique, tailored experiences for specific occasions, such as special needs travel, destination weddings, and sports travel. By designing travel packages for niche groups, such as corporations or interest-based organizations, travel agents can significantly boost their profits. Crafting these specialized packages involves ensuring seamless corporate travel experiences and promptly addressing any issues. Travel agents can harm their reputation if these aspects are not managed effectively. 

How Much Do Travel Agents Make Per Booking? 

Travel agents’ commissions vary based on factors like the booking type, travel elements, and the vendor they work with. Commissions can range from as low as  5% to as high as 30% . For instance, if a travel agent earns a 10% commission on a $2,000 booking, they would make $200. However, if the booking is complex, involves multiple countries, and the agent charges a service fee of $200, their total income from that booking would be $400.

Do Travel Agents Get Paid Hourly? 

Yes, travel agents can receive hourly pay, especially if they work for larger agencies. Hourly pay for travel agents in the United States averages around $23 per hour , reaching as high as  $30.82 per hour . However, travel agents are often compensated through other means, such as salary or commissions.

The income of a travel agent depends on their location, partnerships, and agreements. In this highly competitive industry, success comes to those who invest effort, energy, and passion into their work. Whether you’re a leisure travel agency owner, a business travel agency owner, or you specialize in niche travel, the key to growth lies in making the booking and travel process as seamless as possible for your clients. Understanding and catering to the specific needs of your customer base is essential in any industry, including the travel business.

In conclusion, travel agents play a crucial role in making travel dreams come true for their clients. While the industry has seen its fair share of challenges, travel agents continue to thrive by adapting to changing trends, exploring new revenue streams, and providing exceptional service. Travel is more than just booking flights and hotels; it’s about creating unforgettable experiences. 

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Five Reasons Travel Agents Should Charge Fees

Once upon a time, travel professionals earned their living in the form of commissions from suppliers. But today that’s no longer the case; many agents earn most of their income—and some earn all of it—by charging their customers professional fees.

If you’re not yet in that number, here are some reasons to consider joining the trend.

1. You are entitled to payment for your professional advice. When you book a cruise, tour, or hotel room, the commission the supplier pays is essentially a “thank you” for choosing its product over a competitor. It’s your client who should be paying for your expertise, your research, your time and your customer service, as they pay every professional they hire.

2. Fees imply value.  Confession: I am not one to turn down a Costco sample on Saturday morning. But they only offer me a bite, not a full meal. Take yourself seriously enough to place a price on the service you are delivering. Confidence is attractive, and fees help sculpt client expectations to value you as a sophisticated travel consultant.

3. Fees improve the reputation and health of our industry. Sure, your clients could do their own research on the Internet. But as a travel professional, you eliminate information overload and create a painless, customized travel experience for them. Delivering on this promise—and charging for it—emphasizes the relevance and trustworthiness of the profession as a whole.

4. Cash = Commitment. From Weight Watchers to the gym down the street , retailers know that charging a fee up front creates a psychological commitment. Clients will be less likely to pump you for information and then disappear if they’ve invested in your services.

5. Cheaper Isn’t Always Better.  The success of companies like Apple and Starbucks prove that people are willing to pay more for attractive, quality products. Don’t compete to be the cheapest. Compete to be the best.

Emily Peters is a contributing writer for Montrose Travel.

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These Instagram accounts are bursting with beautiful photos, insider travel and marketing tips, and more.

The program lets advisors earn points that can be exchanged for incentives. 

Brownell Travel on Monday made two major moves in its executive team.

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Oceania Insider Connect can help advisors boost their Oceania-related marketing and sales efforts.

What Does It Cost To Be A Travel Agent?

Ready to jump in as a Travel Agent but want to understand exactly what you'll need to pay out of pocket to get started?

You are in the right place!

We are going to break down ALL the costs involved when you sign up as a Travel Agent with Gateway Travel.

So what is the cost involved?

START UP COST: $0.00

We DO NOT believe in startup costs. A lot of agencies charge upwards of $500 to join - At Gateway Travel, WE believe ALL startup costs should be put into developing YOUR business, not our pockets.

