Tuesday, February 23, 2010

How much commission/ profit do travel agents usually make when they book an overseas hotel for customers?

And how do they tend to arrange cost with the hotels?How much commission/ profit do travel agents usually make when they book an overseas hotel for customers?
There are two ways that this works. Firstly the Travel agent may have a contract rate with the hotel. In this case the agen is often referred to as a tour operator. The agent then marks up the price often with car hire or a flight included making it less transparent.





Otherwise the travel agent contacts the hotel and specifies their commission and if the hotel agrees with this they will take the booking normally 10% in this case. In the former case often 20%How much commission/ profit do travel agents usually make when they book an overseas hotel for customers?
The hotels set aside a set amount of rooms for travel agents and travel sites. The rooms are set at a specific rate for those agents. The agents in turn who book the room at a hotel add on their commission to the price. The price you are quoted is comparable to other agents and sites so that no one agent or site is superior to another.





My suggestion if you do not have a travel agent is to book your hotel online on Orbitz, Expedia, etc.





I hope this helps.

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