How Travel Agents Make Money From Hotel Bookings
The rise of the internet means that businesses have more choice
than ever before when it comes to booking their travel, but an increased number
of options means that it is harder than ever for companies to know if they are
getting the very best deal.
This situation has led to many firms deciding to use the services
of a travel management company (TMC), which often have the right connections
with various hotels around the world, working to offer their customers the best
value for money.
The level of commission that an agency earns on the booking of certain hotels is of
ten a great source of their
income. Travel agencies sell rooms per night on behalf of the hotels in
their business portfolio, while also providing a valuable service to their
hospitality partners. Commission is then made through the use of manual
invoicing, before the payment is then processed by the bank and placed into
company accounts.
This approach to making money is not exactly foolproof as, due to
the fact that commission payments are made individually and manually, they can
often be inconsistent, a situation that can cause great stress and worry for a
TMC, especially when the global financial crisis has left many businesses across
a number of industries becoming less financially secure.
This situation is made all the more serious given the fact that
payments from hotels have become more of a priority to many agencies, due to
the fact that other areas, including airline and car rental commissions, have
started to dwindle.
