Travel agent's commission?

[Mr Princess]

Wondering if anyone out there can give me some idea as to what commission travel agents work to.

I've just put a cruise on hold with RCL, on line, then checked the price with an on-line travel agency. It was the same price !

So I'm wondering what would be the agent's commission, so I could realistically negotiate a cheaper price with them, than RCL are offering on their web-site!

Thanks in advance,

MP.

[GUT2407]

Wondering if anyone out there can give me some idea as to what commission travel agents work to.

I've just put a cruise on hold with RCL, on line, then checked the price with an on-line travel agency. It was the same price !

So I'm wondering what would be the agent's commission, so I could realistically negotiate a cheaper price with them, than RCL are offering on their web-site!

Thanks in advance,

MP.

 

Good luck.

[Dulcibella]

Motoring organisations seem to give an automatic 5% to members booking cruises through them.

[pattle66]

Good Luck, let us know how you go. I fail to see what the advantage is to using a travel agent. I've not been able to negotiate a better deal and prefer to book direct through RCI now. At least that way I get to control my booking through 'My Cruises' online.

[Kiwi Kruzer]

Good Luck, let us know how you go. I fail to see what the advantage is to using a travel agent. I've not been able to negotiate a better deal and prefer to book direct through RCI now. At least that way I get to control my booking through 'My Cruises' online.

 

The difference is simple...the price is the same , so you are giving more profit to the cruise line. The agent has the ability to discount the amount of commission they earn and so in some cases are able to offer cruises cheaper or give OBC or gifts. If a TA wont budge its simply a matter of phoning another one, quoting the exact cruise and category you want, so they know they are not being mucked around and asking how much they would charge. When pushed you would be very surprised how much they can and do move.

 

As well as that, if the price is the same , at least you know you are helping to keep some of your fellow countrymen in a job.

 

 

[NSWP]

Travel Agents and Tour Operators get up to 15% commission on cruises, hotels, tours and flights according to my son who owner/founder/director of his business specialising in Antarctic Expedition Cruising and Latin America travel, due to constraints on CC I cannot give his company out on this post. When I was in Argentina pre cruise in February 2014, He took his 15% commission off hotels and tours in Igauzu Falls and Buenos Aires we booked with his company.

Edited January 7, 2016 by NSWP

[Mr Princess]

Thanks for that, NSWP. That's exactly what I was asking for!

MP.

[NSWP]

Thanks for that, NSWP. That's exactly what I was asking for!

MP.

No worries Mr Princess, but my son also says the biggest commissions 15% are with the hotels, cruise companies generally around 10% and airlines low as 5%, A lot of variance, a lot of mystery.

Edited January 7, 2016 by NSWP

[Mr Princess]

Thanks again for that clarification, NSWP.

I guess there will be some fluctuation with the bigger on-line cruise agents than with the smaller turnover ones, as well.

MP.

[Mr Princess]

Actually, the cruise cost is about 2500 aud, so at say 10% commission, the agent's getting about 250 aud!

Not bad for what took me about 5 mins on the computer to do!

MP.

[Aus Traveller]

Actually, the cruise cost is about 2500 aud, so at say 10% commission, the agent's getting about 250 aud!

Not bad for what took me about 5 mins on the computer to do!

MP.

Yes. You probably knew what you wanted. I have never worked as a TA, but I do know they can spend a lot of time with a customer that doesn't even result in a booking.:) I don't begrudge the commission they get, if they do a good job. We have had some really bad agents and some good ones.:)

[tomatosauce]

In some countries they work on what they call an agency model where they are not allowed to offer the cruise for a different price to what everyone else does so from a strict pricing point of view it should be the same everywhere. Where the TA can make a difference is with OBC or a bottle of wine waiting for you or a lanyard or a hat or...

[KIWICRUZER]

The commissions agents get vary a lot and they certainly don't get paid on the full cruise fare , especially the discounted fares, so you cant go by 10% etc, a good agent may give you a rebate off the cruiseline price and will look after you better then going direct, particularly if your agent has cruised a lot.You will find the cruiseline agents are just order takers with limited knowledge of the ship etc...

[Kiwi Kruzer]

Actually, the cruise cost is about 2500 aud, so at say 10% commission, the agent's getting about 250 aud!

Not bad for what took me about 5 mins on the computer to do!

