do travel agents get paid hourly

How Do Travel Agents Make Money? [The Travel Agent Business Model]

In the past, travel agents made money from commissions from airlines and hotels. And while this is still a key revenue source for travel agents, the increasing prevalence of online booking has made them look for new sources to diversify their income. So, how do travel agents make money today?

Below, we explain the different ways in which independent professionals and online agencies generate revenue in the ever-changing travel industry. By understanding the rewards that come with taking on the role of a travel agent, you will gain insight into this often-overlooked career path and how it could fit into your own life goals.

How Do Travel Agents Work?

Travel agents work to provide their clients with a stress-free and personalized travel experience by taking care of all the details and providing expert advice and support. Travel agents can work independently or for travel agencies. 

The key role of a travel agent is to assess their client’s needs and make the necessary recommendations and arrangements based on them. Services provided by travel agents include:

• Consultation – Determining the client’s travel needs, budget, and preferences. This includes asking questions about the purpose of the trip, the desired destination, preferred travel dates, accommodation preferences, and any specific requests or requirements.
• Research – Identifying the best travel options available for the client (flights, hotels, rental cars, tours, and activities).
• Booking – Making travel arrangements on behalf of the client.
• Confirmation – Verification of all details related to the booking, including providing the client with the necessary information, such as flight times, hotel reservations, and tour details.
• Follow-up – A travel agent may provide advice on travel visas, travel insurance, packing tips, and other travel-related issues.

How Do Travel Agents Get Paid?

The most common way a travel agent gets paid is from commissions from airlines, cruise lines, or tour companies for packages sold. The commission rate varies depending on the type of travel and the agreements with travel providers. 

Additionally, travel agents get paid a fee by their clients for their services. The amount of the service fee is entirely up to the agent and is related to the type of services provided. Typically, it’s charged for arranging some or all segments of the travel.

If the travel agent is employed by an agency, then just like any other employee, they’ll receive a salary or hourly wages.  

Net price overages are also an option for many agencies. So, for instance, if an agent books a certain number of hotel rooms, the vendor gives them a discount which is then marked up, and the difference is kept by the agency. 

Some travel agents may also earn additional revenue by offering travel insurance or upgrades to accommodations or transportation.

Travel Agent Business Model

The simplest way to describe the business model of travel agents is to go by the main source of income. Based on this, there are two types of business models:

• Commission-Based 

The commission-based business model allows travel agents to earn a percentage of the total cost of a travel package, such as flights, accommodations, and activities. Depending on whether the package is domestic or international, travel agent commissions may be as low as 5% or as high as 20% or more. 

• Service-Fee-Based

In a service-fee-based business model, travel agents charge their clients a service fee for their expertise or assistance in planning a trip. If the travel agent is in the role of an advisor, they may recommend a popular destination or deal on a specific trip. 

Alternatively, they may provide help for any given element of the trip, from booking a hotel room or flight to booking a spa treatment. The fee charged can be a flat rate or a percentage of the total trip cost. 

It’s important to note that with the rise of online booking platforms, the travel industry has become more competitive, and many travel agents use a combination of commission and service fees, plus access to exclusive deals and pricing. This way, they’re able to offer their clients a unique and personalized experience while staying competitive in the market. 

How Travel Agents Make Money

Here are the most common ways travel agents make money.

1. Travel Insurance Sales

Travel insurance is essential to ensure your trip is protected in case of any unexpected changes or emergencies. Travel agents can sell insurance policies for their clients, which provide coverage for things like flight cancellations, lost luggage, and medical expenses. Depending on the policy sold, agents can earn up to 40% in commission.

2. Cruise Sales

Travel agents may receive a high commission or bonus on cruises based on the number of rooms booked by their clients. Typically, the commission rate for cruises is around 12%. This is because a large number of passengers are required to fill a ship.

Note that a significant portion of clients’ bills is taxes. For instance, a booking for cruise berths priced at $4,000 might include taxes amounting to $1,500. When booking cruises, agents earn commissions only on the portion of the cost that is not taxed.

