How Does Commission Work With Online Travel Agents?

A travel agent makes a booking on behalf of their clients, and they earn money by charging a commission to suppliers for the services that they provide. In most cases, the exact amount that is charged varies significantly from service to service, but it is generally a percentage of the amount that the customer has paid.

Usually, the commission fee will be paid to both the agent and the client after the customer has made their final payment for the trip. This is usually after the trip itself has concluded. Each online travel agent has its own commission fee that varies from one to another. Commissions may range from 10% to 25% depending on the type of business. There is the possibility of charging a higher fee in exchange for a higher ranking within the search results. A trade-off is that an OTA can help those in the hotel industry to sell rooms, but it will also undoubtedly be one of their most costly distribution channels because it can help them to sell more rooms.

As a travel reservation system software, OTRAMS is the most suitable solution to meet the needs of travel agents and agencies, travel portals, consolidators, destination management companies, and hotel resellers. In order to meet the needs of your business, OTRAMS offers you a wide variety of features that can be easily customized to meet your needs.


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