travel markups

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Calculation and usage of mark-ups

Inside the Effective Tours, there is two models of prices:  Net Rates & Rack Rates

Depending of which rate is used, the Markups works in different way. Let’s start with the scenario, that you have a hotel with the Net rate

It is a very important part. This is needed to avoid confusion with rates, when the agents are connected to your account, you will manage markups for each agent individually. Selected mark ups automatically added on top of the rates in ET for Net rates, or deducted from Rack rates.

So let’s say your lowest rate/base rate/travel agent rate/NET rate (however you want to name it) for the room is  100$/night . As an example there are 3 agent’s connected to the property:

Agent A (big tour operator); Agent B (travel agency); Agent C (your friend’s agency)

This price of 100$, is the minimal price you can afford to sell the rooms. Later, when you start connecting your agents (we will discuss it after) you will provide them the markups rates accordingly.

For Agent A (Tour Operator) you want to provide with a best markup of  2.5% . For Agent B (Travel Agent) you want to provide with a competitive markup of  5% . For Agent C (Friend Agent) you want to give the best rate possible and put a markup of  0% . Each time, when you will update any of the rates for the rooms or supplements, your agents will automatically receive the prices according to markups assigned by you.

So it means for the example above: For Agent A (Tour Operator)  100$+2.5% = 102.50$.  Means you are selling to this agent for the price of  102.50$ For Agent B (Travel Agent)  100$+5% = 105$.  Means you are selling to this agent for the price of  105$ For Agent C (Friend Agent)  100$+0% = 100$ . Means you are selling to this agent for the price of  100$

IMPORTANT : In case if your hotel operating with  Rack Rates  then all of the Markups will be removed, from the price. So it you have a 100$ rack rate, an a markup of 5%, then the final price will be 100$-5% = 95$

Check the following diagram for better understanding the flow

Understanding margin and markups

Learn about adding markup, what's available, and how to determine your margin.

In business - and especially in travel - markup is a common method for making money. But how do margin and markup differ, what options are available, and how can you manage it with Duffel?

Markup is generally known as the amount a business adds to the cost of a product to make up the final selling price so they can make money.

Margin is generally known as the profit generated after accounting for costs.

Markup is shown as a percentage of costs while margin is shown as a percentage of revenue . These two terms usually get confused as they both have similar inputs: what the product sold for and the cost of the product.

Let's take an example to help clarify:

A flight sells for £100 and it costs the airline £70 - so the difference is £30.

• Markup would be calculated as £30/£70 = 42.9%
• Margin would be calculated as £30/£100 = 30%

Can I charge my customers a markup?

Yes, you can add a markup. You can choose to add a markup to flights and/or ancillaries such as seat selection and additional baggage.

It's a common pricing strategy to add a markup to cover your operating costs and make a profit.

You can learn more ways to make money selling flights by reading our blog post: How NDC helps travel sellers make money in 2022 .

How much can I mark up?

Adding a markup is completely in your control.

If you're using Duffel Payments , you can choose any amount as long as it covers the offer and services total amount, foreign exchange rate (if applicable), and Duffel Payments fee.

If you're using Duffel Balance, you have greater flexibility on the markup, as long as your balance has enough funds to cover the cost of the flight.

If the entire cost of the flight is greater than £5,000 you'll get a validation error. Read the Payment Intents documentation to learn more. To have this limit increased, please reach out to us.

You have the flexibility to choose markup based on your own pricing strategy. For example, you could add 3% on flights from Europe if that's your most popular region or 5% on ancillaries from easyJet if most of your passengers add extras to easyJet flights. You still pass the field amount to us that includes your own markup and covers the cost of the flight.

How do I add markup?

Can my customer see the markup? How do I add markup so the customer only sees one price?

If you're integrating Duffel into your own app or website, you have control over exactly what the customer sees, so you can choose to show them whatever price you want. That could be the price that Duffel is charging you, more, or less.

Remember, some customers are more price sensitive than others and will go directly to the airline's website or use a price comparison tool when researching flights. Also note, if the customer books their flight with you but goes to the airline website to confirm their flight details with their booking reference number, they will see the price excluding markup.

When you build your integration, you also need to build tools to control what markups are applied and when for example setting rules to determine when markup is applied or forecasting prices based on different scenarios to optimise your markup. We don't offer tools for this today.

Adding markup in the test order environment

Check out our Collecting Customer Card Payments guide that walks through collecting customer payments including adding a markup:

Once you're ready, you can move this over to the live environment.

Adding a markup in the Dashboard

Currently, we do not provide the ability for agents to markup fares in our Dashboard. You must integrate with the API to add markup.

