Many people are unclear about the worldstravelonline industry. Travel agents are often thought to be the same as real estate agents. Becoming a travel agent or more specifically a home based travel agent is an exciting career change or retirement option. Some people do it full time while many do it as a part time business.
A travel agent books travel for customers and is paid by suppliers a commission on the booking. For bookings that suppliers do not pay a commission on, a travel agent also can charge the client a service fee for his/her time. An example is if you were to book a hotel for a client, the hotel would then send a check to the agency after the client checked out. Most hotels pay 10% of the price of the hotel before taxes and fees. A $100 per night hotel reservation would mean $10 a night for the travel agent who made the booking. This hotel would cost the same whether the customer uses a travel agent or books through the hotel directly. In many cases the travel agent can get a better price. It costs the customer nothing to use the travel agent unless the travel agent charges service fees.
Can anyone do this? In order to work with suppliers, you must have an account set up with the supplier. Most require an agency to hold an IATAN, CLIA or ARC number. IATAN stands for International Airlines Travel Agent Network. CLIA stands for Cruise Lines International Association. ARC stands for Airline Reporting Corporation. Each of these memberships requires different things including sales, money in the bank, experience or training in the industry, and membership fees. Many will require Errors and Omissions insurance of $1,000,000 or more.
For the average travel agent, membership is not a possibility with some organizations so the agent will team up with an agency and work as an independent agent or outside agent. There are also advantages of working with an agency because most travel agents cannot make enough in sales with a particular supplier to obtain higher commission levels and bonuses. Working with an agency with many agents can increase the commission percentages the agent gets because of the joint sales of all the agents at the agency. Support is also a very important aspect of being a successful agent. Agents who do not work with others tend to feel more isolated and have to learn to do it all solo. Since no agent can have the experience of being everywhere in the world or staying at every hotel or resort, having others that you can get advice from is really helpful.
The future of travel agencies is always questioned. The truth is the industry has changed in many ways. Some changes were for the better, some for the worse. Many airlines have cut commissions for travel agents. However, there are many other suppliers who are paying travel agents more than they were ten years ago. Cruises used to be booked by only the rich and now people in every income book cruises. Each year more and more people go on cruises. Most people say they want to go on a cruise at least once and many who go on their first come home to want to book another.