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How do AAA travel agents make their money?

COMMISSION SHARE Commission pay-out is tiered and paid to you monthly. While all of our independent contractors start at a shared percentage of 70% of commission earnings, you can earn up to 90%, based on your sales achievement.



Excellent question. The business model of AAA (American Automobile Association) travel agents is a bit more layered than that of a typical independent travel agency. Here’s a detailed breakdown of how they make their money.

The core answer is: Primarily through commissions from suppliers, plus membership fees that support the overall organization, and some service fees.

Let’s break it down:

1. Commissions (The Primary Revenue Source)

This is the traditional travel agency model. When a AAA agent books the following, the supplier (cruise line, tour operator, hotel, etc.) pays them a commission, typically a percentage of the sale. Cruises: This is a major profit center. Commissions can be significant, especially for premium lines. Packaged Tours: Companies like Globus, Collette, or Tauck pay commissions to AAA for booking their all-inclusive land tours. Hotels & Resorts: They earn commissions on booked rooms, though this has diminished with the rise of online travel agencies (OTAs). Car Rentals: Agencies get a small commission or referral fee. Theme Parks & Attractions: Selling tickets to Disney, Universal, etc., often comes with a commission. Travel Insurance: Selling policies (often through partners like Allianz) provides a commission. This is a high-margin product for agencies.

Key Point: The client does not pay extra for this commission. The price is built into the cost of the travel product, whether you book direct or through an agent.

2. Membership Dues (The Unique AAA Aspect)

This is what sets AAA apart. Customers must be AAA members to

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Generally, leisure travel agencies' main revenue is from commissions vendors pay on vacation packages, cruises, air, and other add-ons. However, consultation fees and service fees are becoming more common as agencies try to diversify income sources to become less dependent on supplier commissions.

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What sets our travel advisors apart
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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.

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Don't tip your travel agent. “An adviser's job is to create memorable trips for you and they get compensated for their service, so they don't expect more money on top of that,” she said.

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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.

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You will share your commission with a host agency This is called a commission split. A typical commission split is the 70/30 split. This means that you keep 70% of the commission you earn from your sales and your host agency gets 30%.

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AAA Travel Services Plus, as a AAA member, you will enjoy exclusive savings and discounts on everything from passport services to cruises, tours and vacations. Whether you're looking for a relaxing beach getaway or an adventure-packed trip, AAA can help you plan the perfect vacation that fits your needs and budget.

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When we say our vacation packages are all-inclusive, we really mean it. Aside from accommodations, airfare and meals, AAA tour vacation packages are also customizable to allow you to get the most out of your tour and ensure you have an unforgettable vacation.

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Word of mouth is still a good way to find out about a travel agent. Personal recommendations from friends and family are a good source. But you can also look at what other people think about them online. Get a pretty clear idea, and in particular see what previous customers say, see if they are satisfied.

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Booking directly with the resort itself is one of the best ways to ensure you travel and relax on the days you desire. Travel Agents are often paid on commission, and may not have your best interest in mind. They may push a certain resort or package deal on you which benefits them, but not you.

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