3. Car Rental

Depending on the car rental agency, agents may earn between 8% to 10% commission on bookings. Other travel agents charge a flat fee of $20–$40 for making the reservation with the car rental company. 

The car rental industry is highly competitive, so the key here is for travel agents to establish relationships with different companies and shop around for the best rates for their clients.

From visiting vineyards in Tuscany to exploring the rainforest in Costa Rica, tours are an excellent way for clients to get the most out of their travels. Agents can earn commissions ranging between 10% and 20% when they book a tour package and may also receive incentives such as free rooms or discounts on future trips.

5. Premium Listings

Car companies, airlines, and cruise lines pay handsomely for premium listings on travel agents’ sites. This gives the company more visibility and may help them generate more revenue. Typically, agents negotiate a commission for booking trips with these companies or charge a flat fee for providing access to the website.

6. Vacation Packages and Deals

If a travel agent is employed, they can use the buying power of their agency to get discounts and special offers which they can then pass on to their clients in the form of reduced hotel rates, exclusive deals, and other incentives. Usually, the commission rates for booking vacation packages range between 10% and 15%.

7. Niche Travel

Focusing on a niche area can be highly profitable for travel agents because it allows them to refine their expertise and cater to clients seeking a specific type of trip, like wedding and honeymoon or sports travel.

Some agents have two distinct branches of their business. The first covers travel to various destinations worldwide, while the second specializes in a particular theme like yachting, wine, or culinary adventures. For instance, an agent could sell packages for resorts and cruises while also organizing unique wine or food-related trips.

8. Mode of Travel

Vacationers have options beyond just using traditional modes of transportation like planes, trains, and cars. For instance, they can choose to explore an area by cycling from one spot to another. It’s the agent’s responsibility to arrange the logistics of the trip, from transportation to the actual adventure.

9. Corporate Travel

Many travel agents make their money by organizing custom trips for corporations. From organizing team building, corporate retreats, or special rewards trips, corporate travel is an excellent source of revenue and provides the opportunity for the agent to make long-term relationships with companies.

Travel agents may be paid an hourly fee for their services and/or a commission on airline tickets, cruises, and hotels and resorts. They could also receive incentives to book certain properties or activities, such as golf courses or spa treatments. 

How Much Do Travel Agents Make Per Booking?

A travel agent’s commission may be as low as 5% or as high as 30% and depends on various factors such as the type of booking, the element of travel, and the vendor they book with. In addition to commissions, travel agents’ income can come from other sources, such as service fees. 

For example, if a travel agent earns a commission of 10% on a $2,000 booking, they would make $200. However, if the booking is a complex itinerary, such as a multi-country trip, and the travel 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 be paid by the hour, and it’s a more common type of compensation for travel agents who work for larger agencies. The average hourly pay of travel agents in the US currently stands at $17.71 and goes as high as $28 per hour in states like New York, California, and Nevada.

However, travel agents are typically compensated in different ways, and their pay structure may depend on the company they work for and the type of travel they book. And while some are paid on an hourly basis, most receive a salary or are paid on a commission basis.

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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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THE JOURNAL

Travel Advisor Resources

How Much Do Travel Agents Make? Fora’s Full Guide

The Modern Travel Agency

Fora Travel

https://www.foratravel.com/the-journal/how-much-do-travel-agents-make

How much do travel agents make? What factors go into how much a travel agent — or as we prefer, travel advisor — earns? We’re telling all. 

Alternatively, you can learn exactly how much you can make by becoming a Fora Advisor . Sign up today and we’ll answer all your questions. 

First, is there a high demand for travel agents? (Hint: yes!)

And demand is growing. Since travel restrictions were lifted after the COVID-19 pandemic, more people than ever are going on vacations and business trips (check out jobs where you travel ) — more importantly, they’re smarter about how they go about it. And there’s no better way to book a trip than to use a travel advisor to get awesome perks, deals and the kind of personal touches that turns a good trip into a great one. 

