How Do Travel Agents Make Money?

Originally published on July 3, 2024; updated on August 5, 2025

As a travel advisor, I’m often asked how I make money. Many people really aren't sure. 

Let me tell you how it works.

Commission Structure

Almost every facet of travel has commissions already built in. Hotels, cruises, tour companies, car rentals, etc., include commissions for travel advisors or in-house agents. Even companies like Expedia, Viator, and VRBO have agent fees included in the rates. 

For example, when you book a cruise for $4000 through an advisor, a percentage of that amount is paid to the advisor as commission by the cruise line. Importantly, the guest would pay the same $4000 regardless of whether they book directly or through an advisor. As an added bonus, an advisor can often access sold-out categories for clients that are not available to the public and/or offer extra amenities such as shipboard credits.

Hotels and other travel providers often prefer direct client bookings—they retain more profit!

Airfares and Fees

Airlines are a different story. Unlike other travel components, airlines typically do not offer commissions to advisors on airfares. Therefore, advisors may charge a nominal fee for their ticketing services. This fee covers the advisor's time and expertise in finding the best flights and managing the booking process. International travel, which involves complexities such as passports and visas, may incur higher fees compared to domestic bookings. Travelers always have the option to book flights themselves, utilizing tools like Google Flights for research.

Consultation and Planning Fees

For complex itineraries, especially involving international travel, group bookings, or highly customized trips, travel advisors may charge consultation or planning fees. These fees reflect the extensive research, expertise, and time invested in crafting a seamless and personalized travel experience. Travelers are encouraged to ask about any potential fees upfront and to understand the value an advisor brings through their knowledge and detailed planning.

Value of Using a Travel Advisor

Working with a travel advisor offers several advantages beyond potential cost savings. Advisors stay up-to-date with the latest itineraries, newest ships, latest promotions, and special rates, ensuring clients get the best value for their money. Many of these offers or extras are not accessible to the general public. They also have access to a network of travel experts, supplier contacts, and other resources to vet destinations and providers before making recommendations and finding the best fit for clients.

For travelers who believe time is money, the nominal fees possibly charged by advisors for planning and personalized service are well worth the investment.

Conclusion

Navigating the vast amount of travel information available can be overwhelming. Travel advisors simplify this process by providing up-to-date insights and personalized recommendations tailored to individual preferences. 

Before booking your next trip, consider consulting with an advisor to take advantage of their expertise, save time and money, and ensure another standout adventure!