Commissions and pricing

Travel distributors usually work on a commission basis, so it’s important to factor this into your pricing as a cost of sales rather than an extra expense. Your pricing should be consistent, accurate, and competitive, taking into account all costs, commissions, and your profit margin.
Set prices based on competitor rates, what your target market will pay, fixed and variable costs (like credit card fees), seasonality, and distribution costs.
Each level in the travel trade — inbound operators, wholesalers, online and retail agents — earns a different commission, generally ranging from 5–30%.
If you sell through the travel distribution system, ensure your rates clearly distinguish between net and gross (retail) and always protect your pricing structure. Visitors should see the same gross rate regardless of where they book. While reducing distribution layers might seem to save on commission, it can also limit your international reach.