(Wondering how to become a travel agent ? Our guide has you covered.)

How do travel agents get compensated?

There are a few different ways travel advisors earn income, and the source typically depends on the service. Here’s how it breaks down.

(Wondering about startup and upkeep costs? Check out our guide to how much it costs to become a travel agent .)

Travel partners (or suppliers, in industry lingo) pay commissions: think hotels, travel insurance, rental cars, cruise incentives, tours…

Image courtesy of Turtle Bay Resort

A large portion of a travel advisor’s income comes from commissions, which are a percentage — usually between 10 and 15 percent — of whatever service their client is benefiting from, be it a hotel reservation, travel insurance and so on. (Here are 5 types of bookings you can make as a Fora Advisor that aren’t hotels .)

Suppliers, such as hotel brands, cruise lines and rental car providers pay these commissions; and Fora Advisors don’t charge their clients for commissionable services. In other words? Fora Advisors get paid, and their clients don't have to pay anything extra.

The cool thing is that many of the best hotels and services know that happy travel advisors will send new clients back, so the suppliers will throw in complimentary perks to sweeten the deal. This is why Fora Advisors can offer the same rate as an online travel agency for a hotel room at, say, Virgin Hotels New Orleans (one of the most unique places to stay in New Orleans , by the way), yet offer cool extras for their clients at no additional cost. 

Our guide to how much do travel agents make per booking gets into the details of the process if you’re curious.

Clients pay planning & service fees: non-commissionable bookings, vacation packages & custom itineraries…

Besides commissions, planning and service fees are the other major sources of income for travel advisors. 

Why might advisors charge fees? In most cases, an advisor may charge a fee to develop a custom itinerary for a client. In this case, the client compensates the advisor for their time, much in the same way one would pay a financial advisor. 

At Fora, it’s generally up to the advisor to decide how much to charge (if at all) for custom itineraries.

How much do travel agents make exactly? It depends

There’s no simple answer to this question, because Fora Advisors have the flexibility to work as much or as little as they want. Some treat their advisor position as a travel side hustle , only spending a few hours per month on booking rooms for friends and family, while others make a very lucrative living. 

Can you make ‘good’ money as a travel agent? You bet

Is being a travel agent worth it ? Fora Advisors will say yes. Many top Fora Advisors earn six figures per year. Again, when you join Fora, you can work as much or as little as you'd like, so the money earned will vary, but regardless, we'll teach you how to maximize your earnings.

Ready to start your lucrative career in travel? Become a Fora Advisor today .

What’s the average travel agent salary in the USA?

We can’t speak for all travel agencies, but some of the top Fora travel advisor salaries are measured in seven figures. And while such a salary is quite a bit above average, these top earners put in a lot of work, and have been doing this for a while.

On the flip side, plenty of Fora Advisors treat their travel business like a side hustle on top of their day job, earning an extra couple of hundred to several thousand dollars per month.

Factors that might affect how much a travel agent makes

A lot of factors go into how much travel agents make per month. Here are some of the most common.

Remote vs. brick-and-mortar travel agencies

There are a lot of advantages to becoming a travel agent online , but the biggest might be the substantial difference in overhead. 

Travel agents who work from brick-and-mortar establishments have to pay rent or property taxes for office space. Remote travel agents only have to worry about internet connection and a comfy spot to sit.

In either case, you have to factor in your expenses when calculating how much you’re making as a travel agent, and remote agents have a clear advantage.

Independent vs. employed travel agents

Let's break it down. There are essentially three different types of travel agent jobs .

Employed travel advisors — that is, advisors who work for a company that sells travel — typically earn base pay, but there are a lot of trade-offs that make this business model less attractive to the advisor. Most importantly, there may be caps on the number of clients you have and / or reduced commissions that severely impact your bottom line. 

