I would argue that the #1 most important aspect of a great working relationship is transparency and open communication. That’s why it’s high time we have a candid conversation about how travel advisors get paid!
Historically, this hasn’t been a topic openly discussed between travel advisors and their clients. I know for a fact it’s on people’s minds, though, because every time I get a close friend or acquaintance in any in-depth conversation about what I do, I can almost always expect them to – very carefully – broach the subject.
I’m here to tell you that you shouldn’t be embarrassed about wondering! We know how others in the service industry get paid – whether it be by their employer, tips, or from commissions. It helps us understand what motivates them, how we should interact with them, and to what lengths we can expect them to go in their jobs and why.
On that same vein, travel advisors shouldn’t be embarrassed about telling you, either! Travel agents I’ve met in the past have expressed that they don’t want to talk with clients about how they make money because they’re afraid they’ll seem greedy or clients will think they have ulterior motives for recommending certain things over others. Another big reason is that they don’t want people to think they’re paying more by working with an advisor than they would by going directly to the travel supplier. There are lots of other reasons why the subject has always been considered “taboo”, and I’d like to make them irrelevant here.
The truth is, if the general public actually understood how travel advisors worked and made money, we wouldn’t have to worry about any of that! You’re all reasonable people, right? You understand that nobody wants to work for free. You can love what you do and still not be expected to do it all out of the goodness of your heart, on a purely volunteer basis – am I right or am I right?
So enough is enough. I’m here to answer the question that’s been burning on everyone’s minds…
HOW ON EARTH DO I GET PAID?!
I can’t promise a short answer, but I can promise an answer nonetheless. And that is that there are a few different ways. Every travel advisor is different and may have different models, but for simplicity’s sake, I’m going to stick with the way Aum Journeys does things here…
THE PLANNING FEE
The planning fee as the primary way we get paid because it is the only compensation that is guaranteed. I repeat – it is the only element of your trip that guarantees I get paid for the time, effort, and expertise that I pour into each and every vacation.
In the past, advisors have considered commissions from hotels, cruises, and even airlines, at one point, as their primary means of compensation. But if the 2020 pandemic has taught me anything, it’s that the fact that getting paid for my time hinges on whether or not the travel supplier makes a profit is not an acceptable way of doing business. A planning fee allows travel advisors to be compensated on the front end. More on this later…
On an ongoing basis, I keep track of how many hours I spend working on each trip. From after the initial consultation call (because that’s always free!) until the trip is booked, confirmed, and all details are ironed out, I add up the time spent and multiply it by the hourly rate I’m comfortable with.
The bulk of the work a travel advisor does is during these stages – not when you actually travel. By the time you travel, the hours have already been logged and the work long done. I’m now able to accuratey estimate how much time I’ll spend on each type of trip and determine the planning fee amount based on that.
Another important detail to think about re: the planning fee is that I’m recommending the hotels and experiences that are right for you – not only because I’ve already been compensated for my time, but because I want you to be blown away by how much you LOVE your trip and to work with me again in the future!
THE COMMISSION
| Hotels, cruises, tour operators, and other travel suppliers (except airlines) pay advisors a commission after you return home from your trip. Commission percentages range anywhere from 8%-18% of your trip cost and often any taxes and fees aren’t included when calculating that percentage. It’s also important to note that the commission isn’t in addition to what you’d pay if you booked directly. Rather, it’s a portion of the profits that is passed on to the advisor for recommending a product. If commission was a travel advisor’s only source of income, it’s extremely rare that it would ever be enough to cover the amount of time that’s actually involved in planning a trip in a way that provides an exceptional service to you. With the amount of detail, checking and re-checking, care and attention that goes into making sure your trip is just right, commission is just one piece of the puzzle. |
Not only that, but if the unexpected happens and you have to cancel the trip for any reason after I’ve already poured my heart and soul into making it special, commissions aren’t paid out after all. And although I know you’re just as disappointed as I am that you couldn’t go on your vacation, I want to be in business next year when you’re ready to plan again, so I’ve still got to keep the lights on.
WHAT’S IN IT FOR YOU?
But it’s not just time that the planning fee and commission pays for. Check out the Benefits page to see what else you’re in for when you hire Aum Journeys as your travel planner. You can also read my blog posts: Is Using a Travel Agency Really Worth it and How to Make the Most of Working with Aum Journeys. Still not convinced? Maybe these will help.
So although I love the idea of being surrounded by an air of mystery, I hope this explanation has opened a line of communication between us that maybe you weren’t previously aware of. The more we know about each other, the better we can work together and the sooner we’ll have you on an adventure you’ll never forget.
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