Forms of payments between corporations and travel agencies
Written by – Tsvia Dahan, CEO, ComBTAS

In the travel market there are several forms of contractual agreement with travel agencies:

1. Rebate – A percentage of the turnover goes back to the customer, in the form of money or credits for future trips.  Credits are given at the end of the year, quarter, month, or on a per-trip basis, in accordance with the contractual agreement.
   
   
2. Management fee – In-house accounting format in which all of the expenses involved in station operation and all of the income (airline commissions and super-commissions) are passed on to the customer.  The customer pays the agent a percentage of the travel turnover.  The advantage of this kind of contractual agreement is that the customer is the one who determines the level of service that he wants to receive from the agent.
   
   
3. Handling fee – The customer pays the agent a fixed fee (= commission) on each ticket issued to him by the agent.  This is suitable for airlines with a net fare system. 
   
   
4. Transaction fee – The customer pays the agent for each transaction that is performed on his behalf.  This kind of contractual arrangement is feasible only when the travel agent has the technological means to "count" the transactions executed by the customer via the agent.  Suitable for customers taking simple trips with few changes.
   
   
5. Credit card – New accounting method, in addition to those described above.  The customer pays for each trip component via a company credit card when the trip is booked.  Advantages:  time saved on post-trip processing, shortened procedures, etc.