One of the most important pieces of information you need to know before you choose any career path is what are the income potentials. For travel agents, that number varies. In an industry that generates over 7 trillion dollars annually, the income potential is limitless. However, to give you a realistic perspective on what the average full-time travel agent makes, that amount will fall anywhere between 30 – 45 thousand US dollars annually. Travel agents who are top sellers make anywhere from 90 – 120 thousand dollars a year. Top sellers are made up of niche market specialists. From there, it jumps up to the many successful online booking websites grossing annual profits in the millions and a handful in the billions. Many of those online booking sites were once just a regular travel agent or small agency.
There are two types of travel agents, and how you earn will depend on which one of those options you choose.
Inside sales agents
Inside sales agents are travel agents that work as employees for travel agencies, or tour operators. These agents normally work on a set annual salary, and in some scenarios, they will also earn a commission bonus based on minimum sales. If you want to a low-risk way to gain experience in the industry, this is a great way to do it. However, your earning potential will most likely not be more than around the 40K mark.
Outside Sales Representatives (OSR’s)
Outside sales representatives are independent travel agencies working on their own. However, they sell under the registration number of a host agency, which they pay a fee for. As an OSR, your earnings are 100% commission based. When you sell travel products and service, the product vendor will pay a commission check for the sale to host agency under which you operate. The host agency will take a fee from that commission, and the rest is paid to you. Travel agents earn anywhere between 10% - 15% on a hotel or package booking on average. Flight commissions are normally between 5% & 7%, and commissions earned on selling travel insurance could be as high as 45%. The average consumer will spend approximately $2500 on an all inclusive vacation package.
Most travel agents prefer to work as Outside Sales Representatives, as the income potential is way higher, as well as the benefit of owning your own business and working from any location on your schedule. Outside sales agents also get to benefit from low-cost FAM Trips (Familiarity Trips), preferred vendor discounts on personal travel plans and many other travel perks available to travel agents.