How do I calculate the amount to charge my customer to account for Duffel Payment fees and currency conversion?

To calculate the amount you need to charge your customer to cover the price of an offer plus any markup, you can use this calculation:

Offer and services total amount : this is the total cost of the flight plus any extra services without Duffel fees. We always present the offer and service(s) total_amount in your settlement currency.

Markup: This is the amount on top of the flight cost that you might charge your customer to cover operational costs and any profits you want to make on the sale of the flight.

Foreign exchange rate: The foreign exchange rate would be the mid-market exchange for the day you charge your customer.

You should use an external source to get this rate (for example, https://fixer.io/ ).

If using Duffel Payments:

• Duffel applies a 2% interchange fee on transactions through Duffel Payments. You should include this in the amount you charge your customer.
• To determine the correct rate you should add a 2% markup on top of your foreign exchange rate in order to cover Duffel Payments FX fee ( fx rate x 1.02 ).
• We recommend that you add slightly more than 2% to account for the fact the FX you use might be slightly different from the one used by Duffel.

Duffel Payment fee: fee is determined based on the card country. It varies if the card is considered domestic or international, an example would be 2.9% or 0.029 .

When rounding is required you should round half away from zero .

Your balance currency is Euros (EUR), and your customer wants to pay for a flight in Great British Pounds (GBP), the foreign exchange rate between these two currencies is 0.85, they want to book a flight that costs €120.00 in total, you want to charge them €1.00 for your booking service, and the Duffel Payments fee is 2.9%. The amount would be calculated as follows ((€120.00 + €1.00) x 0.85) / (1 - 0.029) ~= £105.92 .

On average how much do travel sellers mark up flights?

Unfortunately, there isn't a one-size-fits-all when it comes to markup as it varies based on a multitude of factors. Here are a few examples:

• Domestic/international flights
• Time of year
• How far away the flight is from booking
• Competitors' prices

If you bundle other offerings such as accommodation, experiences, land transport, travel insurance, etc., you'll have more room to play around with the markup on flights as well as your other products.

Although we can't advise a specific percentage that works for everyone, you could expect on average a range between 2-6%. As you explore your integration further with Duffel, we'd be happy to have more conversations around markup.

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A Look at How Travel Agents Make Money

The average travel agent earns between $47,000 and $55,000 annually.

Most travel agents’ income is made up of their salary, but they also earn from commissions, service fees, and markups.

Generally, the more experienced and niche a travel agent is, the higher the commission and other fees they charge.

They are also multiple types of travel agents, with some specializing in leisure travel, others in business travel, and some offer niche travel services, like adventure or eco-tourism. 

Table of Contents

• 1.1 1. Leisure Travel Agents
• 1.2 2. Business Travel Agents
• 1.3 3. Niche Travel Agents
• 2 How Much Commission Travel Agents Make on Flights
• 3.1 1. Markups
• 3.2 2. Service fees
• 3.3 3. Package deals
• 3.4 4. Incentives
• 4.1 1. Commissions
• 4.2 2. Service Fees
• 4.3 3. Salaries
• 5 Travel Agent Commission Rates
• 6 Travel Agents Make Good Money
• 7 Travel Agents Don’t Expect Tips
• 8 Who Even Uses Travel Agents Anymore?

3 Different Types of Travel Agents

These are the three main types of travel agents. 

1. Leisure Travel Agents

Leisure travel agents specialize in vacation and leisure planning for both individuals and families.

They can book flight tickets and hotels and arrange tours and activities for travelers. 

2. Business Travel Agents

Business travel agents specialize in business travel for businesses and their employees.

Their services include booking flight tickets, hotel rooms and coordinating ground transportation. 

3. Niche Travel Agents

Niche travel agents specialize in niche types of traveling, like adventure travel or eco-tourism.

Each niche travel agent specializes in a specific niche, and use their niche travel knowledge to plan customized trips for niche travelers.

How Much Commission Travel Agents Make on Flights

Travel agents commonly receive commissions for selling travel products and services.

For flights, a travel agent can make 5% commission on domestic flights, and 10-20% for international flights.

For instance, a travel agent could sell an international roundtrip flight for $1,000. And if their commission rate is 15%, they’ll receive $150 for the sale. 

When it comes to cruises, travel agents can expect to make approximately 10-15% of the pre-tax price on a cruise.

4 Ways Travel Agents Make Money

Besides commission, travel agents make their money through the following four ways.

Travel agents sometimes add a markup to their travel products and services to earn extra income.

For instance, a travel agent could add a $10 markup to a hotel room that costs $90.

They’ll charge the traveler $100 total for the hotel room, with the $10 being their fee for finding and booking the room. 

