Commission in Travel Industry
Commission in the travel industry refers to the percentage of the fee that a travel agency or service charges to generate profits. This fee is added to the total fee paid by the customer to cover the expenses of the travel agency and generate profits. Typically, the commission is a small percentage added to the total cost of the travel arrangement.
Commission can also refer to the money paid by suppliers to a travel agency or ARC (Airline Reporting Corporation) for generating bookings. Many suppliers pay commissions to travel agencies for promoting their products and services. For example, hotels, airlines, and car rental companies typically offer commissions to travel agencies for booking their products.
In summary, commission in the travel industry refers to the fee charged by travel agencies or services on the total cost of the travel arrangement to generate profits, or the money paid to travel agencies by suppliers for bookings they generate.
« Back to Glossary Index