MP.

 

Yep ..Using your own computer you can save a fortune.

[Mr Princess]

Yep ..Using your own computer you can save a fortune.

 

 

But with booking cruises on-line, only if either the cruise line or its travel agents pass on some of the commission to you by way of a reduced fare!

MP.

[goodycruising]

I think also that they don't get the commission on the taxes and fees component, and of course the gratuities if you are getting that added up front.

 

I agree that many people can take a long time and the commissions earnt would average out. 5 or 10 minutes for you, but a lot longer with some, and as has been said before, even no sale.

 

A small business has a lot of ongoing costs. Insurances, wages, accountants, phones, internet. They need to make something.

 

Also you might take 5 minutes now, but if you want to change or cancel or any other thing that they have to deal with once the booking is made.....how much time might you really take up in the end?

 

I would say give it a go and you can only ask.

 

We used an Aussie TA actually for our last booking as we would like to see how they go with a basic booking, and we are interested in one of their more complex packages on offer down the track. It was after final payment so we were not going to be able to cancel and we had everything picked out, cabin number etc. We were happy with the information they sent out, and follow up emails. Another online agency in the past did none of those things, so we were interested to see the difference.

 

Would be interested to see if you can actually speak to someone that can make that sort of decision and give you a discount.

[Brisbane41]

15% is a standard benchmark for commission to whoever makes the sale. I know that people who work as a tour coach driver will get 15% commission if they can convince a guest to book another tour with the company.

[Royalty X]

Commission levels depend on the wholesaler/tour operator and the agreement that each agency has with them. I'm not allowed to be more specific, I'm sorry (other people wouldn't discuss their pay packets, why should I?). I will mention though that a lot of you seem to think TA's earn a lot more than we do. Commission comes from the fare portion only, no taxes or grats. And the agent doesn't personally take home the full amount of commission, usually the agency takes the majority. So even if (for example), a booking earned $100 commission, the business could take $80 and the agent gets $20 (before tax). We do it for the love, not the money.

Edited January 7, 2016 by Royalty X

[Royalty X]

I guess what I'm saying above is, please don't expect your agent to reduce the price by too much, and then throw in obc, etc. We honestly don't make that much to begin with, and any discounts or gifts come from that minimal amount.

[highflier01]

Well said Royalty X.

[MicCanberra]

Commission levels depend on the wholesaler/tour operator and the agreement that each agency has with them. I'm not allowed to be more specific, I'm sorry (other people wouldn't discuss their pay packets, why should I?). I will mention though that a lot of you seem to think TA's earn a lot more than we do. Commission comes from the fare portion only, no taxes or grats. And the agent doesn't personally take home the full amount of commission, usually the agency takes the majority. So even if (for example), a booking earned $100 commission, the business could take $80 and the agent gets $20 (before tax). We do it for the love, not the money.

 

Proof of this statement is the turnover of staff in some of these agencies.

[Mr Princess]

We'll put, Mic!

[Mr Princess]

Well put!

MP.

[Royalty X]

Actually, the cruise cost is about 2500 aud, so at say 10% commission, the agent's getting about 250 aud!

Not bad for what took me about 5 mins on the computer to do!

MP.

Hate to break it to you, but you're way off!

[Kiwi Kruzer]

Actually, the cruise cost is about 2500 aud, so at say 10% commission, the agent's getting about 250 aud!

Not bad for what took me about 5 mins on the computer to do!

MP.

 

Hate to break it to you, but you're way off!

 

Even if the TA was getting all that commission she/he would have to sell about 5 cruises a week just to make the average Australian wage.....

 

Australia Average Weekly Wages 1969-2016 | Data | Chart | Calendar

Wages in Australia increased to 1136.90 AUD/Week in the second quarter of 2015 from 1128.70 AUD/Week in the fourth quarter of 2014. Wages in Australia averaged 495.24 AUD/Week from 1969 until 2015, reaching an all time high of 1136.90 AUD/Week in the second quarter of 2015 and a record low of 59.10 AUD/Week in the third quarter of 1969. Wages in Australia is reported by the Australian Bureau of Statistics.

 

 

More than likely they may only get half of that amount, if they are lucky, so therefore would need to sell 10 cruises every week of the year ...520 cruises a year.......I dont think they would do each one in 5 minutes.