SECRET HIDDEN COST: $0.00

We have all signed up for something only to realize we didn't read the fine print and end up paying some unknown, secret, or hidden fee the company didn't disclose upfront. We pride ourselves on being transparent with our agents and have NO HIDDEN FEES.

Commission Package: Starting at $29.99 per month

That is right , unlike A LOT of agencies out there we ONLY have one fee! With NO START UP COST or HIDDEN FEES you only have to focus on picking the right commission package that suites your goals as a travel agent.

We have four different options for to review and select

You can see more information on our Commission Pricing Page

Let's look at an example:

If you signup as a Travel Agent with Gateway Travel at the 70% commission package

the ONLY FEE you will have is your $39.99 monthly fee - that is it!

Check out an example of how a Travel Agent gets paid here !

We are so excited for you as you jump into the travel industry and know great things are to come!

Serving our agents is our NUMBER ONE priority - We don't sell travel but strictly focus on providing the best service possible to each and every one of our agents.

Remember, Gateway Travel has NO HIDDEN FEES and NO START UP COST.

We are here to help serve you any way we can! Our goal is to help you be unique and truly BE YOU! You can always fill out a Contact form so we can assist with any questions you may have or if you are ready to sign up as a Travel Agent today get started now .

We can't wait to have you be a part of our wonderful team of agents! We would love for you to take the time to read our Facebook Reviews and see what our agents are saying first hand.

#commission #travelagent #workathome

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Is a travel agent worth it the pros and cons.

Travel experts agree there are several advantages to hiring a vacation planner.

The Pros & Cons of Using a Travel Agent

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A travel agent can save you money and time.

Need to pivot your trip plans but don't want to deal with the extra time, money and hassle of rebooking flights and accommodations on your own? That's just one area where a knowledgeable travel agent (also commonly known as a travel advisor) can help. Read on to discover the other benefits – as well as the downsides – of using a travel agent, so you can confidently decide whether or not a travel agent is worth it for your next trip.

The Pros of Using a Travel Agent

Travel agents can save you money – and get you other perks.

"In some cases, you'll actually get a better  deal by working with a travel agent," says Jackie Steele, travel expert at MagicGuides . "This could be in the form of a cruise onboard credit (free spending money to use on the ship), access to special agency/group rates, or even just learning about a discount you qualify for but weren't aware of." The best agents will even keep an eye on new discounts as they're announced and apply them to your trip even after you've booked, he notes.

Travel agents handle all the details

Hotel room? Booked. Dinner reservations? Made. Tour tickets? Ready to go. A travel agent handles every detail of your vacation itinerary. "The traveler still gets to be involved in the fun part of dreaming up ideas and providing their travel wishes, while we take and perfect them," says Jessica Parker, founder of Trip Whisperer .

Molly McShea, owner and travel advisor at McShea Travel , points out that travel agents can also help with timing logistics. "Travel agents know how many days should be spent in each destination, which tours go together, and how many things you should do in a day," she says, adding that crafting an itinerary can be challenging if it's not something you regularly do. Additionally, travel agents can help you choose the best time to visit your preferred destination(s) based on seasonality and your budget, and sift through travel insurance policies to find the best option for your needs.

Travel agents can provide local expertise

"A travel advisor's industry connections and relationships provide added value to their clients," says Valerie Edman, a luxury travel advisor and agency owner at Cultured Travel LLC. She says when working with a travel agent, travelers gain access to a global network of connections including:

• In-destination specialists who work exclusively with travel advisors and can connect travelers with unique, off-the-beaten-path experiences they wouldn't otherwise know about
• Exclusive experiences not available to the general public

You'll avoid surprise fees

When deciding if a travel agent is worth it for you, remember this: A reputable agent can guarantee you won't encounter any surprise fees on accommodations and activities once your trip is booked.

