How do travel agents make their money?

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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Commissions. The most important way that a travel agent earns money is by receiving a commission on travel sold. This can include a commission from booking flights, accommodation, tours, car rentals, entertainment tickets, insurance, and so much more.

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How much money do travel agents make? This comes down to certain factors such as the type of clients, level of expertise and the ability to offer specialized services. According to Indeed, the average salary of a travel agent in the US is $49,608 but there are many making up to six-figure incomes.

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How much does a travel agent cost? 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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Typically, agents employed by an agency have a salary and receive commissions and incentive pay as an additional source of income. Whereas, a self-employed agent is not paid a salary and is only paid commissions earned from suppliers and fees paid by customers.

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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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The commission percentage agencies earn depends on numerous factors, the most important one being which private contracts you have access to. Here's a general rule of thumb on the airline ticket commission range you can expect as a travel advisor: Domestic: 0-5% International: 10-22%

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  • You're Not The One Planning Your Travel. While not planning your travel is a pro to some, for other travelers, it's a major con. ...
  • You Add Another Person To The Equation. ...
  • You Actually Have To Find The Agent. ...
  • They're Not Great For Spur-Of-The-Moment Changes.


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Travel Agents Can Save You Time Booking a trip, with all its working parts, can take hours, especially if you're researching and comparing the best deals, said Avery Harris of Viking Travel. A travel agent will take much less time to help you find what you're looking for, Harris said.

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Hassle-free booking: A travel agent books everything for you, so you don't have to worry about the details. Plus, if you need to make changes, you just call your agent and he or she will handle it.

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National Geographic looks into whether or not people still use travel advisors, and the answer is a resounding yes!

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Getting to a Million: Top Travel Agents Share Tips for Six-Figure Sales
  1. Set goals. ...
  2. Education is key. ...
  3. Be in it to win it. ...
  4. Find a mentor. ...
  5. Choose your clients rather than vice versa. ...
  6. Mingle where the high rollers go. ...
  7. Consider working for someone else first, so you can start a business with a book of travel in hand.


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Both the luxury cruise market and niche cruise markets pay a true 10% base commission and can be highly lucrative niches. The River Cruise market is extremely popular right now and also quite competitive among river cruise companies and represents an excellent opportunity to earn very attractive margins.

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The main difference between travel consultants and agents is that travel consultants plan trips, while travel agents book them. Travel agents may be better skilled at locating the best prices for flights and hotels.

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In addition to earning a living and helping their clients arrange trips and vacations, travel agents can earn travel discounts for hotel stays, car rentals, cruises and tours.

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Take advice from friends and business associates who use an agent they trust and always check business profiles on BBB.org. Visit or call several agencies to find the one that best suits your needs. Consider everything from the appearance of the office to the agent's willingness to listen and answer questions.

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Does not follow up: A bad agent promises trip options and rates, but fails to deliver in a timely manner to the client, who then moves on to another agent. A bad agent also fails to follow up with the client after a trip that has been booked to see how it went.

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Travel agents make most of their money from commission, which is money earned on clients' bookings. Depending on the segment of travel and the supplier they book with, travel agents may make anywhere from 5 to 30 percent commission on bookings. It's in your best interest to find a good host agency that pays the most.

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May work full time or part time, but most work 40 hours a week. May work more than 40 hours a week if self-employed. May work evenings and weekends, when people have time to plan vacations.

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