How Do Travel Agents Make Money?

A group of Dream Vacations travel agents

Today, a trip around the world is just a Google search away. But the time it would take you to book a trip like that, not to mention the uncertainty is simply not worth the risk of going at it alone.

This is where the expert guidance of a travel agent comes in hand – and the best part, they offer excellent service and time savings at no extra cost. Travel agents don’t make money by charging their customers – they make money from the travel suppliers instead. Travel agent commission is a real thing, and becoming a travel agent can be a lucrative and valuable career move. How do travel agents make money? Well, we’ve got some answers for you.

How Much Do Travel Agents Make per Booking?

The amount of money made per booking depends on the travel agent commission. A commission is paid to the travel agent from the booking organization as a thanks for recommending their product (i.e. hotel, cruise ship, tour operator, etc.) to an interested traveler. For example, a travel agent may recommend a client book with a specific cruise line or hotel. After the booking is made, the travel agent may get a cut of the fees from the cruise line or hotel as a thank you for sending them business and incentive to send more interested travelers their way again.

But how much commission does a travel agent make? The amount of money travel agents make per booking depends on a number of factors. First is how big the transaction is. Travel agents will generally make more as their client spends more. Another factor is how much the hotel or other travel organization is willing to pay or share.

However, an independent travel agent’s commission rate may not be as high as travel agents working with the large host agency. For example, the host agency like Dream Vacation Franchise which has immense buying power negotiates the highest commissions on behalf of the travel agents. When you work with the host agency with a large market share, suppliers can provide agents with the highest commission tiers. Bottom line – join a reputable powerhouse like Dream Vacation Franchise, and you’ll earn more.

If you decide to become a travel agent, the best way to make money is to work with an established agency that has a strong relationship with hotels, resorts, cruise lines, and more. These organizations can pay a higher commission because of their partnerships. For example, Dream Vacations Franchise is part of the world’s largest seller of cruise vacations; with that buying power they have negotiated the highest commission rates out there for travel agents.

Do Travel Agents Charge for Their Services?

Another way travel agents make money is by charging a fee for their services. Researching the best cities to visit in Morocco, arranging tours of the Sahara Desert, and searching for deals on flights and lodging can take hours of time. Sometimes travel agents charge a fee for their time. Travel agents can track down reservations not known or available to the general public and are sometimes on call during the trip to help with any problems. The research that travel agents do saves travelers time, because they don’t have to do the work themselves and money because the travel agents are experienced in finding deals and have the patience to look for them.

Some travel agents work as part of a large corporation, arranging travel for executives and other employees. These agents typically don’t charge fees or earn commission; they work on the company payroll and receive a check as other employees do.

how much money travel agents make will depend on what kind of agent they are — Corporate, independent, or franchisee — How many bookings they make each year, and how much they charge for their services or make on commission. If you carefully choose the right organization or franchise to affiliate with, it will make a big difference to you.

Do Travel Agents Make Commission or Receive Tips?

While airlines no longer offer travel agent commission, other travel organizations and businesses do pay agents a cut of their bookings. For example, a travel agent may make a commission by selling travel insurance, cruise vacations, hotel bookings, resort bookings, and tours or other experiences. Travel agents drive business to these tourism and travel businesses, who give them a cut of the bookings to encourage future referrals and maintain a positive relationship. Travel agent commission systems work well for travelers, who get top-notch service at a good price; travel companies, who get a steady stream of paying customers; and travel agents, who make good money providing their services.

Some travelers do tip their travel agents. This is especially the case if the travel agent does not charge any service fees, and when the agent offers great service.

How do Dream Vacation Franchise Travel Agents Make Money?

As owners of a Dream Vacations franchise, travel agents earn 100 percent of their sales commissions. Which are higher than working independently or with another company — Thanks to partnerships and negotiations DVF has made with top cruise lines. Travel agents who own their own franchise through Dream Vacations are paid only through commissions; there is no annual salary or hourly rate.

Travel agents with Dream Vacations may build their own businesses, hiring associates and choosing how to pay them—either on commission or providing an hourly wage. Many agents collaborate with partners, spouses, friends, and roommates to build their own travel agency franchise business.

As a franchise, Dream Vacations franchise is highly regulated by the Federal Trade Commission (FTC) and can’t legally make any claims about earnings. Before looking into a franchise opportunity with any franchise, including Dream Vacations, be sure to review the financial performance information in the franchise company’s FRANCHISE Disclosure document.

How Do I Become a Successful Travel Agent from Home?

Working as a travel agent can be a fulfilling career that is both interesting and rewarding. To become a successful travel agent from home, start with these steps:

  • Request information online about the Dream Vacations Franchise opportunity. Additionally, learn about the profession. You’ve already begun with important questions such as, how do travel agents make money? And, how much commission does a travel agent make? You can answer these, and you’re well on your way to researching what it’s like to be a travel agent.
  • Obtain a travel agent license or certificate. Invest in your education and in your travel business now, and you’ll see bigger payouts in the end. Dream Vacations Franchise offers all the tools and training you need to become a licensed travel agent.
  • Build a clientele: Market your business, reach out to friends and associates, and start promoting yourself.
  • Watch your business flourish!

Technology is definitely changing how people travel. But that doesn’t mean that there isn’t space for qualified, connected travel agents. Vacationers still want to take the headache out of travel, and are looking for someone to help them plan a dream vacation. As a travel agent, you can help people connect with travel products that meet their needs and price points—all while earning money to help your family and fund your own world travels.

If you love to travel, have an interest in learning more about the hospitality industry, and want to earn money to travel more, you would be a great candidate for becoming a travel agent. Learn more about the advantages of working as a Dream Vacation franchise owner, and reach out today for more information about how to get started.