You'll have someone to troubleshoot unexpected travel issues

A travel advisor is essentially your personal vacation concierge. "Because they've been around for so long, agents really know what to look for," says Christopher Elliott , a consumer advocate and journalist. "Travel agents are among the first to know about flight cancellations and delays , making it easy for them to rebook itineraries right away." 

The Cons of Using a Travel Agent

It might not be your cheapest option.

There are some instances when it makes more sense to plan your own trip. "If you're planning a quick flight from New York City to Los Angeles, it's easy enough to book it yourself online directly or through a third-party booking site," says Elliott. "If you're planning a once-in-a-lifetime trip or bucket list honeymoon , that's when you call the experts."

You'll have less flexibility in your itinerary

The upside of working with a travel agent is having someone plan an epic vacation for you based on industry knowledge and local expertise. But this can also be a downside in the event you discover an activity you'd like to do or a restaurant you'd like to try that isn't on your pre-planned itinerary. If you alter your plans, you risk losing money; plus, the time it takes for you and your travel agent to coordinate your change of plans may not be worth the hassle.

You still have to do some research

It's important to find an agent you can trust, which means you still have to do some of the vacation planning. For this part, Parker recommends picking up the phone. "Lots of people avoid or don't pick up the phone as much anymore," she says. "That's where you get the high-touch service, tone of voice, excitement or concerns to manage." She advises to look for the following red flags:

• No fees: " Travel advisors are charging planning fees more now or increasing them, so the client knows more confidently than ever, we work for them, not the suppliers with the best commissions," Parker explains. "There are a lot of things that are non-commissionable and the advisor's time and expertise shouldn't be given away for free, either. That's the best way to show an advisor takes their business seriously."
• Limited options: If you work with someone who is inexperienced or has an incentive to book you with a certain supplier, they may not be prioritizing your best interests. "It's important to check if they are with a larger consortia, accreditations and network, typically listed on their website and signatures," says Parker. "That level of mindshare doesn't come with a lone advisor unless they have many, many years of experience."
• Slow response times: If communication is delayed, that's a sign they may be too busy to plan your trip – but again, this is something you can avoid by having the right conversations early on.

Edman suggestes starting your search with the American Society of Travel Advisors . "ASTA-verified travel advisors are committed to the highest industry standards and have verifiable industry knowledge so consumers can feel confident in working with them," she says.

You might also be interested in:

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• What to Pack in Your Carry-on Bag
• The Best Luggage Brands

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If you're still wondering if being a home based agent is right for you - don't just take it from us. Check out this Ways and How video on "How to Become a Travel Agent from Home."

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Is a home based travel business the right choice for me?

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Many Travel Agents Haven’t Ever Charged Fees. Here’s Why Some of Them Do Now

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Let’s be honest: When it comes to travel, most of us worry about our budget—a lot. Some travelers find it hard to trust travel agents or advisers because they worry about being charged for using their services.

However, not all travel advisers have fees—though it is a growing trend to charge them.

Are Travel Agents Free?

Traditionally, travel advisers are paid a commission by their suppliers. So if you go on a cruise, the cruise line will pay the travel adviser you use for booking your trip.

Commissions are usually a standard commission rate decided by the cruise line (such as 20 percent of the cost of the cruise), though this can range depending on, for example, whether your travel adviser is affiliated with a host agency that can provide higher commissions for the suppliers they use most frequently due to business partnerships (though often the host agencies take a portion of a travel adviser’s commission, which can further complicate things). This is the case for cruise lines, tour operators, hotels and resorts, and even vacation packagers.

Commissions were once the standard way that travel advisers made money—not by charging customers, but by earning money from the suppliers they used.

Tammy Levent, president of Elite Travel Management, explains why her agency has never charged fees: “At Elite Travel, after thriving in the travel industry for over 30 years, we have built a solid reputation based on trust and exceptional service. We understand the competitive nature of today’s travel market, especially with the rise of online booking platforms

Why More Travel Agents Are Charging Fees

The same is happening among travel advisers, and a new trend has begun: charging fees for certain travel planning services. Of the 26 travel advisers who shared their expertise for this article, 17 of them charged some type of travel planning service fee, though their fee structures vary.

