Agent to Agent: Should Travel Agent Commissions Be Higher?

Dear Tammy: I’ve been working as a travel agent for almost two years now. I’m surprised that our commissions are so low, as we do so much work! Do you think we should get higher commissions?

Tammy: Yes, I definitely think travel agents should receive higher commissions due to all of the work they do for their clients. In fact, I have quite a few travel agents who have been contacting me for commission information, and I totally agree with them when they say they want higher commissions. They also want to be paid sooner, as sometimes commissions aren’t paid until months later.

The agents I connect with often tell me that they feel that certain travel niches—like the cruise line industry and tour operators hoteliers—should be giving more commissions to the travel agents they do business with. Agents are the ones who are going to be busting their butts to get them more business, so it only makes sense that this is the time for them to step up to the plate. Agents deserve more money, and therefore should be given higher commissions.

In reality, I agree with higher commissions because agents haven’t gotten an increase in commissions as long as I've been in the business. And I’ve been in the business for over 20 years! So, I still make about the same amount percentage of commission, even after all of this time. For example, some hoteliers, like Marriott's, let's say only give agents they work with about a 6 percent commission. Who could live on that?

Part of the reason agents are now speaking up is because over the past few years or so, some airlines cut the commissions an agent would make for an international flight. Some major hotels even recently completely cut out commissions to agents, saying it was necessary to satisfy their stakeholders. When agents were asked how these lower commissions and cuts affected their bottom line, most say they affected them a lot.

The Bureau of Labor Statistics states the low end of a travel agent's earnings in 2018 was just over $22,000. This is not a lot of money to live on, especially if supporting a family. Agents save travelers money, making them an invaluable part of the travel industry. They also wear many different hats to make sure their clients' travels go exactly as planned, with many agents making themselves available around the clock if needed.