One potential positive: marketing resources may be available through the company, but oftentimes, they’re not exactly modern in their approach (unlike Fora's!). And finally, employed travel advisors generally have to adhere to a traditional nine-to-five schedule — with little flexibility.

Fully independent travel advisors, on the other hand, can enjoy all the flexibility they want. But, as business owners, they also have to consider things like licensing fees, marketing materials, business insurance and so on that employed advisors don’t have to worry about. These fees and extra expenses can dampen profit margins, and can be prohibitive for prospective advisors who don’t necessarily want to risk the startup costs. 

Our guide on how to start a travel agency from scratch provides more details, but we’ll be frank: there’s a much easier path to making great money as a travel agent.

The third option (and sweet spot)? Join Fora. Fora Advisors are technically independent travel agents — sometimes referred to as independent contractors — except they operate under Fora’s licenses and have access to an incredible wealth of resources (including extensive travel agent training ).

Plus, thanks to Fora's global network of travel partners, our advisors unlock tons of exclusive client perks at thousands of hotels. 

Want to learn more? Here’s how to become an independent travel agent through Fora. 

In a literal sense, how do travel agents get paid?

Across the industry, travel advisors are paid via the old-school, commission-check-in-the-mail method. At Fora, travel advisors are paid via direct deposit. And our advisors don't have to chase down their commission payments. We take care of all that.

Read about how travel agents get paid for more details.

Are there ways to maximize the earnings a travel agent makes?

Certainly. How much a travel agent makes depends heavily on factors like their niche, host agency (if applicable) and — of course — travel planning skills.

Can’t wait to start your travel career? Become a Fora Advisor .

1. Consider adopting a niche

A niche can go a long way in boosting how much a travel agent makes because it gives them a focus. Rather than trying to be good at everything, niche travel agents become great at only one or two aspects of travel — at least to start. This allows them to build a wealth of knowledge in their niche that will impress clients, potentially drawing in business from new clients seeking a similar trip. 

At Fora, there’s no limit to the type of niches an advisor adopts. You could specialize in selling cruises, Disney vacations, trips to a certain location (such as Las Vegas or Barcelona) — whatever you’re most passionate about.

(BTW: learn how to become a cruise travel agent or how to become a Disney travel agent .)

2. Expand your partnerships with hotel reps, tour operators and other travel-related services

Image courtesy of The Rubens at the Palace

Incentives like VIP hotel perks — complimentary hotel upgrades, meals, etc. — give travel advisors an edge over online travel agencies (OTAs) like Booking.com. As such, expanding these partnerships allows travel advisors to offer a wider range of trip benefits while remaining competitive. 

Fora Advisors can unlock awesome perks for their clients at over 4,500 hotels around the world and counting. And Fora’s HQ is constantly working to expand its network of partnerships.

3. Work with a travel company that cares about your success

This may be a shameless plug, but our advisors will back us up on this one. Just check out our advisor-sourced guide to the best reasons to become a Fora Advisor . 

In any case, your choice of host agency is critical. Plenty of old-school agencies essentially throw their advisors into the wild, only stepping in if sales quotas aren’t met.

At Fora, we offer unwavering support to all our advisors, plus loads of awesome resources, including a bevy of marketing materials, thorough travel agent training and access to an engaged community filled with travel experts. 

Here are a few insider tips for how to be a successful travel advisor . 

4. Give your clients the star treatment (because thoughtful advisors will get repeat business)

Possibly the most important factor affecting how much a travel agent makes: their customer service skills. 

The simple truth is that clients will only use your services if you actually help them. Putting the time and effort into making sure your clients have an amazing experience will pay dividends later. Not only will you likely win their future business, but you could win the business of their family members, friends and peers, too. 

(Read about how travel agents get clients .)

5. Keep at it: being a travel agent can be stressful, but so worth it

Finally, patience and dedication have a dramatic effect on how much travel agents make. 

Chances are, you’re not going to start with a dozen clients planning 20 trips. It takes a lot of time and effort to get to that point, but if you can, you’ll find that travel planning can be a very rewarding career. 

