Travel Agents

Travel agents earn income from commissions paid by hotels, car rental companies, cruise lines, and tour operators. Due to the popularity of Internet travel sites, which enable customers to book their own flights, airlines no longer pay commissions to travel agents. This has been a big blow to those in this career, and it is a trend that will probably continue.

Travel agents typically earn a straight salary. In May 2019, salaries of travel agents ranged from $23,660 to $69,420, with a median annual wage of $40,660, according to the U.S. Department of Labor. In addition to experience level, the location of the firm is also a factor in how much travel agents earn. Agents working in larger metropolitan areas tend to earn more than their counterparts in smaller cities.

Small travel agencies provide a smaller-than-average number of fringe benefits such as retirement, medical, and life insurance plans. Self-employed agents tend to earn more than those who work for others, although the business risk is greater. Also, a self-employed agent may not see much money for the first year or two, since it often takes time to establish a client base that is large enough to make a profit. Those who own their own businesses may experience large fluctuations in income because the travel business is extremely sensitive to swings in the economy.

One of the benefits of working as a travel agent is the chance to travel at a discounted price. Major airlines offer special agent fares, which are often only 25 percent off the regular cost. Hotels, car rental companies, cruise lines, and tour operators also offer reduced rates for travel agents. Agents also get the opportunity to take free or low-cost group tours sponsored by transportation carriers, tour operators, and cruise lines. These trips, called "fam" trips, are designed to familiarize agents with locations and accommodations so that agents can better market them to their clients.