Rebate (ing)

Rebate (ing)

Rebate, also known as “discount,” is a business practice wherein part of an agency’s commission is returned to the client. The practice is common among high volume sellers, such as those who operate “800” number travel agencies.

While the benefits of receiving a rebate are clear- a lower price for the same service- there is often a trade-off when it comes to customer service. Clients who receive a rebate may experience less personal attention or lack of customer service compared to those who pay the full rate.

In some cases, rebates may also come with certain terms and conditions, such as requiring the client to purchase a certain volume of products or services to qualify for the discount.

Overall, the rebate business model is not unique to travel agencies and is prevalent in many other industries. The effectiveness of offering a rebate usually depends on the nature of the product or service being offered and the preferences of the target market.