A travel agency is a business that sells travel related products and services, particularly package tours, to end-user customers on behalf of third party travel suppliers, such as airlines, hotels, tour companies, and cruise lines. This form agreement only deals with the sale of lodging to a particular hotel for a commission. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Hotel Commission Agreement With Broker
State:
Multi-State
Control #:
US-01466BG
Format:
Word;
Rich Text
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How to fill out Agreement Between Travel Agent And Hotel Owner To Sell Lodging At Hotel In Return For A Commission?
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FAQ
A travel agent makes money by charging fees for separate elements of travel. For example, instead of charging a commission for booking tickets with airlines or hotel rooms, travel agents earn money by charging a service fee for each booked part.
Travel agents make money by a salary if they work for big travel agencies. Travel agencies may also pay their employees an additional commission or extra pay, based on how much business the travel agent books.
The commission is paid to the travel agent. For most trips, the vendor pays commission to the travel agent after the client has traveled. For most cruises, the travel agent is paid their commission after final payment (typically about 60-90 days before the sailing).
A 7% 8% commission level is somewhat standard with host agencies working with self sufficient agencies. Independent travel agents earning 90% 100% of the commission are usually high volume seasoned agents that require little to no support from the host agency.
So, in its simplest form, if the hotel advertises a room for $200 and has a published ten percent commission policy and you book a client at that rate, the commission is earned. If the hotel walks the client, you are still entitled to the commission.