A travel agent earns in one of two basic ways: buy the product at a net rate and add your own margin, or sell it at the normal price and have an agreed share paid back to you later as agency commission. Both models have strengths and weaknesses, and which one is better depends on the sale, the customer and the agency’s cash position on that day. This article puts the two models side by side, explains when each one helps, and shows why the LONDONOS agent portal lets you choose on every single booking rather than once and for all.
For an overview of the portal itself, read our guide to a B2B travel booking platform or visit the travel agent portal page.
How net rates work
With net rates the agent buys the product with a discount agreed for their agency. What they pay is below the normal price, and they decide what to charge the customer. The difference stays with the agency at the moment of sale.
- Upside: you earn straight away, and because you pay a lower amount, less money leaves your card.
- Watch out for: you set the customer price yourself. That flexibility is valuable, but keeping your prices consistent is your job.
How agency commission works
With the agency commission model the agent pays the normal price, and the agreed percentage is paid back to the agency later as agency commission. The customer usually pays the same price the agent paid, which makes the price conversation simple.
- Upside: you quote the same normal price anyone can see; your earnings build up separately and arrive as a regular payment.
- Watch out for: you pay a higher amount at the time of sale, and you receive your earnings on a schedule rather than immediately.
The two models compared
- Cash flow: net rates pay you at the point of sale; agency commission arrives with the weekly payout.
- Quoting the customer: with agency commission you quote the normal price; with net rates you build your own price.
- Card limits: net rates take less from your card, which can matter in a busy season.
- Bookkeeping: agency commission is easy to track as a separate income line; with net rates your margin sits inside the selling price.
- Cancellations: agency commission on a cancelled booking is reversed; under net rates the refund is based on what you paid.
Why you should not be locked into one model
No two sales are the same. On a high-value family package, net rates may protect your card limit; on a short city-break hotel, quoting the normal price and collecting agency commission may be simpler. A platform that forces one model pushes every sale into the same mould.
On the LONDONOS agent portal the choice is made at the payment step of each booking. Right above the card form you see two options:
- Pay the discounted price: shows the normal price, your agency’s discount and the amount to pay.
- Pay the normal price: shows the amount to pay and the agency commission credited to your wallet.
Both options use the same rate. If your agency has a given hotel rate, the net model takes it off the price and the agency commission model credits it to your wallet. The only thing that changes between the two is when the money reaches you.
How the wallet works
When you choose agency commission, your earnings are first recorded in the wallet as pending. Once the payment is taken they become available. If the booking is cancelled or refunded before payout, the agency commission is reversed; if a refund happens after payout, it is deducted from your next payment. The wallet balance is paid weekly by bank transfer, and each currency is kept separately: earnings on sterling sales are tracked in sterling, earnings on lira sales in lira, with no conversion between them. Your panel shows the balance, pending amounts, history and payout statements, all exportable to Excel or CSV.
Do two discounts stack on packages?
No. On products with their own discount, such as holiday packages and Build Your Trip, only the larger of your agency rate and the package discount applies. Under the agency commission model, if the package discount is larger there is no agency commission on that booking; if your agency rate is larger, the agency commission is the difference between the two. The rule keeps prices consistent and avoids surprises when you reconcile.
Showing your margin to the customer
Whichever model you choose, the price you show your customer is your decision. Type your markup as a percentage into the top bar of the portal and prices on screen include it. The markup is display only and is never charged by the system. Click the eye icon to hide it and see your own cost. The voucher you hand over shows either your marked-up price or no price at all, never your cost.
A simple rule of thumb
- Choose net rates for high-value packages, when you want to protect your card limit, or when you prefer to build your own selling price.
- Choose agency commission when you quote the normal price as it is, or when you would rather collect earnings as a steady weekly payment.
- Mix freely: using net rates on one sale and agency commission on the next, on the same day, is entirely up to you.
A note on reconciliation
Whatever model you use, reconcile regularly. Export your bookings and wallet history from the panel at the end of each week, match payouts against the statement that comes with them, and keep sterling and lira separate as the wallet does. Agents who check weekly rarely face a confusing month-end.
Conclusion
There is no right or wrong answer in the net rates vs agency commission debate; what matters is being able to pick the right model for each sale. The LONDONOS agent portal leaves the choice to every booking, tracks your earnings by currency and pays them weekly. To set up an account that fits the way you sell, apply for an agent account.