A major chunk of revenue continues to come from commissions and service fees. But the source of these commissions has been changing over the years.
When airlines stopped paying high commissions back in the 1990’s, travel agents started to lean heavily on add-on services such as hotel and transport for commissions.
With services such as Airbnb and Uber now available in almost every major city, commissions from these services too are likely to dwindle in future.
At present, travel agents depend on two categories of travelers for their revenue. A good number of corporate business travelers still rely on partner agencies for their tickets.
In the consumer segment, holiday packages and custom itinerary planning services have been taking off with an increase in international holidaying. The drop in commissions is mostly made up for by the corresponding rise in the scale and value of such bookings