How do travel agents make their money?

[sorchamac]

Just wondering - if travel agents (TA) make money by commission on how much your room costs, what is the incentive for getting you a better room rate?

Just wondering how it worked out. I started out using a TA for my upcoming Nov. trip. When the BAT rate came out she told me she couldn't get a discount. But I was able to get 4 out of 7 days discounted, then 6, and finally all 7, by calling and calling. While I might not expect a TA to do that, I do wonder at how they are paid their money.

Thanks for any info-

Sorcha

 

[traycie2201]

Hi not sure how it works in the states or if i'm giving away trade secrets when i worked for a national travel agency in the uk we were salaried and we made comission on car hire, insurance, parking and other ancillaries, however as an independant TA the money is paid to you from the supplier so for example with one supplier you may get 10% commision on every product sold , so a flight for £300 and you would get £30 so it's up to you how much of that you discount , i have had times when i've had to give most of my comission away to get the sale but made it back on future bookings or through other things booked such as car hire, I would assume it works in a similar way in the states , hope this helps.
The incentive for getting you a better rate is that you will book instead of going elsewhere

 

[ILoveWDW2003]

Just wondering - if travel agents (TA) make money by commission on how much your room costs, what is the incentive for getting you a better room rate?

To provide good customer service! If they don't give you the best price, and you find a lower price somewhere else, they've lost you as a client.

Yet, if they rebook your room automatically and save you $390 or more (Joe at Dream Come True Vacations did this for me - yeah Joe!), won't you be more likely to use them again?

Just look at all of the rave reviews that Dreams Unlimited gets on these boards - they have many satisfied customers who keep using them again and again.

It's just good business.

 

[go to mco]

We are supposed to make money?!?!?
Ohhh--that's what I've been doing wrong. As a travel agent of over 20 years, I can honestly say I've never been motivated by commission. Most agencies don't pay you that way. It's all about customer retention and if you think I'm trying to squeeze some extra money out of you, I'll never hear from you again!

By the way, as far as free trips and super discounts...sigh..the times, they have changed. I own DVC . I get better discounts from codes than from the agency.

Sometimes it's all about yield management. They might only allow a certain number of rooms on codes and a certain number for packages. Keep checking. Availibility truly does change rapidly.

Hope you enjoy your trip!

 

[chilis]

Originally posted by ILoveWDW2003
To provide good customer service! If they don't give you the best price, and you find a lower price somewhere else, they've lost you as a client.

Yet, if they rebook your room automatically and save you $390 or more (Joe at Dream Come True Vacations did this for me - yeah Joe!), won't you be more likely to use them again?

Just look at all of the rave reviews that Dreams Unlimited gets on these boards - they have many satisfied customers who keep using them again and again.

It's just good business.

Joe at Dream Come True Vacations took care of me also. He's wonderful! I believe we have sent about 30 emails back and forth. He has answered every single one of my questions and never once gave me the feeling that I was burdening him with all of my inquiries!! I contacted him because I have never booked a trip to Disney and wanted some expert advice. I watched the boards and knew when codes were released, etc. and Joe was already on top of things. I will definitely contact him next time I book a Disney vacation. I would hope that any TA who wants to keep business would be this accommodating, but I'm sure that is not the case. Thanks, Joe!!

Lisa

 

[hookedup]

Originally posted by go to mco
We are supposed to make money?!?!?
Ohhh--that's what I've been doing wrong. As a travel agent of over 20 years, I can honestly say I've never been motivated by commission. Most agencies don't pay you that way. It's all about customer retention and if you think I'm trying to squeeze some extra money out of you, I'll never hear from you again!

By the way, as far as free trips and super discounts...sigh..the times, they have changed. I own DVC . I get better discounts from codes than from the agency.

Sometimes it's all about yield management. They might only allow a certain number of rooms on codes and a certain number for packages. Keep checking. Availibility truly does change rapidly.

Hope you enjoy your trip!

I could not have said it better myself.

 

[Chicago526]

Yup, most (not all but most, as far as I know) are paid wages and don't earn commision. The agency itself keeps the commision and pays the agents wages from that (plus pay the rent, heat, electric, etc.) so our incentive is to keep you, the client, happy. Since saving people money makes them happy, we always look for the best deal. Making you pay more will earn the agency a few more dollars short term, but lose money in the long term, because the agency will have fewer clients.

Disney still gives TA's halfway decent discounts, but many hotels, car companies, and airlines don't give us a whole lot anymore. The cruise lines will give us a good deal sometimes, especially if they have a lot of cabins open. But it ain't free, that's for dang sure! Our main source of discounts for our own personal travel is access to all the specials that we get emailed and faxed, since we know whats out there we can jump on a good deal when we see one.

 

[leahannpen]

Originally posted by go to mco
We are supposed to make money?!?!?
Ohhh--that's what I've been doing wrong. As a travel agent of over 20 years, I can honestly say I've never been motivated by commission. Most agencies don't pay you that way. It's all about customer retention and if you think I'm trying to squeeze some extra money out of you, I'll never hear from you again!

By the way, as far as free trips and super discounts...sigh..the times, they have changed. I own DVC . I get better discounts from codes than from the agency.

Sometimes it's all about yield management. They might only allow a certain number of rooms on codes and a certain number for packages. Keep checking. Availibility truly does change rapidly.

Hope you enjoy your trip!

You and Chicago 526 are correct! I too, could not have said it much better! LOL!

We are in a customer service industry and therefore must provide customer "service". Then, we hopefully get our commission for the suppliers we use... tour companies, cars, hotels, cruise lines... And hopefully, we get the repeat business from providing great customer service!