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.

 How to promote tourism culture in Pakistan

Tourism can be a multi-billion-dollar industry in Pakistan provided there is awareness and policy on the part of stakeholders to promote the culture of tourism. A country’s image and reputation are judged on the basis of its capacity to provide basic facilities to tourists, particularly foreigners.

When India and China can earn more than $20 billion from tourism and various European countries like Switzerland, France, the UK, Italy and Greece can fetch several hundred billion dollars from tourism, why cannot Pakistan, a country blessed with enviable natural beauty? Recently, Prime Minister Imran Khan said if a country like Switzerland can earn several billion dollars from tourism, Pakistan can certainly take meaningful steps to attract tourists. But, merely by-passing statements on transforming Pakistan as a hub of tourism will not make sense unless the government takes practical steps to create a culture of tourism which would require a mindset of local people, tour operators, hotels and officials attached with the ministry of tourism.

When one talks about the culture of tourism it means four major requirements.

First, the attitude and behavior of those who are supposed to provide guidance and facilities to tourists.

Second, adherence to hygiene and cleanliness at restaurants, eateries, washrooms and hotels at tourist spots. Unfortunately, with a few exceptions, there is absence of hygiene and clean environment for tourists, which creates a very bad impression for both local and foreign tourists.

Third, availability of affordable accommodation and food is essential for creating a culture of tourism in Pakistan. During summer and winter tourist seasons, there is no check on the part of concerned authorities to prevent hotel owners who take advantage of the situation and charge excessive amount from tourists.

What is the rank of Pakistan in tourism of all over world

 Pakistan was ranked 47 out of 200 countries in an analysis of the World Travel and Tourism Council's (WTTC) growth figures by Lovehomeswap.com, which said, "If the country becomes more peaceful, visitor numbers are predicted to rise.

New airline in  Pakistan 

Fly Jinnah will be Pakistan's fourth private airline after Serene Air, Air Blue and Air Sial. The latest entrant – Air Sial, debuted in late 2020 and is currently operating domestically with plans to fly to the Middle East at a later date.

However, except for Air Blue, none of the other airlines are in good shape because of the pandemic and the raging competition, the expert said. The entry of Serene Air in 2017 saw Shaheen Air, Pakistan’s second-largest airline, fold after almost 24 years of operation.