So what are some specific reasons that travel advisers are beginning to charge fees for their services? Let’s take a closer look.

One of the biggest reasons travel advisers choose to charge fees for their travel planning services is to weed out any clients who might not be serious clients in the long run. Travel advisers can spend hours quoting and pricing trips for travelers, yet those same travelers might just book directly or choose to plan the trip themselves, therefore taking away the opportunity for their adviser to generate income from those hours. That’s only one example of one of the frustrations of a travel adviser.

More complicated bookings like FIT trips, group travel, destination weddings, or meetings can also take hours to plan, yet most travel advisers aren’t paid by the hour. That means they’re relying on the promise of a commission only after their clients have left on their trip.

Another reason should be easy to understand: Sometimes, commissions just aren’t enough. Imagine a travel adviser only earns $200 in commission from a FIT booking that took 16 hours to plan, book, and execute. Divided by the number of hours spent planning the trip, the travel adviser’s take-home pay is only $12.5 per hour.

While this is a creative example, it can demonstrate that sometimes the amount of time spent planning travel for others doesn’t actually pay when it comes down to the amount of commission the adviser will earn, leading some to introduce travel planning fees, fees for booking airfare (another segment that pays relatively limited or no commission), and more.

JoAnne Weeks, Vacation Division Director at Acendas Travel, was one of the travel advisers who started out not charging fees, but found them useful and even necessary after the pandemic ended.

“I am the first to admit that I pushed back on fees for a long time,” said Ms. Weeks. “Especially for cruises, but I came to realize, I was giving away my 28 years of cruise expertise to my clients for free. People would request information, I take my time to research, put together a custom quote for lines they hadn’t even heard of, only for them to take my information I gifted them and book it themselves. We grew tired of being used. You’re required to pay to consult a lawyer, a plumber’s service call, heck even the person cutting your hair. We are worth it.”

Ms. Weeks said that the revenge travel trend of the post-pandemic travel era led to many travelers asking for information, but leaving without booking with Acendas Travel, leaving her to implement a fee structure in 2021. Fees for her agency include a cruise concierge fee, FIT fee, flat air service fees, and more, all adjusted according to how long each takes to plan.

Nick Pena, Luxury Travel Designer at Cruise Planners, is a travel adviser who charges clients fees for ticketing airfare, changing their itineraries, and cancellations.

“Charging fees helps weed out the clients I don’t want and keep the ones that value the work that I do,” Mr. Pena explained. “Having a fee structure allows the adviser to have a more stable income, guaranteeing my time is paid for whether they do the trip or not. Even simple tasks like ticketing airline tickets get a fee of $25. No one else works for free. Why should I?

Why Book With a Travel Agent?

Well, it’s all about expertise. Travel advisers are experts at planning travel, and sometimes that’s exactly what you need. While you could book something online without ever talking to a human being, that human connection is often what people need, especially when things go wrong on trips or when you’re looking to book something completely unique.

Madeline Steuber Johnson, co-owner of Steuber Travel Group, explains her agency’s outlook: “We have multiple calls getting to know our clients; we often spend a lot of time designing an entire itinerary before it even gets to a DMC. We hand-pick the hotels and we push back in the quoting process with our partners, asking follow-up questions and making alternative suggestions so that we really deliver something highly personalized. That, in itself, requires investing a huge amount of time into our education and destination knowledge as well. We are not in the business of acting as a middleman or woman, forwarding generic itineraries provided by companies doing this on a mass market scale.

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About the business.

