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How Travel Agents Make Money: Commission, Overrides & Perks Explained

(AKA: How we earn a living without selling our soul or living off hopes, dreams, and cheap instant coffee)

Let’s clear this up once and for all…

One of the most common questions travel agents get, right after “Can you beat this random price I found at 3am?” is:

“So… how do you actually make money?”

And honestly, it’s a fair question.

Because from the outside, we look like magical holiday fairies sprinkling sunshine and upgrades across the world for free.

But let’s be clear:

Travel agents are business owners.

And yes, we earn money.

And no, it’s not by adding £10 to your Gran Canaria package and hoping no one notices.

So today, we’re going deep into:

✨ How travel agents really get paid

✨ Where commissions come from

✨ What overrides are (and why they matter)

✨ Supplier perks, the REAL juicy secrets

✨ And how to make this industry actually pay you what you’re worth

Grab a drink.

This one’s going to clear things up AND make you feel wildly more confident explaining it to clients.

First things first: Travel agents DO NOT charge more than booking direct.

Let’s start with the myth that haunts us all.

Travel agents don’t add extra charges to bookings.

We don’t sit in the dark adding mystery markups.

We don’t charge “secret fees” that only appear when the moon is full.

The travel industry is built so that:

Tour operators, hotels & suppliers PAY the agent directly.

Why?

Because agents save suppliers a fortune in marketing and customer service.

We are literally their walking, talking, selling, problem-solving department.

So yes, the client pays the same (or sometimes less) than going direct…

and you earn commission for doing the work.

Everyone wins.

Except the people who still believe Thomas Cook is open.

(We can’t save everyone.)

So how do travel agents actually make money? Let’s break it down.

1. Commission - The Big One

This is the bread and butter.

The classic.

The Beyoncé of travel income streams.

When you book a holiday through a tour operator, hotel, cruise line, airline or supplier…

they pay you a percentage of the booking value.

This percentage varies depending on:

  • the supplier

  • the destination

  • whether it’s a package or flight-only

  • your host agency or franchise

  • whether you negotiated a higher rate (go you)

Typical commission examples (industry averages):

These vary wildly, so treat these as ballpark:

  • Package holidays: 10-15%

  • Cruises: 10-18%

  • Hotels: 8-12%

  • Tours & experiences: 10-20%

  • Car hire: 10-15%

  • Travel insurance: 25-40%

  • Airport lounges, transfers, extras: 10-20%

Commission is paid after the client travels.

Meaning the more you sell, the more consistent your monthly payouts become.

It’s a marathon, not a sprint…

but you CAN absolutely hit “I don’t need a boss ever again” income levels.

2. Overrides - The Secret Sauce of Travel Agent Income

Overrides are basically the industry’s version of a gold star sticker… but with money attached.

Think of overrides as performance bonuses from suppliers.

If you sell a certain amount of:

  • Jet2

  • TUI

  • MSC Cruises

  • easyJet Holidays

  • Hotelbeds

  • Attraction World

  • or any major supplier…

You may hit thresholds that unlock:

  • higher commission levels

  • cash bonuses

  • extra % added on top of normal commission

  • marketing funds

  • fam trip invitations

  • VIP support

Overrides are usually paid to the host agency or franchise - and depending on the company, you may get a percentage of them.

They’re not guaranteed.

They’re not promised.

But when they hit?

It’s a beautiful day.

Like when the sun comes out in the UK for 14 minutes.

3. Supplier Perks - The fun stuff 🎉

Let’s talk perks.

Travel agents LOVE a perk.

It’s half the reason we stayed in the industry after the Thomas Cook trauma era.

Common travel agent perks include:

  • Discounted hotel stays

  • Free or discounted flights

  • Heavily reduced cruise cabins

  • FAM trips (supplier-funded educational trips)

  • Exclusive upgrade opportunities for clients

  • Access to agent-only rates

And the best part?

Perks help you SELL more because:

  1. You learn the destination properly

  2. You have real photos + knowledge

  3. Your confidence skyrockets

  4. Clients trust first-hand experience

  5. You become the go-to expert for that destination

This is why I always say:

“Go on the trips. Do the training. Accept the fam invites. Your business will thank you later.”

4. Selling Extras (aka the Smart Agent’s Cash Cow)

If you want to grow your commission without constantly finding brand-new clients…

upselling is your new best friend.

Extras like:

  • Airport parking

  • Airport hotels

  • Transfers

  • Attraction tickets

  • Excursions

  • Travel insurance

  • Seat selection

  • Car hire

  • Theme park tickets

…all come with additional commission.

These add up FAST.

Like “That paid for my Christmas shopping” fast.

You’re not being pushy - you’re offering value.

Clients actually WANT the convenience of having everything booked in one place.

5. Service Fees (optional but powerful)

Some travel agents choose to charge service fees for:

  • bespoke itineraries

  • tailor-made trips

  • flight-only bookings

  • concierge services

  • after-hours support

  • trip planning sessions

This is COMPLETELY normal in the industry and massively undervalued.

Customers will happily pay a hairdresser £150 for highlights but think your Fiji itinerary should be free?

Not on our watch.

If you’re offering premium, personalised service - a service fee is absolutely justified.

So… how much can travel agents really earn?

This is where it gets juicy.

Travel agents can earn anywhere from:

  • £1,000 a month (part time)

  • to £5,000–£10,000 a month (established agents)

  • to £15,000+ months (specialists, group travel pros, cruise sellers, high-ticket experts)

Your niche matters.

Your consistency matters.

Your systems matter.

And your confidence definitely matters.

But the earning potential?

Unlimited.

Seriously.

How to Make More Money as a Travel Agent

Consider this your quick-fire strategy list:

✔ Pick a niche

Stop selling “everything to everyone.”

Become “the girl for Greece” or “the queen of all-inclusive Turkey.”

✔ Sell more packages, fewer bits-and-bobs

Packages = higher commission + easier workload.

✔ Focus on group travel

Groups = the Beyoncé of bookings.

✔ Build strong supplier relationships

Your Business Development Managers are GOLD.

Use them.

✔ Upsell extras

Every booking is an opportunity to add value.

✔ Improve your personal branding

People buy from PEOPLE they trust.

✔ Use December + January like your life depends on it

Because honestly… bookings fly at this time of year.

And finally… explain your value confidently.

When clients ask how you make money, say it proudly:

“Suppliers pay me a commission for handling your booking, so it doesn’t cost you any extra, and you get personalised support, expertise, and protection. It’s a win-win.”

You are not “just a travel agent.”

You are:

✨ an advisor

✨ a problem solver

✨ a client protector

✨ a travel designer

✨ and a business owner

Confidence sells.

Knowledge sells.

And you?

You’re getting both.

Want help turning your travel business into a booked-out, confident, CEO-level brand?

Then before you close this tab and wander off to scroll TikTok…

please hear me when I say:

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