Hotel commission most important income source for agents
March 13, 2008 | Hospitality Industry
Since airline commissions were cut, the focus on hotel commissions by travel agents have increased manifold. A new survey of 200 travel companies finds now that hotel commissions are the most important source of income for most agents, followed by airline commissions/overrides and transaction fees.
Net Trans, a company specialising in recovering hotel commissions for travel agencies and other hotel bookers have just completed their annual survey and for this year, agents were asked which of their suppliers are the most important as a source of income. More agencies named hotel commission than any other source. 86 % of agents put hotel commissions as one of their three most important income sources, next on the list were airline commissions/overrides with 70 % and transaction fees with 64 %.
The survey represents over 200 company responses from all over the world. There were clear geographical differences with the UK, Ireland and Germany scoring highest on considering hotel commissions as the most important revenue source. Martin Jorgensen, Chief Executive Officer of Net Trans, was delighted about the results:
“Since airline commissions were cut, the focus on hotel commissions have increased manifold which we see in the huge increase of customers who wish to secure that they recover all of their commissions and have therefore joined Net Trans the last few years. This is reflected in 98 % of larger agencies and TMCs considering Net Trans to be an important supplier, proving that recovering hotel commission is a focus area for the travel agency community.”
Another result of the survey indicated that the main thing agents focus on when joining Net Trans is the increased commission and secondly the lower administrative cost. Martin Jorgensen commented:
“Obviously the bottom line increase is the most visible and obvious but it is nice that people recognise both the lower in-house administrative cost, the savings on bank charges and the faster payments that NetTrans achieves for them”.
Overall, the satisfaction levels with Net Trans services have increased in the last year. Jorgensen continued: “Our increased efforts in communicating and training our agents have meant that more of them make use of the product to it’s full extent and that has resulted in increased commission payments, in fact 99% of larger agencies and TMCs would recommend us to others. We will not rest on our laurels but aim to continue the improvement in our services in 2008.”
Related Articles
Hotels increasingly offer pre-pay discounts
18 Mar, 2010 | Hospitality Industry
Luxury hotels lift rates, as tourists return
18 Mar, 2010 | Hospitality Industry
As rates decline, hotels upping surcharges
18 Mar, 2010 | Hospitality Industry
Top ten best practices for today’s online hotel marketer
17 Mar, 2010 | Hospitality Industry
Starwood launches global limited time offer room sale
17 Mar, 2010 | Hospitality Industry
Five creative strategies for hotels to attract new repeat guests
17 Mar, 2010 | Hospitality Industry
O’Rourke launches Smartstay iPhone app to open mobile channel for hotels
17 Mar, 2010 |
How have Web 2.0 & social media shaped online hotel marketing?
16 Mar, 2010 | Hospitality Industry
Recovery over a year away, say European hotel executives
16 Mar, 2010 | Hospitality Industry
Marriott on best practices in hotel-OTA relationships
16 Mar, 2010 | Hospitality Industry
Most Popular Articles
Does your hotel really need a social media strategy?
11 Mar, 2010 | Hospitality Industry
How TripAdvisor engages mass influencers
12 Mar, 2010 | Online Travel
6 ways to drive more online travel sales in 2010
11 Mar, 2010 | Online Travel
Top ten best practices for today’s online hotel marketer
17 Mar, 2010 | Hospitality Industry
Why should I open your e-mail?
09 Mar, 2010 | Internet Marketing
The need for a more holistic approach to revenue management
10 Mar, 2010 | Hospitality Industry
How have Web 2.0 & social media shaped online hotel marketing?
16 Mar, 2010 | Hospitality Industry
Google Marketplace drives corporate travel apps
15 Mar, 2010 | Online Travel
Starwood runs loyalty pilot program that targets rivals’ customers
15 Mar, 2010 | Hospitality Industry
Five creative strategies for hotels to attract new repeat guests
17 Mar, 2010 | Hospitality Industry
Economic Downturn
Recovery over a year away, say European hotel executives
16 Mar, 2010 | Hospitality Industry
China expected to stimulate world travel economy in 2010
16 Mar, 2010 | Online Travel
IATA sees brighter 2010 outlook
15 Mar, 2010 | Online Travel
Virgin America’s guide to not screwing up customer service
12 Mar, 2010 | Internet Marketing
UK travelers plan to take multiple trips abroad in 2010
09 Mar, 2010 | Online Travel
Un-stoppable growth in OTA bookings, GDS still lacking behind
05 Mar, 2010 | Online Travel
Global hotel prices dropped beyond 2004 levels during 2009
02 Mar, 2010 | Hospitality Industry
Things are looking up for U.S. airlines
02 Mar, 2010 | Online Travel
Asia leads travel industry’s recovery
26 Feb, 2010 | Online Travel
Meeting buyers see budget cutbacks ease
25 Feb, 2010 | Hospitality Industry
Travel companies grapple with “new normal”
23 Feb, 2010 | Online Travel
Europe likely to see recovery, not growth, says STR
22 Feb, 2010 | Hospitality Industry
Hogg Robinson Group sees early signs of recovery
22 Feb, 2010 | Online Travel
US Travel growth expected in 2010
18 Feb, 2010 | Online Travel
IHG’s profit drops 18%, as hotel rates continue to fall
16 Feb, 2010 | Hospitality Industry