Welcome to the world as seen through my seasoned traveler's lens! A U.S. Army Veteran, I'm your go-to, FEE-FREE Independent Travel Advisor who’s not just wandered but soared the globe; an airline Million Miler whose passion has charted a 40-year-long voyage across 33 countries and 6 continents. From busy corporate travel to the bliss of sandy shores, I’ve orchestrated everything—incentive trips, exotic vacations, family reunions, group tours, cruises, and more and that's barely scratching the surface of the globe. My FEE-FREE services will: - Saves you time and stress - Provide insider knowledge and connections - Provide personalized service - Be your advocate in unexpected situations - Provide peace of mind The best things in life are the places you’ve been, the memories you've created, and the footprints you leave behind. That's why I'm here. To offer the wealth of my knowledge and love for adventure to help you make the most of your travels. I'm all about adding value to your experiences without adding cost. Whether you want to conquer corporate travel complexities or plan the incentive trip that motivates everyone, I'm your pilot. Why settle for virtual when you can have personal? Join me, and together, we'll tailor trips that will have you ticking off your bucket list destinations one by one. Jet-setters, globe-trotters, and new explorers, I’m at your service—to guide, plan, and ensure the sky's truly the limit when it comes to your travels! Ready for takeoff? …

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The Ten Commandments of Points and Miles

U sing credit cards has its rewards when you follow the Ten Commandments of Points and Miles.  Follow these rules, and you will rack up more points and be able to travel more often!

1.  Pay Off Credit Cards Monthly

Travel is not free if you are paying interest.  Not paying off your credit cards monthly or paying late can also affect your credit card score.  It is important to have a good score so you can apply for and get approved for more cards.  We want all the points, which means maintaining good credit scores so you can get multiple approvals.  My credit card score has never been as high as it has been since I started using credit card points and miles.  Don’t believe the credit card myths that others tell you.

2.  Use 2-Player Mode

Get your spouse involved! We never make each other Authorized users . Instead, we refer the other person to the card. In doing so, we get a referral bonus and a signup bonus twice!  For example, when you sign up, the Chase Sapphire Preferred Credit Card has a bonus of 60,000 Ultimate Rewards as a standard bonus. If I sign up for the card and refer my husband, we’ll have 120,000 Ultimate Rewards, plus I’ll get 10,000 points for referring him!

3.  Meet Minimum Spend

The saddest thing is when we hear someone didn’t get their bonus points because they missed meeting their minimum spending by just a bit. Put everything  on that card when you are trying to meet the minimum spend.  Use it like a debit card. We discuss all the items you can pay for with a credit card here . To be safe, go over that amount by a couple of hundred dollars. Chase has a tracker that lets you know how much you’ve spent so far and when you need to meet your minimum spend. It is super helpful!

4.  Use Organizational Sites

Use sites like Travel Freely and AwardWallet to stay organized. Travel Freely will track all the credit cards you’ve opened, when annual fees are due, and your Chase 5/24 status . Award Wallet will keep track of your point totals from all your loyalty accounts and when those points expire.  They make everything about being organized easier. 

5.  Use a Credit Card for ALL Spending

Quit using cash or debit cards!  You want all the points you can get. There are definitely some cards that will get you more points than other cards.  For instance, my American Express Gold Card gives me 4 points per $1 spent on groceries or dining.  I use that card in those instances. Even if you only get 1 or 2 points per $1 spent, it’s better than no points. It really does all add up! Not sure which card to use? Check out the CardPointers app , it’ll tell you which card is the best to use for a certain purchase.

Use a Credit Card for all your purchases, including groceries!

6.  Review Cards When Annual Fees Post

Always review your cards when the annual fee is posted each year.  You have 30 days to decide if you want to keep your card after the fee posts and before it is due.  Is the annual fee worth it?  Do the benefits outweigh the fees?  I keep most of my hotel cards because the annual fee is less than 1/2 of the free hotel stay for most of them each year.  Travel Freely will let you know ahead of time when your annual fee posts, so you have plenty of time to decide if you want to cancel, keep, or downgrade the card.

7.  Know Some Basic Credit Card Application Rules

Be familiar with Chase Credit Cards and the 5/24 rule . It is usually best to apply for Chase cards first.

Know that you can usually receive the bonus on each  American Express Credit Card once. Occasionally, an AMEX card comes out with no lifetime rule, which is a nice surprise.

