A Commission is a percentage of a travel product's price that is returned to the distributor when the Product is sold.
In the context of travel, transport, and hotels, commission refers to a fee that is paid to an agent or salesperson for selling a product or service. This fee is usually a percentage of the total sale and is paid by the company or supplier to the agent or salesperson as a form of compensation. Commissions are often used to motivate and reward agents and salespeople for their efforts in generating sales and revenue for the company.
Examples of commission in the travel, transport and hotel context include:
- Travel agents who earn a commission for selling airline tickets, vacation packages, and other travel-related products and services.
- Car rental agents who earn a commission for renting out cars to customers
- Salespeople who earn a commission for selling hotel rooms and other accommodation services
- Tour operators who earn a commission for selling tour packages, which include transportation and accommodation services.
- Salespeople who earn a commission for selling travel insurance products.
- Tour guides who earn a commission for guiding tourists through different locations and attractions.
Commissions play an important role in the travel, transport, and hotel industry as it is a way to incentivize and compensate agents and salespeople for their efforts in generating sales and revenue for the company. Commissions also help to ensure that agents and salespeople are motivated to provide excellent customer service and to promote the company's products and services.