Need to know more? See what it takes to become a travel agent .

How much do travel agents make? Ask (or become) a Fora Advisor

Ultimately, the best way to find out how much you can make as a travel agent is to try it out for yourself. Sign up to become a Fora Advisor today .

Not quite ready? Check out these travel advisor resources, too:

How to Market Your Travel Business Like a Pro: Tips from the Experts  

How to Become a Luxury Travel Agent: the 2023 Guide  

Travel Agent Certification: Options and FAQs  

Debunking 3 Myths about Becoming a Travel Advisor  

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Breaking it Down: What’s in A Travel Agent’s Salary?

Fora Travel

So, you have a passion for travel. You love helping friends and family plan their vacations with cool tips and recs, and you’re thinking about turning this passion into a career (or side hustle). But you may be wondering how to monetize, and asking “where does a travel agent salary come from?”

We’re breaking it all down below. Plus, you might be surprised to learn that earning a salary as a travel agent is seamless, especially with the support and tech tools of a modern travel agency like Fora.

(Just getting started? Learn how to become a travel agent .)

The 2 most common ways to earn a travel agent salary

The vast majority of revenue a travel agent pulls in comes from two sources: commissions and service fees. Let’s break it down.

1. Commissions: the bread & butter of a travel agent’s salary

Commissions are paid by suppliers (such as hotels, cruises, tour companies) to a travel agent, for booking their services on behalf of a client. The commission is a percentage of the sale. 

Here’s some behind-the-scenes. Travel industry suppliers pay advisors commission, because booking with a travel agent directly delivers a higher quality, more reliable client, as compared to big travel sites like Booking.com. Additionally, the supplier is able to keep more of the profit than they would if the client booked through an online travel site, which are known to take a much higher distribution fee. More importantly, if your clients are happy with the service, you’re more likely to send future clients back to the same supplier, setting up a potential revenue stream for them. 

This transaction model is also far less expensive than what the supplier might have paid for traditional advertising, so it’s an easy expense to incorporate the travel agent in.

What’s commissionable? Hotel bookings, travel insurance, car rentals, tours… (hint: a lot)

All sorts of travel experiences are commissionable, not just hotel reservations. Car rentals, chauffeur services, event tickets, cruises — the list goes on. Check out Fora’s guide to the types of bookings you can make as a Fora Advisor (that aren’t hotels) for more details.

It’s also worth noting that the best travel agents earn their salary smartly, and sometimes that means avoiding less valuable commissions. Booking economy airline tickets for a client, for example, can often be more trouble than it’s worth. The margins are slim and the complexity of air travel — delays, cancellations — means booking flights for a client can introduce more problems than it solves.

2. Planning & service fees: the icing on the cake of a travel agent salary

Planning and service fees account for how travel agents make money from just about everything that’s not commissionable. It’s the money (aka travel agent salary) clients pay you to provide something of value, such as building a custom itinerary or making a reservation for a travel experience that isn’t commissionable — you should still be compensated for your time and expertise, after all. 

Why do travel agents charge fees for things like custom itineraries? 

Again, this goes back to being paid for your efforts. 

The cool thing is, many clients are happy to pay for your expertise. You’re adding value to their trip they likely wouldn’t have received otherwise, whether it’s the convenience of not having to do the legwork themselves (freeing up their time), highlighting some sort of experience they wouldn’t have encountered or providing your insider intel and expertise honed from personal experience or research.

How much money do travel agents make?

In addition to the question, “what’s in a travel agent’s salary?” you’re probably wondering “how much do travel agents make?” 

We can’t speak for other agencies, but Fora travel advisor salaries vary wildly, depending on whether it’s a full-time focus or side hustle. At the end of the day, how much you earn is correlated to how much you book. For instance, if you book a family cruise in the tens of thousands of dollars, your commission will be substantial. You could also get the same commission by handling individual hotel bookings, but at a higher amount. 

