Is the commission-only model obsolete?

Commission-only remuneration has been the heartbeat of our profession for as long as I can recall. It has fuelled our early mornings, our long nights and our unwavering dedication to serving clients. But, as I sit here today, navigating the ever-evolving terrain of the modern travel landscape, I have to ask: is this model still working? Or is it holding us back from our full potential?

The short answer? For some, yes, it works. But for many of us, especially independent agents/small agency owners, the cracks are showing – and the time for change is now.

Let’s be real: we’re not in the business of ‘order taking’ or just ‘booking trips’. We are storytellers, problem solvers, travel strategists; we make dreams come true. Sometimes we are emotional lifelines for our clients. The depth of knowledge/level of service we provide in 2025 is way beyond what our industry looked like a decade ago. Yet the compensation structure remains largely unchanged; in some cases, it’s shrinking.

Commission margins are tightening. Supplier policies are more restrictive – no commission on flight upgrades etc. Although luxury operator partners still offer solid commissions, they’re often not enough to sustain the countless hours we spend researching, customising, troubleshooting and following up. We’re delivering white-glove service on a shoestring, and it’s just not sustainable.

Know your value 

That mismatch was made painfully clear in the pandemic. As travel came to a halt, so did commissions, but our work didn’t stop. We refunded, rebooked, negotiated, advocated – and we did it all for free. If that experience didn’t spark a shift in how we value our time and expertise, I don’t know what will. Now, more than five years since the start of the pandemic, little has changed in terms of the way we generate our earnings.

Should ‘we’, as a collective industry, make a conscious decision to pivot to a hybrid model, blending traditional commission with planning fees, design retainers and premium service charges? 

"I believe pivoting to a hybrid model of commission and fees would stabilise revenue and elevate how we’re perceived."

I truly believe it would make a difference. It would not only stabilise our revenue but also  elevate how clients perceive our worth. We would no longer be ‘just travel agents’ but recognised for our wealth of knowledge and expertise; we are, after all, travel advisors, consultants and creators of life‑changing experiences.

Would clients ‘get’ it? I think so. When you position your expertise with confidence, clients are more than willing to invest in the service. They want a trusted professional in their corner, especially in a world where DIY travel has become overwhelming, and uncertainty still lingers.

Rethink success 

This segues nicely into the retention of great talent. How can we expect to attract and retain passionate professionals if the way forward is commission-only? Too many brilliant advisors leave simply because they can’t make the numbers work – not for lack of talent, but because the model is no longer fit for purpose. It’s time we rethink what success looks like in our profession.

Imagine a travel industry where your income reflects your impact. Imagine mentoring new advisors into an industry that respects their time, and pays them fairly. That’s the future we should be building – and it starts with us.

Commission still has its place; it will always be part of the puzzle. But it can no longer be the entire picture. Diversified income – including planning fees, retainer models, loyalty programmes and premium consultations – is the key to helping us to grow stronger, smarter and more-sustainable businesses across the industry as a whole.

We are in the business of creating magic, of making the impossible possible. It is time our compensation structure reflected that.  

To every travel advisor out there who has ever questioned their worth, let this be your reminder: you are the expert, and deserve to be remunerated accordingly. The industry is changing – let’s lead that change, together.