Travel Agent Commission

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#2
105,196 Posts
Joined Jul 2001
Our TA gets certain percentage depending on the cabin type we book -- the cost of the cruise -- in order words -- the longer the cruise and the higher cabin category we book, the bigger commission she gets.
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#3
Toronto, Canada
999 Posts
Joined Jul 2005
Originally posted by Krazy Kruizers
Our TA gets certain percentage depending on the cabin type we book -- the cost of the cruise -- in order words -- the longer the cruise and the higher cabin category we book, the bigger commission she gets.
yes indeeds that true. just like in most professions:
cars - more expensive higher commission
real estate - moere expensive higher commission
grocery shopping - more u buy..the more the store makes
insurance agents - higher the premium...higher the commission
airline tickets - the higher the price, the more airlines make
waiters - the higher the bill - the more the waiter makes on a tip....

just want to make the original poster that this rules does not only apply to travel agents - its a life thing....its the way the world turns...
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#4
cincinnati, ohio,usa
5,718 Posts
Joined Oct 2000
Originally posted by marcoigna
yes indeeds that true. just like in most professions:
cars - more expensive higher commission
real estate - moere expensive higher commission
grocery shopping - more u buy..the more the store makes
insurance agents - higher the premium...higher the commission
airline tickets - the higher the price, the more airlines make
waiters - the higher the bill - the more the waiter makes on a tip....

just want to make the original poster that this rules does not only apply to travel agents - its a life thing....its the way the world turns...
True, but some in some professions, people work on straight commission, while others work on salary + commission, and then there are those who work on salary + bonus. I think this is what the OP was asking.
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#5
Canada
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Joined Nov 2002
I have always been curious as to when the Travel Agent receives his/her commission on your cruise. Is it after final payment? Or is it after you return from your cruise? I am too chicken to ask our travel agency. Always wanted to know.
#6
Warwick, R.I. , USA
37,517 Posts
Joined Mar 2001
Originally posted by Johanna7
I have always been curious as to when the Travel Agent receives his/her commission on your cruise. Is it after final payment? Or is it after you return from your cruise? I am too chicken to ask our travel agency. Always wanted to know.
I believe it's after you board; it's not before. I don't know if you have to complete the cruise.
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#7
Queens, NY
2,370 Posts
Joined Sep 2003
Hi Everyone, I'll answer all your travel agent questions. I'm a TA in NYC and I don't make a salary but just work on commissions. You are right about the more you purchase from a cruise the more we get in commissions. How Commissions work is that the Cruise Lines will pay us. They will pay us between 15% to 20% depending on the sales of the agency. From my agency I'll make at least 11% of the sale and the travel agency will make the rest. The travel agency will get the commision when the final payment is made by the client. The Cruise Line will probably take a few weeks to cut the check to the agency though. When I work with a client, they can e-mail or call me as much and they want and I never charge them anything for my time. I will also give my clients extra perks like onboard credit, wine, a free dinner at a specialty restaurant and so on. I hope this helps and have a nice day.
#10
southern NM desert
10,772 Posts
Joined Aug 2009
Originally posted by gkny
Hi Everyone, I'll answer all your travel agent questions. I'm a TA in NYC and I don't make a salary but just work on commissions. You are right about the more you purchase from a cruise the more we get in commissions. How Commissions work is that the Cruise Lines will pay us. They will pay us between 15% to 20% depending on the sales of the agency. From my agency I'll make at least 11% of the sale and the travel agency will make the rest. The travel agency will get the commision when the final payment is made by the client. The Cruise Line will probably take a few weeks to cut the check to the agency though. When I work with a client, they can e-mail or call me as much and they want and I never charge them anything for my time. I will also give my clients extra perks like onboard credit, wine, a free dinner at a specialty restaurant and so on. I hope this helps and have a nice day.
I know there's govt tax and there are 'non-commissionable' fees, so is the 15-20% you're referring to based just on the basic fare, the cost shown online before all the fees are added on?

