For decades, the travel industry has trained independent agents to measure success by one number above all: their commission split. On paper, it’s an easy metric – bigger is better, right? But in 2025, as global market forces transform how advisers are valued and compensated, that old logic is fast becoming obsolete.
Today’s most profitable and resilient independent travel businesses are succeeding because they’ve shifted focus to what truly grows their bottom line: professional fees, premium services, repeat clients, and smart use of network resources.
In fact, new research from the World Travel Agents Associations Alliance (WTAAA) shows that markets leading this transition are seeing up to 20% higher profit margins and a dramatic boost in business stability.
So, why are so many agents still fixated on commissions alone? And what does it actually take to build sustainable profitability? Here’s what you need to know.
Why ‘highest split’ thinking falls short
The headline split rarely reveals what it actually takes to run and grow a successful business, such as marketing costs, technology fees, access to premium products or supplier deals, and time spent on admin instead of selling or nurturing clients.
It also overlooks risk. When suppliers slash commission rates (as airlines have done repeatedly) or when booking volumes fall during downturns, agents who rely solely on splits find themselves exposed. Meanwhile, those with diversified income streams (consultation fees, project-based pricing, recurring premium services) are far better equipped to weather uncertainty and plan for growth.
Most importantly, chasing commissions can become a trap that keeps advisers acting like intermediaries rather than entrepreneurs. True business-building means developing high-value client relationships and leveraging every tool – from marketing support to exclusive product access – to create sustainable revenue well beyond any single transaction.
What the WTAAA data reveals
According to WTAAA’s 2025 white paper ‘Travel advisors worldwide are charging professional fees. Are you ready?’, travel agencies in some of the world’s most competitive markets are thriving by steering away from pure commission models.
Consider New Zealand, where an astonishing 95% of agencies now charge professional fees in addition to (or even instead of) traditional commissions. Across Europe, two-thirds of firms have adopted similar strategies, using consultation deposits and project-based pricing as core elements of their business model. The results? Agencies that made this transition report profit margins up to 20% higher and enjoy far greater predictability over cashflow, even when supplier rates fluctuate.
What drives this success? WTAAA data shows several key factors:
- Predictable revenue streams: Professional fees create income stability, regardless of booking volumes or supplier policy changes.
- Stronger client relationships: Agents position themselves as trusted consultants rather than order-takers, increasing loyalty and repeat business.
- Clear value communication: While as many as 70% of clients initially resist paying fees, consistent education flips the script, and most come to see these charges as a mark of professionalism.
Ultimately, sustainable profitability means adopting new business practices that reflect how value is delivered – and recognised – worldwide.
Business-building strategies that outperform splits
So, what separates agents who merely collect commissions from those who build truly profitable, future-ready businesses? The answer lies in adopting a set of business-building strategies proven to outperform high splits alone. Here’s how forward-thinking advisers are shifting their approach:
1. Adopt professional service fees: Stop giving away your expertise free. WTAAA data shows that agencies introducing consultation fees or project-based pricing see up to 20% higher profit margins and much greater income predictability, even if some clients initially resist. The secret is clear value communication: explain how your knowledge, research, and troubleshooting save clients time and money.
2. Prioritise high-value, repeat clients: Instead of chasing a volume of one-off bookings for marginal returns, focus on nurturing long-term relationships with premium travellers or corporate accounts. Use CRM tools (often included in modern network memberships) to personalise service and create tailored offers that keep clients coming back (and referring others).
3. Leverage supplier exclusives and upselling opportunities: Networks with strong supplier partnerships open doors to exclusive products, better rates, and unique experiences you can’t get elsewhere, enabling you to upsell confidently and differentiate your offering from online competitors.
4. Reinvest time into business development: When admin tasks and marketing are streamlined through bundled support services or community know-how, agents win back valuable hours each week. Invest this time into sharpening your brand presence, developing new specialisations (like luxury or adventure), or pursuing strategic partnerships.
As global trends and agent success stories show, true profitability in travel is about building a business with diversified income, resilient client relationships, and smart use of every tool at your disposal.
The most successful agents we see today are those who stop thinking like intermediaries and start acting like business owners. When you focus on creating real value – for your clients and for yourself – profitability follows naturally.
