If you are intending to work with domestic travel industry partners or booking systems; travel agents, booking offices, wholesalers, airline partners, online booking sites or inbound tour operators, you must be prepared to pay a level of commission. It should be seen as a fee payable to any intermediary that on-sells your product. 

The level of commission you will be expected to pay will vary depending on the markets you are selling in i.e. Domestic Vs International, and the trade partners or bookings systems you are working with. As a general rule, allow up to 20% in the domestic markets and 30% in international markets.

Please remember you only pay commissions when you get a booking via the travel industry. All businesses need to make sure commissions are built into rack or retail rates. You cannot add them onto your normal rates, as this disadvantages the consumer and travel industry partners.

The cost of covering commissions on top of operating costs may seem daunting to some operators. However, it is important to remember that you only pay a commission on those bookings actually made through the wholesaler or travel agent.

Packages make it easier for travel agents and wholesalers to sell them and earn commission. Packages distributed through the travel trade will need to be fully commissionable.

Last Updated 21st November 2012