Are Commercial or Private Flights Better for Travel Agents?

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Travel agents can choose from endless possibilities when creating revenue for their travel business. Commercial flights and private jet charters are two different modes of travel. Both require travelers to pay a fee for the privilege of boarding. However, these two types of travel modes have some differences.

Fixed Commission vs All-in Price

Travel agents have contracts with airlines to receive a fixed commission from selling travel packages. However, a private jet charter from Los Angeles and online travel agencies make it easier for airlines to connect with travelers. Travel agents receive their commissions from accreditation numbers. When they call to book flights, the supplier asks for the travel agency's accreditation number and pulls it up in their system. This number tells the supplier where to send the commission.

The process of getting a commission in the charter industry is a little different. Travel agents have to go through a broker to book a charter flight. When a client charters a plane, they receive an all-in price, including the travel agent's commission.

The client pays the commission instead of coming out of the broker’s fee or from the airline. The amount of the commission depends on the agreement between the agent and the broker. The agent's commission is part of the all-in price presented to the client chartering the flight. If you purchase a charter flight and it gets canceled, then the charter company has seven days to notify the client in writing before the departure date.

Booking through the GDS vs Booking Through a Broker

The Global Distribution System (GDS) was initially a distribution channel for airline carriers. This channel expanded to include an inventory of car rentals and hotels. Airlines can log hundreds of flights in a single GDS system. It is a travel agent’s playbook for booking commercial flights, hotel rooms, and car rentals. A travel agent can log into the GDS and access airlines’ inventory and various airline fares. It comes on hand when booking flights for hundreds of clients.

Travel agents must charter a jet for clients through the broker or aircraft company. However, a broker is a more convenient choice because they can help you accommodate the specific needs of a customer. The broker company also has access to thousands of aircrafts. For example, they can help a client receive certain foods when on the flight. When working with an aircraft company, you will need to have some knowledge of the industry and know the right questions to ask.

Learn More About the Private Flight Industry

A small percentage of travel agents contribute to the sales of luxury jet charters. Some agents do not know how to set up this type of transaction for their clients. It is more complex than just asking for the price to charter a private flight. Travel agents must qualify customers by asking what services they need and their budget.

The cost usually depends on the distance and the type of aircraft. The Gulfstream G650 is one of the more expensive aircraft and can cost $100,00 or more. The Phenom 100 aircraft is one of the more affordable jets and can cost less than $5000 to charter. Travel agents should not expect to get rich from chartering one flight. They have to ensure clients enjoy their trip and return to book another flight.

Travel agents are more familiar with commercial flights. They can work directly with the airline company. On the other hand, agents have to work through a third party to book a private flight. They may not have enough experience to work directly with the aircraft company.

You have some travelers who still use travel agents to book all of their vacation plans. The more tech-savvy travelers use online travel websites to schedule a flight, book a room, and rent a vehicle. Many people are utilizing private jet services for the first time. Flying private is no longer just for celebrities but for anyone who needs fast, reliable, and safe service.

Many commercial airlines have staff shortages and can cancel flights without notice. Chartering a plane means minimizing the time it takes to reach your destination. It also allows you to maximize your time at your vacation spot or more time to prepare for a meeting.