Latest from my blog...

Subscribe to the RSS Feed

How Travel Agencies Make Money

Posted on 01 July 2022 by (0)

You may be interested in becoming a travel agent in the future. And this is a good idea. The travel agency industry is lucrative, which is why you see many travel agencies operating today. One of the primary reasons that these travel agencies exist is to make money. These travel agencies make money in several ways.

Vendor Commissions

Most travel agencies make money through commissions paid by the vendors of various services or packages. A travel agency will work with vendors such as airlines, hotels, tour companies, and cruise ships. The travel agency will sell the vendor’s products or services to the customers and earn a commission they agreed on beforehand.

For example, a travel agent will sell airline tickets for a particular airline on a commission basis. After selling tickets to customers, the airline will pay the travel agent a commission based on the agreed rate. Therefore, the travel agent will make more money from such vendor commission by selling more tickets.

Service Fees

Travel agents also make money from charging service fees. A service fee is the funds a business or company charges to render certain services. If you are a travel agent in the leisure industry, you may decide to charge customers for consultation or booking their cruises and everything else on their itinerary. And this is a form of direct income that the travel agents charge.

Service fees are part of the efforts of travel agents to diversify their business models. With vendor commissions becoming lower and scarcer, travel agents are diversifying into service fees to remain profitable. The travel agent will determine the kind and amount of service fees to charge customers.


Travel agencies make money mainly through the commissions they earn from vendors. However, they are also diversifying their revenue streams, and charging service fees is now another significant way of making money for many travel agents.