A career as a travel advisor or agent is an exciting opportunity to combine your passion for travel with your professional life. But you might be wondering how exactly travel agents earn money and get paid. This article outlines how travel agents earn money through commissions and planning fees, plus how payments work and how much you can earn as an independent travel advisor.
Types of income for travel agents
Independent travel agents, whether they’re full-time or part-time travel advisors, earn money from primarily two sources: commissions and service fees.
Commissions
A commission is a percentage of the cost of booked travel, such as hotels,cruises, or tours. These commissions are the foundation of how travel agents earn money.
For example, when a travel agent books a hotel on behalf of a client, the hotel will pay that agent a commission based on a percentage of the room booking. Commission rates vary from property to property but tend to range between 5% and 10%. Fora Advisors earn 12% on average.
Outside of hotels, there are plenty of other aspects of travel that are commissionable for travel agents, such as rental cars, cruises, vacation packages, tours, travel insurance, yachts, and villas. Fora Advisors can also earn commission on certain premium flights through our flights desk.
Planning fees
Many travelers want help beyond just booking hotels and transportation. They want to get the most out of their travel experience by having a customized travel itinerary, with an expert doing the research, making recommendations, and completing the bookings . Many of these clients are happy to pay a travel advisor to make their trip go smoothly so they can relax and enjoy the experience.
In cases like this, travel agents can earn money by charging planning fees. The exact amount varies by agent, but for many Fora Advisors, a common starting point is $350 per week of travel planned.
Earn industry-leading commission
You already have a network of potential clients all around you. With our partnerships, you’ll unlock some of the best commissions in the industry—ensuring you earn more on every booking.
Your colleague’s spring break
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Average commission
Your split
Your friend’s hotel stay
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Your neighbor’s safari
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Your parents' cruise
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Your colleague’s spring break
Trip price
Average commission
Your split
Your friend’s hotel stay
Trip price
Average commission
Your split
Your neighbor’s safari
Trip price
Average commission
Your split
Your parents' cruise
Trip price
Average commission
Your split
How do travel agents get paid?
Travel agents are typically paid by their host agency. This is a type of business that provides support and resources to independent travel agents. By affiliating with a host agency, travel advisors gain access to a range of benefits, including enhanced commission rates from travel suppliers (the travel brands that advisors book with). Fora has established partnerships with over 7,000 hotels worldwide, granting our advisors the ability to offer their clients unique upgrades, perks, and benefits at these locations.
Every host agency has a different way of approaching payments. At Fora, we offer our travel advisors commission tracking and payment services; our finance team takes care of all the invoicing, tracking, and direct deposits—so our advisors can focus more on travel planning. This is especially helpful for part-time travel agents who want to cut down on the hours they spend on the administrative and financial aspects of their business so they can take on more clients.
Do travel agents ever get paid by clients?
Not directly. Payments are routed through the host agency. Hotels or other travel suppliers pay a travel agent’s host agency for booking rooms or other services on behalf of their clients. If a client pays for planning fees, this is also collected by the host agency.
When do travel agents get paid?
Travel agents typically get paid after their client completes the hotel stay or travel experience. If you’re in a career that pays hourly or by salary, getting used to a commission-based role may seem daunting, but the process is relatively straightforward.
A host agency has an IATA number, which an advisor uses to book travel in order to link that booking to the host agency. When a client completes their travel experience, the travel partner (or supplier) pays the host agency a commission. From here, the host agency routes the payment to the agent.
What other factors affect travel agent earnings?
Two more areas affect how travel agents get paid, at least in terms of their bottom line: travel agent certifications and trainings. The more certifications or trainings you complete, the higher your income potential. Fora offers in-house training ranging from the basics of becoming a travel agent to more advanced topics like group bookings and working with destination management companies (DMCs)—all included in Fora’s subscription fee.
Apply to become a Fora travel advisor
If you have a passion for travel and like the challenge of starting your own business with expert support, apply to become a Fora Advisor. We’ll help you build your travel business from the ground up, supported by our live and recorded training, collaborative community, and global travel partnerships.
