Commissions

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Commissions
Introduction:
Intermediaries are often used by airlines, theme parks, restaurants, hotels, etc. because they make the suppliers’ services available to large numbers of potential customers in a cost-effective way. Among some of the functions performed by intermediaries, or travel agents, are providing information about the types and availability of service offerings, contacting current and potential customers, making reservations and other travel arrangements, assembling services to meet customer needs, and preparing tickets. The expenses incurred through using intermediaries occur in the form of commissions and arise when the service has been sold or used. The supplier then pays the intermediary this commission on each ticket sold or reservation used. The commission is based on the level of sales, which is referred to as “bookings.”
In few cases, the consumer may pay a small service fee, but for the most part the commission is paid by the supplier (Cook, 54).
Relevance to travel industry:
In many sales jobs, commission is vital not only to the employee receiving it, but also to the business for which the employee works. The employee obviously benefits because the harder they work, the more likely they will be to make a sale and receive a commission. The employer benefits because commission is more of an incentive for an employee to work harder and make sales, and thus the employer makes more money also. The consumer, however, does not benefit as much because the sales person is, often times, looking at the consumer as a number or a dollar figure instead of as a person with specific wants. The sales person is more likely to push something onto the consumer even if they do not want to purchase it in their own self-interest.
When the traveler books a tour vacation, which is with a large group of people, the traveler has options to participate in activities that are not on the itinerary. If they ch...