Top travel advisors can make well into six figures. Meanwhile, some advisors focus on booking travel for their friends and family purely as a side gig, and may earn an extra $10k each year, for example. There’s no wrong way to make money as a travel agent (with Fora, at least).

And remember, building your book of business is an entrepreneurial journey. It takes time; you'll start smaller but can grow over time. And at Fora — between our resources, tools & community, – we're here to support you every step of the way.

How much do travel agents make per booking? Do travel agents get paid hourly?

While rare, some agencies do pay their travel agents an hourly rate as part of a travel agent salary. At Fora, we prefer flexibility, meaning our advisors work whenever they want, and as much as they want. A lot of Fora Advisors are part-timers who enjoy careers in other fields.

Fora Advisors make their travel agent salary via commission, which is split between the advisor – Fora collects a small percentage. Our entry-level commission split for Fora Advisors is 70%.

As for how much travel agents make per booking , traditional commission rates hover between 10 and 15 percent, however, they can be as low as 7% and even as high as 28% (we see you, cruise companies).

To break it down with some easy numbers, if you’re booking a hotel room that costs 1k per night. With an average commission of 15%, the total amount earned is $150. Fora Advisors would keep $105 of that. Fora keeps $45 as the host agency.

And remember: unlike many other host agencies, Fora handles all commission tracking and payments (thanks to our all-in-one, integrated booking platform ), so you get paid without lifting a finger. 

How do Fora Advisors maximize their commissionable revenue?

There are a lot of ways Fora Advisors boost their travel agent salary. Here’s how.

(P.S. Looking for more reasons to become a Fora Advisor ? Hear what existing Fora travel advisors have to say.)

Enticing travelers with premium incentives (like hotel perks) is one of the best ways Fora travel agents earn their salary

Through a variety of supplier partnerships (as of publish date, over 4,500), Fora Advisors offer awesome perks to their clients that sweeten their travel experience. 

For example, some of the perks at the coolest hotels in Downtown NYC include complimentary hotel credits that can be put toward spa treatments or meals. This means the client is getting much more value out of their stay (complimentary meals, upgraded rooms, VIP status, etc.), so it’s a win-win.

Perks and incentives aren’t limited to hotels, by the way. Virgin Voyages travel agents , for instance, can score early ship boarding and onboard credits for their clients.

Some Fora Advisors have a niche, like group, corporate or other specialized types of travel

A niche can be a great way for travel agents to make a higher salary.

Luxury travel agents cater to discerning explorers who might prefer to stay at world-class hotels (like ritzy hotels in Dubai or Grand Cayman resorts ). Disney travel agents earn commissions on entire vacation packages. And travel agents who specialize in group bookings can pull in substantial commissions for booking event venues, whole hotel floors and so on (read more about mastering the art of group bookings ).

As a host agency, Fora provides a ton of support to help travel agents make money, from training to lead generation

With rookie-to-advanced travel agent training , and a suite of tools ranging from lead-generation opportunities to custom marketing collateral to a seamless in-house booking platform, Fora is committed to helping our advisors succeed. We’re with them every step of the way.

In other words? We take care of the logistics (invoicing, commission payouts) and provide all the groundwork for how to be a successful travel advisor , so you can focus on the fun stuff.

… and offers super-fast payments

Fora makes it clear that they expect speedy payments from suppliers, and Fora Advisors are often paid before we receive a check. Likewise, our payments are the fastest in the business. You can expect commission payments twice monthly, via direct deposit.

(For the exact process, learn how travel agents get paid .)

Ready to start earning a travel agent salary? Become a Fora Advisor today

Want to find out how travel agents make money firsthand? Become a Fora Advisor and start your career — or side hustle — in travel today.

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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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Hourly Wage for Travel Agent Salary in the United States

How much does a Travel Agent make hourly in the United States? The average hourly wage for a Travel Agent in the United States is $28 as of March 26, 2024, but the salary range typically falls between $25 and $33 . Hourly rate can vary widely depending on many important factors, including education , certifications, additional skills, the number of years you have spent in your profession. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target. 

