The truth about how travel advisors get paid
How do you earn a living? One of the things that is the most confusing to people about using a travel advisor is how we are compensated. Like any service business, everyone has their own method, but since I’m fielding so many calls from new clients, I figured that now was a good time to break down how I keep the lights on at Perspectives Travel.
There are two ways that I’m compensated for planning travel:
1. I charge a travel management fee before any work commences on your trip. When I first started out in the industry I felt like I was too new and inexperienced to charge a fee but then I had a string of clients who loved all of my suggestions so much that they booked it on their own. We’ll get to why that’s an issue in a bit, but the truth of the matter is that I spend dozens of hours researching and planning your trip and it makes no sense to do that for free.
The point was driven home during COVID, when advisors had to plan, cancel, and then replan trips due to the pandemic. Even if you charged a fee you still lost money, but if you didn’t charge any kind of professional fee then you essentially worked for free not one time, but three. I offer three levels of service starting at $500 that allows you to pick how involved you want me to be. Some people want to do the planning, but need help with picking a destination. Others want to hand off everything but packing to me and just show up at the airport, ready to make memories. The beauty of having four levels of service is that I get to work with all types of clients from honeymooners, to solo trips, to executive retreats and everyone can find a level that suites their needs and budget.
2. Part two of my compensation comes from commission. I get to match my clients with the hotel, cruise, or activity that is perfect for their individual travel style. Think of commission as a referral fee paid from the travel supplier to me for vouching for their offerings and placing my clients in their care. It’s typically a set percentage, that’s often non-negotiable, and it can be paid as far out as 3 months after you return from your trip. I think of commission as a compliment to my travel management fee, but not a driver of it. Ultimately, I want to recommend the best option for you, which may mean the option that doesn’t pay a high commission.
And of course there is an exception to the rule which is simple hotel bookings. If you know exactly where you want to stay I can run a quick search and see if I’m able to offer you those amazing VIP perks that I’m always raving about!
As more and more people turn to travel advisors for help in navigating the new pandemic travel landscape, just remember that this is a profession and not a hobby. Behind every “quick question”, “can I pick your brain”, and “do you have any recommendation for” is an answer that we’re charging our actual clients for. Sure, we love what we do and we’re passionate getting folks back out in the world, but we’re also small business owners, who are trying to recover from what was nothing short of a few traumatic years for our industry.
Now that you know more about how I’m compensated, I hope it takes some of the mystery out of working with me! Reach out when you’re ready to work with a pro and plan your next trip!