The quest for nonrecallable commissions
For a business owner, it's solid advice at any time, but it's particularly salient for travel advisors right now.
While many advisors have reported good business on the books, there have also been a number of speed bumps of late: Wave season hasn't exactly panned out as many hoped; The omicron variant of Covid-19 has brought its own impacts; And the Crystal Cruises operational hold has resulted in a lot of scrambling and uncertainty.
That's why Avoya Travel, the Fort Lauderdale-based host agency, is focused on following the money.
"In today's environment, we continue to focus on where the Avoya network can make money now and in the future," co-CEO Jeff Anderson said.
To do that, Anderson advised agents to look to suppliers who can help. Some are guaranteeing a commission, even if a client cancels because of Covid-19, he said. Others are providing a nonrecallable booking incentive in the form of $100 or $200 paid at the time of the booking.
"These suppliers are investing in the travel distribution channel and understand that cash flow is imperative for the frontline agent as well as ensuring they are being paid for the sale and servicing of these clients," Anderson said. "Many travelers are being rebooked two to three times since the beginning of the pandemic, and travel advisors are pivoting to brands where they feel confident they are going to receive commission for their efforts and, better yet, an incentive at the time of the booking for their hard work."
The idea of a booking incentive is similar to something Anderson, and other agency executives, have been calling for for some time: earlier, nonrecallable pay for advisors.
Anderson calls the concept a "booking commission." Suppliers would pay agents a portion of their commission at the time of booking and to reward them for their work, it would be nonrecallable. While Avoya has been working to strike deals enabling this with suppliers, Anderson has been a vocal proponent of it becoming an industrywide standard.
He does believe more suppliers will make moves to offer some type of booking commission, especially as he believes the trade will reward them by increasing their market share of business.