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What Is a Travel Agent and How Much Do They Get Paid?

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I have a passion for the English countryside and especially anywhere in Yorkshire. I drink far too much Yorkshire tea on my travels and even take it with me when abroad. My passion is to share travel experiences with my readers which may help them plan their holidays and save money.

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If you love to travel and are looking for a new flexible career with work-from-home opportunities, being a travel agent may be the perfect fit.

Understanding what working as a travel agent involves and the earning potential in this career can help you decide if this job is truly right for you.

In This Article – We’ll explain what a travel agent does, how much they get paid, and share tips for breaking into the travel sector. 

Table of Contents

What is a travel agent?

A travel agent is a professional that markets and sells holidays to customers.

The role mainly involves finding out where a customer would like to travel and the activities they would like to do and organizing a trip including transfers, flights , accommodations, and an itinerary of tours or other experiences.

The role requires in-depth knowledge of the travel industry and a wide range of destinations, with the travel agency arranging individual aspects of the trip or selling a package holiday with all-inclusive travel, accommodation, and food costs.

Travel agents work in a variety of locations and can operate independently or as an employee of a travel company. 

How much do travel agents get paid?

Working as a travel agent is primarily a sales role and most times offers the potential for uncapped earnings and commissions.

Salaries vary by location, company, and level of experience a travel agent has. 

In the US – The national average salary for travel agents is $44,209 per year. 

According to Indeed , UK travel agents earn an average annual salary of £19,051. 

Many travel agent roles come with great benefits like significant discounts on travel for themselves and loved ones and generous bonuses if they meet or exceed company targets. 

What are the typical day-to-day responsibilities of a travel agent?

Travel agents have a customer-facing role that requires strong sales skills.

In addition, employers expect these professionals to coordinate detailed itineraries for their clients, paying great attention to details.

Here are some of the primary duties of a travel agent: 

• Consulting with clients to understand their travel requirements.
• Working with each customer to create a holiday package or itinerary that is within their budget.
• Contacting airlines and accommodation providers to arrange customer bookings and transfers.
• Contacting leisure companies and tour providers to schedule activities for customers during their holiday.
• Assisting customers with queries and complaints.
• Rearranging canceled flights or hotel bookings. 
• Processing customer payments. 
• Helping customers who have problems or emergencies while they are on holiday.
• Advising clients on travel documentation required for their holiday. 
• Arranging travel insurance that is appropriate for the client’s trip.
• Reviewing sales targets.
• Undertaking online and offline marketing activities. 
• Completing administrative tasks. 
• Keeping abreast of the latest travel advice so that customers are correctly advised before travel. 

Most employed travel agents work full-time

Travel agents work hard and clock up a 37 to 40-hour week, perhaps more if they are self-employed.

They have to be available to their customers and may have to work evenings and weekends to do this.

Alongside the sales role, there is a heavy administrative workload so excellent time management skills are essential. 

Travel agents can also work from home

Many travel agents embrace working independently or as part of a franchise.

This flexible arrangement enables travel agents to have complete control over their time and work from home without the overheads of a shop or office.

The travel industry has a wide range of digital tools that travel agents can use to coordinate client itineraries.

These professionals can also build their own relationships with travel sector service providers to procure exclusive rates for their clients.

How to become a travel agent 

A career as a travel agent does not require specific qualifications but demonstrable interest or experience in tourism and hospitality is a bonus.

Here are the steps you need to take to become a travel agent:

1. Complete your GED : at a minimum, you will need to have finished high school and be able to show proficient literacy and numeracy to your prospective employer. 

2. Consider a college degree : a college degree is not essential but subjects like tourism, business, or marketing could make you a desirable candidate for a travel agent role.

3. Look for work experience or internships with travel agents : work placements help you learn more about the role of a travel agent and accrue valuable experience and contacts. 

