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Most travel agents who earn commission booking tickets on airlines earn 5% on domestic flights and 10-20% on international flights. The commission rates are similar for booking hotels.
An agency agreement is a legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements.
Travel agents make money by a salary if they work for big travel agencies. Travel agencies may also pay their employees an additional commission or extra pay, based on how much business the travel agent books.
Travel agents usually sell packages, they have bought from various tour operators. Tour operators look into all the aspects of a vacation, they plan almost each and everything. While, travel agents sell packages to their clients on the basis of where do their clients actually want to go.
Not all independent travel agent contracts are created equal. Just like any business, host agencies vary in size and amount of resources at their disposal. They may not be spending the majority of their time creating a pitch-perfect contract for their ICs.