How does a travel agency make money?
Question by Mike: How does a travel agency make money?
I’m planning a trip, and I called a local travel agency. I have never used one before, and assumed they would charge me some sort of fee to organize this trip. Apprently, there are no fees. Is this normal for a travel agency? If so, how do they make their money? Is using a travel agency a good idea, or should I just make all the plans myself?
Best answer:
Answer by Tom
A travel agent/agency sells a holiday package put together by a tour operator. The tour operator gives the travel agency commission for each sale of their package they make.
What do you think? Answer below!
Nothing is ever free. Some how some way they will get money! The could book you will places and transportation they are involved with and make money by sending you through them. I would just do it yourself, that way you dont miss nothing, you dont have the time!
The tour operator or airline gives them a commission.
However, nowadays, unless you’re the president of Expedia or Travelocity, you’re not making any money as a travel agent.
Travel agencies throughout the world work this way, and travellers are not charged for agency services. Airlines, train companies, hotels and hostels, travel insurance companies, all pay a travel agency for any bookings made.
While the agency can advise prospective travellers on the different options available, the agency must also book exactly what the client wants. So agencies are not allowed to book something you don’t want, such as a more expensive hotel or travel options you’re not interested in.
If you’ve never organised travel before, it’s a good idea to start out with a travel agent to get an idea of what’s available. You can then decide whether or not to book with the agent or book it all yourself.
They have excess prices on their tickets.
Yup definitely they will take money to guide you about the trip. And it is a good idea to have a tour operator along with you who has all the details of area you like to visit. I have a blog http://kesari-tours.blogspot.com/ please go through it , you will find it interesting.
Hey Mike
These days the travel industry is in a lot of flux.
Traditionally, travel agents have made the majority of their money on commissions paid by airlines, hotels and tour operators. As commissions began to shrink (and traveler questions became more complicated), travel agents have had to find alternative sources of revenue.
A great deal of travel agents have started to charge fees for their services, sometimes a flat fee, sometimes an hourly rate.
However, there are still plenty of agents who use a more traditional model and make all their money off the commissions from the travel partners they’ll book. A very few agents are making the transition to fee-based services, but are nervous about telling clients about their new fee structure, so that can sometimes (in very rare cases) make for an unpleasant surprise for the traveler.
I’d recommend you be straight up, and ask them, do you charge any fees? They won’t be offended by the question, and that way you’ll have all the information you need up front.
As for needing a travel agent, that’s up to you. Many travel agents can really help augment a trip, especially if you’re going to a place you’ve never been before or one that involves a lot of complicated details. Also the agent can save you a ton of time (most people use some 20 something websites to book one trip).
Also if something goes terribly wrong (think volcanoes in Iceland or ships stranded in a foreign port), the agent can be an amazing resource in helping you take care of problems that crop up.
Most importantly, travel agents almost always have better relationships with suppliers than a general traveler does. So your agent may know about upgrades or better deals that you’d never be able to find on your own. While I’m not promising you’ll get an upgrade, if you and your travel agent forge a relationship, it is quite possible you’ll be able to reap unexpected benefits down the line.
Good luck and happy travels
Monica, Online Editor
http://www.travelagewest.com