The exact markup an agent charges depends on the products they’re selling and their arrangement with their supplier.

The most experienced travel agents naturally have the highest markup. 

2. Service fees

Travel agents also sometimes charge a flat or percentage service fee.

For example, they could charge you a flat $200 for arranging your trip, or they could charge 5% for the total cost of your trip. 

The service fees are charged for providing you with their services, including booking your flights and hotels, arranging for tours and transport, and filing your visa applications. 

The exact fee depends on the agent’s experience and reputation.

The most experienced and well-reputed travel agents charge the highest fees.

Inexperienced agents may not charge any service fees at all. 

3. Package deals

Travel agents often create and sell packages, which contain a group of products or services given at a discounted price.

These packages can be customized to specific travelers or designed to decrease costs for them. 

There are four main types of package deals. 

• Flight and hotel ticket packages: This package will have discounted flight and hotel tickets. 
• All-inclusive packages: This will include everything from flight and hotel tickets to meals and activities – all at a discounted price. 
• Tour packages: This package will include guided tours and activities in addition to flight and hotel tickets. 
• Cruise packages: This package includes a cruise vacation along with pre-cruise and post-cruise flight and hotel tickets. 

The agents earn from packages by adding markups, service fees, and commissions to their packages. 

4. Incentives

Travel companies often provide incentives and bonuses to agents for selling a specific number of services.

The incentives range from cash rewards to complimentary trips and other benefits.

Travel agents often earn additional income from these incentives. 

How Travel Agents Get Paid

Travel agents are paid via the following three ways.

1. Commissions

The travel agent receives a percentage of the sales they make for a product or service. 

2. Service Fees

Travel agents sometimes charge the traveler an upfront flat or percentage service fee directly. 

3. Salaries

Travel agents earn a base salary of $39,770 according to Salary.com

Travel Agent Commission Rates

Most host agencies provide between a 7% and 8% commission. 

These are the usual commission tiers for annual sales:

• $0 to $49,999: 10% 
• $50,000 to $249,999: 13% 
• $250,000 to $499,999: 14%
• $500,000 and higher: 15% 

These are the normal commission tiers in terms of passengers:

• 0 to 20 passengers: 10% 
• 21 to 49 passengers: 11% 
• 50 to 199 passengers: 13% 
• 200 and more: 15%

Travel Agents Make Good Money

Most travel agents earn between $47,000 and $55,000 annually, including their salary and other payments.

The exact income of a travel agent depends on their skills, experience, and relationship with suppliers. 

Experienced travel agents with a high number of sales and a good relationship with suppliers can earn substantially more than $55,000 per year, though. 

All travel agents receive their salary every month. But the rest of their payments depend on the specific business arrangement with their clients and suppliers.

Most agents receive commissions after a customer finishes their travels. Most also receive their service fees upfront.

Travel Agents Don’t Expect Tips

Travel agents sometimes receive tips from wealthy customers.

But it’s not particularly common for them to receive tips, nor do most travel agents depend on or expect tips as part of their job. 

Who Even Uses Travel Agents Anymore?

Many people still use travel agents today because they provide a personalized service, such as luxury travelers looking for a luxurious vacation that exactly matches their tastes and needs.

Travelers with complex trips that involve multiple destinations may hire travel agents to better manage their trips. 

In conclusion:

• Most travel agents earn between $47,000 and $55,000 annually.
• This figure includes a salary of around $45,000, with the rest of their income coming from commissions, service fees, and markups on goods and services.
• The exact income for a travel agent depends on their skills, experience, and relationship with their suppliers.
• An experienced travel agent with a large number of annual sales, a good relationship with their suppliers, and high commission rates can earn more than $55,000. 

Ella Dunham

Ella Dunham, a Freelance Travel Journalist and Marketing Manager, boasts an impressive career spanning eight years in the travel and tourism sectors.

Honored as one of "30 Under 30" by TTG Media (the world’s very first weekly travel trade newspaper), a "Tour Operator Travel Guru" and "Legend Award" winner, Ella is also a Fellow of the Institute of Travel, a Member of the Association of Women Travel Executives, has completed over 250 travel modules, and hosts travel-focused segments on national radio shows where she provides insights on travel regulations and destinations.

Ella has visited over 40 countries (with 10 more planned this year).

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How Smart Mark-up Strategies Can Help You Boost Profits!

Making profit from your business venture is a clever mix of smart decisions, availability of means and opportunities. As with any travel agent, you must have plans and aim to earn greater revenue.   

As a travel services seller, you are buying content from multiple suppliers and making it available to your agents and customers to choose from. Typically, every trip is searched across multiple websites before deciding on where to book from. This is true for agents as well as consumers.   

