how can booking with a travel advisor be “free”?
When a travel agent says, “book with me - its free!” there has got to be a catch, right? Interestingly, not so much. While your travel agent might be a little travel-obsessed, that doesn’t mean that they are planning everybody’s trips without getting paid. Read on to learn more about how this all works, and why this structure is a win-win-win (for agents, travelers, and industry partners alike!)
Demystifying Travel Industry Commissions
If you’re anything like me, the word “commission” may already evoke a feeling of distrust. I am the type of person who absolutely dreads buying vehicles because the thought of talking with a commission-crazy car salesperson makes my stomach tighten! This is why I think it is so important to be transparent in my business as a travel advisor by helping to demystify the backend of the commissions process.
Essentially, the room rates that you book as a guest - even if booked directly on a hotel or cruise website - already have a commission structure built into them. When you book a hotel or cruise through an “OTA” or Online Travel Agency (think: Booking.com, Expedia, etc.), the commission goes to that company. If you book through a travel agent, the commission goes to that individual person or their company. Since the commission is already built into the posted room rate, you should not be quoted an inflated room rate price if you are booking through a travel agent (PS: at least with Andante Escapes, if booking directly was cheaper than booking through me, I’d 100% let you know! Transparency is the name of the game in my book).
It’s not just hotels and cruises - some tours, theme park tickets, all-inclusive packages, ground transportation options, and home/villa rentals offer commissions too. On the flip side, airlines very rarely offer commissions, unless it is an international premium cabin ticket. Overall, when it comes to booking more than just the hotel or cruise itself, this can be when travel agents start charging planning fees. If your travel agent is booking your restaurant reservations, buying tickets to that Broadway show you’ve been eyeing, doing flight research, and planning out your day-by-day itinerary, these activities are generally not commissionable and are time-intensive. Hence, planning fees!
Why Commissions Are a Win-Win-Win Situation
Winner #1: The Traveller (YOU!)
Since the hotel or cruise is paying me for bringing them a well-matched customer, you do not need to pay Andante Escapes anything! My number one goal is to get you booked with a hotel or cruise partner that is completely aligned with your interests, values, and budget. That means that I will be doing the research heavy-lifting on your behalf to find you the perfect match - this is how I work for my Commission. Also, I complete the booking on your behalf and communicate directly with the hotel or cruise leading up to your departure date to ensure that you have a smooth experience. I’d like to see Expedia or Booking.com do that! Finally, by booking through Andante Escapes, you might get access to great extra perks to elevate your stay. More on that with the below section…
Winner #2: The Hotel or Cruise Partner
Lodging partners love booking through travel agents, as they know travelers who booked through travel agents are more likely to be a good match with their experience and brand. As such, they feel that those well-matched travelers are more likely to lean into all the property has to offer, they are more likely to return for a future trip, and they are more likely to have a good experience (especially because they are being supported by a travel advisor). These partners are happy to have commissions go to travel agents (which by the way is a cost savings to them - the commission percentage awarded to an OTA is generally much higher than the commissions granted to individual travel agents).
Betting on you having a good experience, these partners have offered travel agents special rates that have inclusions such as complimentary breakfast, welcome amenities, property credits, early check-in, late check-out, and room upgrades.
Winner #3: The Travel Advisor
Of course, your travel advisor benefits from receiving the commission from the booking. By booking through a travel agent, you are supporting a small business and allowing someone else to take the research and booking logistics off of your plate. Finally, your travel advisor benefits from the commission structure by knowing that their success is entwined with their ability to find you the perfect vacation match. Finding the perfect match can be a challenge, but it is what I live for and is why I started this business to begin with!
