© 2025 by LuxRally Travel LLC
CA Seller of Travel Ref. No. 2151375-70
Fla. Seller of Travel Ref. No. ST43780
WA Seller of Travel UBI No. 604-982-628
HI Seller of Travel Ref. No. TAR-7477
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Fla. Seller of Travel Ref. No. ST43780
WA Seller of Travel UBI No. 604-982-628
HI Seller of Travel Ref. No. TAR-7477
CA Seller of Travel Ref. No. 2151375-70
© 2035 by LuxRally Travel LLC
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Where is this? Mount Nelson, a Belmond Hotel, Cape Town, South Africa
"The truth is that agents make money through commissions, not fees."
What are your options for maximizing revenue? In this article, we'll break down the good, the bad, and the ugly of how travel agents earn. This doesn't cover salaried positions—check resources like Glassdoor for that.
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Where is this? Amanpulo, Palawan, Philippines
Charging Fees (not recommended)
If you've been researching this topic, you've likely seen resources about the challenges travel agents have faced, leading many to charge fees. These struggles began in the '90s when airlines reduced or eliminated commissions, further compounded by OTAs like Expedia and world events such as 9/11 and COVID-19. To compensate, many agents introduced fees as a way to diversify income.
At our agency, however, we take a different approach. We not only discourage fees—we ban them entirely. Any agent caught charging a fee is promptly removed. Why? Because we believe in disrupting outdated philosophies to offer a better way forward. We train our agents to be efficient. With our cutting-edge tech and specialized training, a LuxRally Travel agent can complete tasks in minutes that might take other agents hours. This removes the need for fees entirely.
Most agents struggle to earn six figures even with fees, but our founder built a seven-figure income without them. In fact, after eliminating fees and streamlining processes, a peer mentored by our founder saw earnings increase tenfold—from $25,000 to $250,000 per year. The truth is that agents make money through commissions, not fees.
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Where is this? Cap Juluca, a Belmond Hotel, Anguilla.
Commissions and Best Practices
Commissions are the primary income source for agents, typically ranging from 10% to 20%, with an average of 13% industry-wide. For example, a $5,000 booking at 10% earns a $500 commission. If this is completed in 15-30 minutes, you can make $1,000-$2,000 per hour. Why risk losing that by charging fees? Slow agents earn less, but efficiency—especially with ultra-luxury or group bookings—can boost earnings into six or seven figures quickly.
Our agents have the ability to earn even higher commissions thanks to our NET rates and the commission slider bar in FastBook. The slider bar goes both ways; sometimes, you may need to lower the commission to save the deal, though our agents typically don't go lower than 17% on NET rates since we have such a wide margin.
Clients expect instant gratification. Agents who stick to strict office hours lose out to OTAs like Expedia. Scheduling new clients a week out risks losing them entirely as prices fluctuate. Always be available, even if it means stepping out of a movie theater. Reliability ensures repeat business and higher earnings.
Efficiency comes from knowing your network and markets. If you get a request for Mexico, for example, you should understand top properties for families, budget travelers, and luxury seekers. Quickly matching clients with the right options increases satisfaction and boosts your hourly earnings. We optimize this via our list search function in FastBook.
Clients will tell you exactly what they want—if you let them. Listening helps you turn their vision into reality, earning their loyalty for future trips. In a world filled with fake reviews and overwhelming options, being the expert who delivers quickly will make you indispensable.
Charging fees doesn't diversify income; it alienates clients. Instead, grow your client base through referrals. Happy clients lead to introductions to ultra-high-net-worth individuals and large-scale bookings. Wealthy clients still travel during downturns, and middle-class clients book during tax season. Diversifying your markets is the real way to diversify and stabilize income.
Lastly, Specializing in one niche limits earnings. Be the go-to for all travel needs—book a cruise one day and a luxury hotel the next. The more you offer, the more clients will rely on you. We train our agents how to book everything efficiently and confidently.
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Where is this? Aman Venice, Italy
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Where is this? Splendido Mare, a Belmond Hotel, Portofino, Italy
Ignore the Noise and Make Money
Our host agency is built for agents who want to maximize income and client retention (we believe these go hand in hand). You've likely picked up on the fact that we are different. The difference in approach creates a massive increase in earning potential.
Our tech ensures our agents maximize earnings per hour and client experience. Our training ensures our agents can book everything and not miss out on earning opportunities. Our mentorship and community ensure our agents continually build momentum and expertise.
Other agencies tend to foster philosophies that live in direct opposition to ours. We are aware of this and okay with it. We see earnings and client satisfaction as the score in this game, and we are winning as far as we can tell.
How do travel agents make money?
Last Updated:
01/16/2025