How the money works.
WHAT AGENCY REVENUE COMES FROM
Commission from suppliers Service and booking fees charged to clients Markup on packaged elements
Ancillary services: insurance, visas assistance, transfers
WHY COMMISSION ALONE IS INSUFFICIENT
Supplier commissions have fallen and they are thin.
WHAT THAT MEANS
Charging a service fee is necessary, and it must be explained.
WHAT TO ESTABLISH
What each booking actually costs you in time.
WHY
Complex itineraries consume hours and produce the same commission as simple ones.
WHAT TO CALCULATE
Revenue per hour of consultant time.
WHAT THAT REVEALS
Which work is worth doing.
WHAT OPERATOR REVENUE COMES FROM
The margin between what the package costs to assemble and what it sells for.
WHAT DETERMINES IT
Buying well Filling capacity Controlling cost during delivery
WHY FILLING CAPACITY MATTERS
Committed seats, rooms and vehicles cost the same whether occupied or not.
WHAT TO CALCULATE
Break-even occupancy for any committed capacity.
WHAT TO AVOID
Committing to capacity you cannot fill.
WHAT SEASONALITY PRODUCES
Concentrated demand and long quiet periods.
WHAT THAT REQUIRES
Reserves covering the quiet months.
WHAT TO TRACK
Bookings, average value, margin per booking Cancellations Client acquisition cost
