Secrets to providing steady income with less effort per booking
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In this article, we are going to break down FIT (Flexible Independent Travel) and group/escorted travel. As travel agents gain more experience, they may want to book more group or escorted travel. We break down both, below.
Both FIT and group/escorted tours can be profitable. Many successful agents incorporate both into their business model. FIT trips may offer higher per-booking commissions but require more work, while group tours can provide steady income with less effort per booking. Ultimately, the best approach depends on your target market, skills, and business goals.
With FIT clients, you can emphasize flexibility and customization abilities. And for those clients preferring group travel, you can highlight convenience structure, and social aspects.
Key selling points for both FIT (Flexible Independent Travel) and group/escorted travel, which can help travel agents tailor their approach to different types of clients:
FIT Clients
For clients interested in FIT travel, emphasize:
- Flexibility: FIT travelers have the freedom to adjust their itinerary as they go, allowing for spontaneous changes and discoveries.
- Customization: Itineraries can be highly personalized to match the traveler's specific interests, preferences, and pace.
These aspects appeal to travelers who value independence and want a unique, tailored experience. Read more about FIT on our article: Ultimate Guide to Flexible Independent Travel (FIT).
Group Travel Clients
For clients preferring group or escorted tours, highlight:
- Convenience: Everything is pre-arranged, from transportation to accommodations and activities, reducing planning stress for travelers.
- Structure: A set itinerary provides a clear plan for each day, which can be reassuring for some travelers.
- Social Aspects: Group tours offer opportunities to meet and interact with fellow travelers, which can be especially appealing for solo travelers or those seeking a more social experience.
Read our article: Our Complete Guide to Group or Escorted Tour Travel.
By emphasizing these different aspects, travel agents can better match clients with the type of travel that suits their preferences and expectations. This approach helps ensure client satisfaction and can lead to repeat business and referrals.
As a travel agent, you can potentially earn larger commissions from both FIT (Flexible Independent Travel) and group/escorted tour trips, but there are some key differences to consider:
FIT Trips
FIT trips often have the potential for higher commissions per booking due to their customized nature:
- You can charge higher service fees, with the median fee for FIT bookings around $200.
- Clients booking FIT trips tend to spend more overall, which can lead to higher commissions.
- You have more control over pricing and can potentially negotiate better rates with suppliers.
However, FIT trips require more time and effort to plan, which may limit the number of bookings you can handle.
Group/Escorted Tours
Group and escorted tours can also be lucrative:
- They often have higher overall booking values due to including multiple travelers.
- Tour operators may offer higher commission rates for group bookings.
- Less time-intensive to book, allowing you to handle more bookings.
Some travel agents report significantly higher earnings from group travel. One agent mentioned bringing in AUD $100K-200K in commissions annually specializing in groups.
Factors Affecting Commissions
The actual commission potential depends on several factors:
- Your expertise and niche
- Relationships with suppliers
- Volume of bookings
- Commission split with your host agency (if applicable)
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