4. Undertake an apprenticeship : there may be opportunities for you to work as an apprentice in travel agents, gaining experience and a credible vocational qualification. Many apprentices get offered a full-time role when they complete their training. 

5. Apply to entry-level travel agent jobs : create a CV and cover letter that sell you as a strong candidate for travel agent roles and apply to relevant vacancies. You can contact the HR department of larger companies to find out about travel agent career opportunities.

What are the career prospects for a travel agent?

This is a very flexible career that offers a range of career tracks depending on whether you work for an employer or are self-employed.

In an employed role, you have the scope to become a branch manager, travel director, or operations manager.

Alternatively – You can establish and build your own business. Meet or exceed sales targets to build your reputation and maintain high customer service standards.

5 Transferable skills for travel agents

Employers expect travel agents to have a wide range of skills that can support them in providing services to customers.

Valuable skills include the following.

1. Sales and marketing skills

Working as a travel agent is primarily a sales role with set targets that must be achieved to earn a comfortable income.

To achieve this, they become experts in consultative selling.

Travel agents need to confidently market and sell travel experiences to their clients.

They ensure they are well informed about all the aspects of a destination or holiday package so they can handle any questions or concerns the customer has. 

2. Administration skills

Once holiday packages have been sold, travel agents have a heavy administrative workload, as they make all the bookings and transfers that make up the holiday.

This often involves liaising with international travel and accommodation providers and processing the financial transactions that ensure that all aspects of the trip are paid for.

3. Numeracy skills

Travel agents need good numeracy as they are required to calculate prices, track currency conversions and work out their own commission on the packages they sell.

They have a range of industry-related tools to assist them in doing this, but a head for numbers can help the estimate prices and the value they can deliver on the holidays they sell.

As they deliver holiday packages within a strict budget, they must keep track of their expenditure on the client’s behalf.

4. Communication skills

Strong communication skills are an asset in this career.

Travel agents need to be able to engage their clients and understand them to sell them a great holiday.

They are active listeners, which helps them fully comprehend what the client wants and the budget available.

They then can communicate to the client their advice and suggestions on suitable holiday packages. 

5. Attention to Detail

Great attention to detail is vital for preventing mistakes in booking and itineraries that could, at best, disappoint a customer or, at worst, put them at risk.

These professionals scrutinize every detail of the packages they put together to ensure that the holiday is suitable and delivers great value for money. 

In conclusion

Travel agents have an interesting career that requires motivation, imagination, and exemplary organization for success.

It is a great option for a career change and offers good remuneration if you work hard.

And it’s easy to see why it attracts people who love to travel!

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As an affiliate, we may earn a commission from qualifying purchases. We get commissions for purchases made through links on this website from Amazon and other third parties.

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Several countries now have bilateral agreements in place with the Russian Federation to allow visa-free travel to Russia for their citizens. Unfortunately, however, there is no indication that similar agreements will be reached with the EU, the US, or the UK any time soon.

If you are not a citizen of one of the countries below and do not hold a diplomatic passport, the only other way to visit the Russian Federation without a visa is on a cruise ship to St. Petersburg. This exemption allows you to stay in the city for up to 72 hours without a visa on the condition that you are sleeping on the ship and are accompanied at all times by a licensed tour guide. If your cruise calls in St. Petersburg for 48 or 72 hours, there are companies offering shore tours which include a day in Moscow.

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Nationalities which can travel to Russia without visas are divided into four groups with different requirements and different limitations on length of stay for each group. Even if you do not need a visa to enter Russia, you will certainly need a passport valid for at least six months after the date of your proposed exit from Russia, and you may require other official documents. You will also, like all foreign travelers in Russia, still need to register with the Federal Migration Service upon arrival.

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Citizens of these Balkan countries can also stay in Russia without a visa for up to 30 days, but must also show tourist documents (tourist confirmation and tourist voucher) or an official invitation to immigration officials.