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Compensation  >>   Sales Compensation for Travel Agents Search Discussion Posts
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Sales Compensation for Travel Agents  
Posted: 12/16/2009 08:59am   48 Views

Would anyone be willing to share how they are adjusting their incentive program for Travel Agents?  Due to the economy and the lingering effects of 9/11 the travel industry is still struggling.  As travel vendors and airlines have lowered fares to increase sales and added additional charges for travelers (such as checked baggage fees) to offset the fare decrease commissions to travel agents have significantly decreased or vanished all together.  Our current plans weigh heavily on the amount of commission the company earns, but as our agents are selling just as many travel packages or airline tickets the commission revenue continues to be less which in turn makes it more difficult for travel agents to achieve their revenue goal. Any creative ideas related to travel commissions/incentives that you would like to share would be helpful!!


Sales Compensation for Travel Agents  
Posted: 12/16/2009 11:47am  

I would consider adjusting your travel agent revenue targets downward, according to the falling airline prices.


Sales Compensation for Travel Agents  
Posted: 12/16/2009 12:09pm  

That would assure that the agent made more money, but whence would the pay distribution come?  How would the travel agency collect more money for their placement of those lower-cost buys so they could share the "profits" with the salesperson?  To equalize the incomes of both agency and agent, you might consider altering the formula to incent larger numbers of low-cost travel junkets.  Lower fares are typically offered as inducements to encourage travel among those put off by costs, so all parties are hoping to break even through greater volume. 

Maybe suggest different marketing techniques, like

  • contacting proven veteran travellers to promote the unprecedented limited-time specially discounted offers
  • focusing on carriage trade buyers for whom cost is no object who can now buy imperial packages for presidential prices
  •  cutting deals for group contracts with school or club or religious group tours.

Those are not technically "compensation" suggestions... even though they might produce the cash flow for appropriate incentive pools as the compensation output result.

Comp people should be business people first (and psychologists or economists second) in order to be reward specialists third. 


Sales Compensation for Travel Agents  
Posted: 12/17/2009 05:14am   Revised: 12/17/2009 06:05am  

Some thoughts:

  • Perhaps, it is time to consider a new incentive program, based on the number of sales rather than the amount of sales, or a combination of revenues and numbers.
  • I asume your company is still profitable in this environment of lower revenue. If so, I would consider revising your incentive plan so that the agents get something for their efforts, a reduced amount. It sounds like you have an all or nothing type plan. In other words, develop a scale of rewards based on a sliding scale of revenue generated.
  • Do you think that this organization can give you good ideas? http://www.nacta.com/AboutUs.aspx


Sales Compensation for Travel Agents  
Posted: 12/17/2009 10:37pm  

Adjusting your targets are a short-term fix.  It may be time to review the pay mix and redesign your incentive plan.  It would be helpful to find some surey data to help with your decision making.


Sales Compensation for Travel Agents  
Posted: 12/30/2009 07:45am  

Thanks to each of you for your suggestions!

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