Is that what an independent agent gets too if there's no 'agency'?
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#11
San Antonio, TX
1,471 Posts
Joined Apr 2007
One wonders what you would think if someone asked your boss what your salary was. Why is this important? I do not use a TA (nor am I one), but if I did all I would be concerned with is the level of service I was being provided by the individual. Their income is their own business.
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#12
2,775 Posts
Joined Jan 2010
Originally posted by Johanna7
I have always been curious as to when the Travel Agent receives his/her commission on your cruise. Is it after final payment? Or is it after you return from your cruise? I am too chicken to ask our travel agency. Always wanted to know.
It depends upon the cruise line's policy. My TA told me some pay before, some after.
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#13
Southern California
3,408 Posts
Joined May 2009
I've been wondering this.... Do you consider it appropriate to give a little thank you gift to you TA after a trip? I'm thinking of creating a small photo book of scenic pictures from the trip or sending her a gift card for dinner....

What do you think?
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#14
7,010 Posts
Joined Jan 2005
the more expensive the property doesn't mean the % of commission is higher, it's usually less although the actual $ may be higher. Rarely will the seller pay 6% on a property over $1mm.
#15
1,140 Posts
Joined Apr 2003
The standard commission is 10%, but it is not based on the total fare. There are deductions.
Example:
A gross fare for two of $1,595.18 with no air or CPP would have these deductions.
Taxes and fees -$177.18
Non commissionable amount -$340.00
Net $1,078.00
Commission $107.80
HAL also pays commissions if you buy a CPP plan, but not on air fares or shore excursions.
I don't know of other circumstances with big agencies.
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#17
southern NM desert
10,772 Posts
Joined Aug 2009
Originally posted by TiogaCruiser
I've been wondering this.... Do you consider it appropriate to give a little thank you gift to you TA after a trip? I'm thinking of creating a small photo book of scenic pictures from the trip or sending her a gift card for dinner....

What do you think?
I think it depends on how much work and communication your TA did for you. On one cruise we took all the TA did was the booking, nothing else. She only does cruises, no airfare unless it's through the cruise line. So we booked our own airfare. We also did our own travel insurance. I felt that her commission from the cruise line was payment enough for what she did.

However, for the cruises we currently have booked she's done quite a bit more work. Besides booking the cruise she did our insurance with an independent company we wanted. On one cruise where we booked the air it kept getting changed and we finally got a refund and booked with another airline. Our TA had to cancel our post-cruise hotel and had to keep changing our flight info with cruise line for our pre-cruise pickup/transfer.
After we'd added airfare we forwarded a copy of the receipt and she had the value added to the insurance program.

On the other cruise I added a B2B to it which required several changes in the original booking, including calling insurance to add value and to change dates.

We will definitely be giving her some kind of gift after our next cruises. She had to do much more than just book the cruise.

So, I think it depends on what your TA has done for you.
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NM Lady (Mary Kay) & my Joe
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#18
Airdire, Alberta, Canada
55 Posts
Joined Jul 2006
So if you book online yourself, what happens with the commission? Do they just keep it?
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#19
Long Island
1,058 Posts
Joined May 2009
And I thought that TA's did it just for the fun of it! I was using the same TA for over 10 years with a nary an incentive or bottle of wine. We referred our friends to her and ususally had everything worked before we handed it over to her. I now book all of my own travel on line and direct through the cruise lines. It's a shame that she lost our business, but after reading some of the perks other travelers received, we took our business elsewhere.
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#20
Space Coast FL
24,962 Posts
Joined Sep 2006
Originally posted by TiogaCruiser
I've been wondering this.... Do you consider it appropriate to give a little thank you gift to you TA after a trip? I'm thinking of creating a small photo book of scenic pictures from the trip or sending her a gift card for dinner....

What do you think?
We send ours postcards saying we're having a great time, and often buy some trivial/novelty gift like "moose dropping" candy from Alaska, but a book of your pictures would probably not mean much to him, and a gift card for dinner would seem odd to me after he has given us a gift of dinner on the ship.

I think the best gift we can give him is more business, and steering more customers to him where possible.