There are also some cards that you can cancel, wait 24 months, apply for, and get the bonus again.  I haven’t begun to run out of cards to apply for, and I have earned over 7 million points in the last seven years between my husband and I. Here are some general application rules . The Travel Freely Card Genie is great because it will only recommend cards that you are eligible for.

8.  Know That All Points are Not Created Equal

This is a huge points/miles commandment: Use points for their maximum earning power!  I could use 60,000 Chase Ultimate Rewards and get two $500 round-trip tickets domestically.  I could also use 60,000 Chase Ultimate Rewards and get a $4,000 one-way business class seat in lay-flat seats. What is worth more to you?  If you only plan to travel domestically, then doing the first scenario might be worthwhile.  I’d rather use my points in the second scenario, where my points are worth more money.

People often think that earning 2% on a credit card is great.  If I spend $3,000 on that card, I would get $60 back.  That is better than nothing.  I prefer to get 40,000-60,000+ points for that $3,000 minimum spend that I can use on a flight from $500 to $6,000.  Use and earn your points wisely.

If you see an offer for 100,000 Hilton Honors Points and another for 60,000 Chase Ultimate Rewards, your initial thought is that the 100,000 Hilton points seem better. Actually, Hilton points are valued at around 0.5 cents each, but the Ultimate Rewards are valued at 2 cents each.  I can find a reason for both in my portfolio, but, starting out, you might want to concentrate on those that are worth more.

Staying at a Hyatt Resort is a great use of your points!

9.  Remember That It Is All About Bonus Points

Getting points for all credit card spending is great.  Remember that continually adding bonus points increases your total points for travel.  If I just get 2-4 points for $3,000 spent, I will have 6,000-12,000 points.  If I get bonus points after meeting that $3,000 minimum spend, I will get those points PLUS the bonus!! That could mean 63,000 points! Don’t fall for the common misconception that you just need to open one card and put all your spending on that one card.

10.  Do It Again

Another good practice with credit card points and miles is this:  Do it again.  I continually try to sign up for new cards, meet the minimum spend, collect my bonus points, plan travel, and do it again.

Bottom Line

This is an amazing hobby, but to take it to the next level, you need to follow these 10 Commandments of Points and Miles. Please contact us at any time with questions!  Now, where are you planning your next trip?

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• Many Airbnbs offer discounted rates for monthlong and weeklong stays. 
• Airbnb also has a separate search portal specifically for sublets .
• We break down key info on booking long-term Airbnbs, including fee and cancellation policies.

If you're thinking about relocating your home office, you're not alone. According to Airbnb , more travelers are now searching the platform for stays longer than 28 days, and as of 2020, over 80 percent of hosts  are now offering long-term stay options.

On Airbnb, hosts are free to set stay limits and minimums, as well as discount options for anyone booking their listing for weeks or even months at a time. Not only does the discount incentivize someone looking for a longer stay to choose a particular listing, but it also means that the hosts will have a lower turnover rate, which often translates into less work for them .

While long-term Airbnb listings will show up in a standard search, you can also more easily find them by going directly through the website's sublet hub . This will bring up only listings where hosts have agreed to allow stays of a month or longer, but be aware that not every long-term stay is discounted.

Renting an Airbnb for a longer stay has numerous benefits. First, it can be cheaper than a typical lease and is adjustable to your travel plans. For example, if you're arriving somewhere on March 18 and leaving on April 28, you can often still enjoy a discounted stay without needing to pay for any unused days. On top of that, hosts must prove that their listing is really livable for a long-term stay, which means all long-term Airbnb listings come equipped with a full kitchen, strong WiFi, and essentials like bed linens and soap at a minimum. 

You'll also enjoy the benefit of knowing that every listing must adhere to Airbnb's Enhanced Cleaning . Airbnb introduced its Enhanced Cleaning policy in 2020, and you can rest easy knowing that hosts are cleaning and sanitizing the space between visitors. Not to mention, booking a long-term Airbnb is an easy way to earn travel points on your credit card .

Overall, booking your next sublet through Airbnb can be a great deal, but there are a few things you should know ahead of time.

