How Travel Agencies Make Money
Travelling agencies are one of those who are earning well in the tour industry these days. They make money and at the same time they help those people who want to discover the beauty of different places and destinations.
Here are some ideas how travel agencies make money out of their business.
Through Commission
It is presumed that when a person goes to an office of a travel agency, he would approach there to book for a travel experience and expect an excellent and affordable travel prices without worrying about the preparation and the planning of the whereto of a travelling person. The travel agency’s job is to look for travel rates that would help the client get the best offers for his destination. The agency will get the lowest possible rate for a particular destination and offer it to the client. And if the client would approve the said booking and it suits his travel plans then the agency would do the rest of the job so that the client will leave all the worries to them and he’ll just go to the destination without worrying about the necessary things that needs to be done.
One must remember that the agencies has their partner cruise lines, airlines and other lines of transportation so you must choose among those partner lines so that you’ll be able to get the best offer in a minimal price. The commissions that the travel agent gets from every booking he made a great source of making money. At least 30% of the rate paid by the client goes to the agent. That is why, if there is a low economic condition, it would affect the commissions of the agents that it would flank up to 10%.
Through Rebates
Travel agencies that agree to do their job exclusively to a particular partner in travel industry would usually get an income from travel rebates. The agency would usually help clients to book their travel plans with the travel provider and would charge them the lowest possible fare. If there is a sudden drop of fare rates, the travelling partner would return the rebate to the travel agency. If the said travel agency would allow it, the customers would also receive rebate from the agency.
Through Charge Fees
Because of the growing problems with the condition of the economy, these travel agencies are forced to charge their clients with fees for the services they offer. Aside from the rates of the bookings in airlines, shipping lines, hotels and car rentals, they also give additional service charge for the services they give in looking for the bookings they made. These fees are usually marked as the convenience fees. These fees would compensate the agent of the travel agency for the job he made in looking for the booking he made and also for the effort he made in researching for the booking.
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