Question 1

How do I determine my 'Average Booking Value'?

Accepted Answer

To get an accurate average, sum the total value of all your bookings over a specific period (e.g., a month or quarter) and divide it by the number of bookings you made in that same period. Use historical data for the most reliable forecast.

Question 2

What if I have different commission rates for different products?

Accepted Answer

This calculator uses an average commission rate for simplicity. For a more precise forecast with varied rates, you should calculate the commission for each category of booking separately (e.g., flights at 5%, tours at 15%) and then sum the results. Alternatively, calculate a weighted average rate for use in this tool.

Question 3

How far into the future can I reliably forecast?

Accepted Answer

Forecasting is typically most accurate for the short-term (e.g., the next 1-3 months). The further out you go, the more variables (seasonality, market trends, economic shifts) can impact your results. It's good practice to create forecasts for different time horizons (monthly, quarterly, annually) and update them regularly.

Question 4

What's the difference between booking value and commission revenue?

Accepted Answer

Booking value (or Gross Booking Value) is the total price the customer pays for the travel product. Commission revenue is the portion of that booking value that the supplier (e.g., airline, hotel) pays to you, the travel agent, for facilitating the sale. Your agency's income is the commission revenue, not the total booking value.

Question 5

How can I increase my commission revenue?

Accepted Answer

You have three main levers: Increase Booking Volume: Sell more products through effective marketing and sales.Increase Booking Value: Focus on selling higher-priced, premium products or upselling customers.Increase Commission Rate: Negotiate better commission rates with your partners or prioritize selling products from suppliers who offer higher commissions.

Commission Revenue Forecast Tool

Results

Understanding Commission Forecasts

Frequently Asked Questions

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