Compensation for travel professionals primarily arises from commissions paid by suppliers like airlines, hotels, cruise lines, and tour operators. These commissions are percentages of the total booking cost. For instance, a hotel might offer a 10% commission on a room booking made through an agent, while a cruise line could provide a commission of 5% to 15% on a cabin fare.
This commission-based model has evolved significantly over time. Historically, it was the predominant source of income. While still important, diminishing commission rates, particularly from airlines, have necessitated alternative revenue streams. This shift has emphasized the value of expert advice, personalized service, and the ability to navigate complex travel arrangements.
