Understanding Travel Agent Commissions: Why We Charge for Our Time

At Jess.Travel, we’ve redefined how travel planning works. Unlike typical travel agents, we charge a flat $99 per travel day planned, freeing us from reliance on commissions and ensuring we deliver unbiased, top-tier service to our clients. As a hosted Jess independent agent, you get to set your travel planning fee, and we take none of it.

Why No Airfare? We don't book airfare due to the minimal-to-zero travel agent commissions and high liability. Instead, we focus on areas where we can add real value to your trip—hotels, cruises, tours, and more. We will still consult for the client on their route, but we start our business with them once they send us their flight info. There is no worse position to be in than between a client and an airline.

What You Can Earn as a Travel Planner

When you're a personal travel planner, like those with Jess.Travel, commissions from suppliers can still make up part of your earnings, but charging for your time ensures steady income. Here's a breakdown of commission opportunities:

Travel Agent Commissions Breakdown:

• Hotels/Villas: Commissions range from 5-15%, with boutique and luxury hotels often offering higher rates.

• Cruises: A very lucrative area, offering 10-20% commissions depending on the cruise line and itinerary. Also major personal incentives for booking groups.

• Tours & Packages: These typically offer 8-20%, with all-inclusive packages often providing better returns.

• Car Rentals: Generally 5-10% commissions.

• Travel Insurance: A high-margin product with commissions up to 26%.

As a modern custom travel planner charging a per travel day fee, the net income per trip can vary depending on the trip’s complexity and duration.

For example, a week-long trip involving five days of detailed planning would bring in $495 from the planning fees alone. On top of that, you can expect to earn commissions from hotels, tours, cruises, or insurance. If, for instance, you book a hotel stay with a 10% commission on a $2,000 booking, that’s another $200. Combining service fees and commissions, a typical trip could easily net a planner between $700-$1,200, depending on the scope and types of services booked.

This model ensures that you are compensated fairly for your time and expertise, while commissions provide an additional boost to your earnings. Keep in mind that larger trips or high-end bookings could significantly increase these figures.

Charging for your time with a planning fee and supplementing with commissions gives you a consistent revenue stream, while freeing you to provide the best options for your clients.

The host agency's cut

As a new travel planner, you'll likely choose to affiliate with a host agency. A host agency, like Jess, provides independent planners with essential support, resources, and access to better commission rates from travel suppliers. Think of it as running your own small business but with the backing of a larger company.

By partnering with Jess.Travel, you'll leverage our industry relationships and buying power, allowing you to focus more on growing your client base and delivering top-tier service. For new planners, we provide structured guidance, helping you break into the industry with confidence. You'll have direct access to Jess for travel planning and Joe for all things marketing and business development. I told you this is boutique.

Jess and all other host agencies take a cut of your commissions. Since Jess has zero monthly fees, we start at 50%. Once you've hit your first tier, you'll level up to 80/20 in your favor. The next tier up gets you to 90/10.

How host agencies handle commission payments

When it comes to payments, we handle the heavy lifting. Jess.Travel simplifies commission tracking and payments, with our team managing invoicing, tracking, and direct deposit payouts, so you can focus on what you do best—creating unforgettable travel experiences for your clients. Honestly, this is the worst part of the whole sha-bang.

Ready to become a custom travel planner with Jess' help?

And as always if you're looking for a boutique travel planning host agency with an anti-corporate, zero monthly fee, non-MLM, anti-sales quota, family atmosphere - we'd love to talk.