How Much Commission Do Travel Agents Make on Flights? And Why Do Some Airlines Still Use Them in the Digital Age?

The travel industry has undergone significant transformations over the past few decades, with the rise of online booking platforms and the decline of traditional travel agencies. However, travel agents still play a role in the industry, particularly when it comes to booking flights. One of the most common questions people have is: how much commission do travel agents make on flights? The answer is not straightforward, as it depends on various factors, including the airline, the type of ticket, and the agreement between the travel agent and the airline. But beyond the numbers, there’s a deeper question: why do some airlines still rely on travel agents in an era dominated by digital booking tools?

The Commission Structure for Travel Agents

Historically, travel agents earned a significant portion of their income through commissions on flight bookings. In the past, airlines paid travel agents a standard commission of around 10% of the ticket price. However, this model has changed dramatically in recent years. Many airlines have reduced or eliminated commissions altogether, forcing travel agents to adapt their business models.

Today, most travel agents earn their income through service fees charged to clients rather than commissions from airlines. However, some airlines still offer small commissions, typically ranging from 1% to 5% of the ticket price. These commissions are often reserved for high-volume agents or those who specialize in selling premium tickets, such as business or first-class seats.

Why Do Airlines Still Work with Travel Agents?

Despite the rise of online booking platforms, some airlines continue to work with travel agents for several reasons:

1. Complex Bookings: Travel agents are often better equipped to handle complex itineraries, such as multi-city trips or group bookings. These types of bookings can be time-consuming and challenging for customers to manage on their own, making travel agents a valuable resource.

2. Customer Service: Travel agents provide personalized service that online platforms cannot match. For travelers who need assistance with visa requirements, travel insurance, or other logistical details, a travel agent can be a lifesaver.

3. Corporate Clients: Many businesses rely on travel agents to manage their corporate travel programs. These agents often have access to negotiated rates and can provide detailed reporting and expense management services.

4. Niche Markets: Some travel agents specialize in niche markets, such as luxury travel, adventure travel, or destination weddings. Airlines may partner with these agents to reach specific customer segments.

5. Global Reach: Travel agents often have a global network of contacts, which can be useful for airlines looking to expand their reach in new markets.

The Shift to Service Fees

As airlines have reduced or eliminated commissions, travel agents have had to find new ways to generate revenue. Many now charge service fees to their clients, which can range from a flat fee per booking to a percentage of the total trip cost. This shift has allowed travel agents to remain profitable while providing value-added services that online platforms cannot offer.

For example, a travel agent might charge a $50 fee to book a domestic flight but offer additional services such as seat selection, meal preferences, and assistance with changes or cancellations. For international trips, the fee might be higher, reflecting the additional complexity and time required to arrange the booking.

The Future of Travel Agents in the Flight Booking Industry

The role of travel agents in the flight booking industry is likely to continue evolving. While online platforms have made it easier than ever for consumers to book their own flights, there will always be a demand for personalized service and expertise. Travel agents who can adapt to changing market conditions and offer unique value propositions will continue to thrive.

One potential area of growth is in the realm of experiential travel. As more travelers seek unique and immersive experiences, travel agents who specialize in crafting customized itineraries will be in high demand. Additionally, the rise of sustainable travel and eco-tourism presents an opportunity for agents to differentiate themselves by offering environmentally conscious travel options.

FAQs

Q: Do travel agents still get free flights as part of their commission?
A: While it was once common for travel agents to receive free or heavily discounted flights as part of their compensation, this practice has largely disappeared. Today, any perks or discounts are typically negotiated on a case-by-case basis.

Q: Can travel agents get better deals on flights than online platforms?
A: In some cases, yes. Travel agents may have access to exclusive fares, negotiated rates, or package deals that are not available to the general public. However, this is not always the case, and it’s worth comparing prices before making a decision.

Q: How do travel agents make money if airlines don’t pay commissions?
A: Most travel agents now charge service fees to their clients. These fees can vary depending on the complexity of the booking and the level of service provided.

Q: Are travel agents worth using for simple flight bookings?
A: For simple, straightforward bookings, it may be more cost-effective to use an online platform. However, if you value personalized service or need assistance with additional travel arrangements, a travel agent can be a worthwhile investment.

Q: Do travel agents have access to last-minute flight deals?
A: Some travel agents specialize in last-minute bookings and may have access to deals that are not widely advertised. However, this varies by agent and airline.