What's the minimum number of days needed to book a long-term Airbnb?

Long-term Airbnb discounts start at bookings of 28 days or more. You don't have to book for the first of the month, but the days do have to be continuous, so if someone's already booked a weekend in between your desired dates, it won't work. It is entirely up to the host to decide whether they will offer their listing for longer stays and they can set the minimum stay for 30 or 31 days if they are specifically targeting long-stay visitors. 

Airbnb hosts also have the option of setting weekly or monthly discounts and the percentage of that discount is entirely up to them. Airbnb recommends that hosts offer a discount equal to their expected vacancy , so discounts can vary wildly. When browsing Airbnb with your dates selected, you will be able to tell which listings offer discounts because of the strikethrough in the price. When you click through to the listing, you'll be able to see the percentage discount displayed in the price summary.

How much is the discount for a long-term Airbnb?

Discounts can vary immensely. For example, this studio apartment in Seattle offers a 10% discount while in New York City, this Brooklyn studio is 52% off, and discounts can go even higher than that. Just look at this four-bedroom home in Bellville, Kansas , which normally goes for $85 per night but is offering a 71% discount if you book for the month. Of course, it's always possible that a host could be inflating the price to attract bookers with a big discount number, so you'll have to do your due diligence to determine if the listing is really worth what they're saying.

Do you still have to pay fees on a long-term Airbnb rental?

The discounted rate does not apply to any extra fees, including the service fee, which can be higher depending on how long you book your stay. Occupancy taxes may apply depending on the state and these will also increase depending on how many days you book. If there is a cleaning fee, this should be similar to what you'd pay for a short-term rental, but the host may increase the cost if they are exclusively listing for long-term stays.

Can you visit an Airbnb sublet before you book?

While booking a sublet through Airbnb has its benefits beyond the discount (like not having to pay a security deposit or worry about utility bills), it's also not a traditional rental situation. Unlike an apartment that you might see in-person before making a decision, you often are not able to see a particular listing before you decide to book.

Airbnb encourages users to ask the hosts questions about the listing through their private messaging system and complete their booking before meeting in-person. You could always try asking your host if you could visit in person before you commit, but they don't have to comply.

Do you have to pay for a long-term Airbnb rental upfront?

Unlike many short-term stays, you don't have to pay for your whole stay upfront if you are staying for multiple months. After you've booked your reservation, you'll pay for the first month  as a down payment. Then, after you check-in, you'll then be charged monthly throughout your stay. The price is locked in when you book, so you don't have to worry about rates going up halfway through your reservation. 

What if you need to cancel your long-term Airbnb?

Cancellation policies depend on the individual host. An Airbnb host can opt to allow cancellations up to a month before your visit or 48 hours after you book, so be sure to pay attention to the cancellation policy when booking. This doesn't give you much wiggle room to change your mind and if you do cancel outside of that short window, you will still have to pay for the first 30 days of your reservation and the service fee.

If you check-in and decide to cancel after your trip has begun, you will not be refunded for the next 30 days after your cancellation. If you have extenuating circumstances that fall under Airbnb's Major Disruptive Events Policy , it may be possible to appeal for a full refund. If you are not confident in your travel plans, booking an Airbnb for a month or longer can be risky. 

Are there any legalities to take into account?

Because of varying tenant laws, your host may ask you to sign a contract before confirming your reservation. If this is the case, the host will be required to disclose this information to you before confirming your booking. If your host asks you to sign a contract after the fact, it's within your right to decline and to ask them to cancel your reservation without a cancellation penalty.

Local legislation regarding how hotels and long-term apartments should be run vary widely and Airbnb hosts in different cities may need a different level of commitment from guests before the stay is confirmed. Because your host will be required to disclose this to you before you commit to the booking, make sure you take ample time to review the document and seek counsel or find another booking if something doesn't seem right. Airbnb recommends that guests review the contract within 48 hours after booking, so be sure you are prepared when you book. 

Book a long-term Airbnb here

Axel Springer, Insider Inc.'s parent company, is an investor in Airbnb.

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