If your agents don’t find the pricing lucrative enough, you will observe that your look-to-book ratios are much higher. A smart mark-up policy helps you in keeping a tight control over your margins as well as extend smart pricing to your travel agents and customers.   

In this article, we explore the different opportunities available to you to add mark-ups on your services and how you can maintain a healthy margin and differential pricing for different types of content, destinations and agents.   

Benefits of Mark Up Pricing

• Manage profits: Once you set a rack rate you can add a markup to boost your profits. Your markup price is an additional amount added to your price that will help you gain more revenue from the transactions.    
• Competitive pricing: With a good markup strategy, it allows you to sell your inventory at a competitive price that allows you to maximize sales.    

Mark-up Strategies for Travel Agencies

Mark-ups are best used to secure greater business and boost profit. Mark-up strategies play a major role in the travel business. Build a strong inventory or content from your suppliers, directly contracted hotels, activities etc. You can add a markup on these through a markup profile.    

Pricing Strategies for Business

Mark up allows you to develop and implement pricing strategies that can benefit your business.

For Eg – During an event the number of people travelling increases. Let’s say the event is happening in New York. Now if you have contracted in New York and you want to ensure that these hotels need to have maximum no of sales. In this case, your pricing strategy for these particular hotels might be slightly different. You can extend extra discounts to the agents and also to the customers so these particular hotels have maximum sales. To ensure these sales go through you can reduce your markup resulting in a price that is enticing enough for the sales to push through.    

Pricing Strategy for Agents

Among the agents you work with some may have a better success rate than others. Some travel agents can do better at sales than others. You can have different types of pricing strategies for each of these agents. You can create a markup profile for your highest performing travel agent. Based on their volume of sales you can offer them extra discounts. In the case of the travel agent that is performing well, you can add a lower mark-up and add higher on a travel agent whose performance is average, to compensate for your cost.    

Pricing Strategy for Inventory

If you wish to sell a particular type of inventory you can add a markup or markdown to push the sales and maximize your revenue through the sales.

E.g. If you are aware that the flight ticket demands for India to Dubai are going to be higher, you can reduce your mark up and bring down the price to entice more customers and push the volume of sales.    

Mark up Strategy by Currency

If you deal with different currencies, you can add a mark up to the then the conversation rate that is available through your provider.

For E.g. You deal in Dollars, AED, pounds and riyals. If your customer wants to make payment in AED, the price that is displayed will have markup added to it.   

Mark up Strategy to Avoid Conflict

Mark up a profile by country helps you to avoid the conflict of pricing. You cannot add a markup for both country and city together. Since both the city and the country can bear different mark-up rates, this is done to avoid conflict and confusion between the two.    

Mark up for Branch

You can add a markup for any branch or agents that work with you. Any tickets that are booked by the branches that you have associated with, you can add a markup to any sales they make. You can also add a markup to the sales your agents have. This is based on the category of your agents.    

What OTRAMS Offers

OTRAMS allows you to calculate and add your markup profile, boost profit, avoid errors and save time.    

Mark-up Profiles

• Users can create multiple markup profiles/tiers with this option.
• You can use or assign these profiles to agents based on their potential/ business needs.    

Multiple Markups

OTRAMS allows you to add multiple markups such as Supplier Level, Country & City Level, and Branch Level.   

Flight Rule

• You can add mark-up or discount to flight ticketing with OTRAMS.
• You can also define management fees for Cancellation, Issuance or Re-issuance charges   

Multi-Currency System

• The currency matrix shows the list of currencies that are available in the system.
• This allows you to add a mark-up in the local currency of the traveler.   

Boosting your profit with technology is made easier with the right technology provider. With OTRAMS you can have both the ease of doing business and a chance to earn more. OTRAMS by Qtech Software is the world’s leading travel ERP platform that can help you harness the power of technology to grow your business.  

Get OTRAMS to Boost Your Profit with Smart Mark-Up Strategies!

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Build & manage a smart markup strategy

To offer our support and help you make the most of revenge travel we’ve prepared a guideline on how to boost your margins, with smart markup strategies using technology.

Smart markup management

Manage all your margins, control your markups and create your own rules for adding an extra layer of profit , all in just one place, in your system. Create smart markup strategies with automation, to easily sell your competitive inventory to your agents, resellers and travellers.

Markup per client or per group : Define multiple types of clients and determine a different markup per each category of client or group.

Markup per inventory type : The system grants you the possibility to add markups on both types of inventory sources: from own contrast or API Suppliers.

Markup per supplier : Find your top suppliers and define special markup categories for them.

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Markup per Destination : Choose a different markup to add to every destination separately or create markup categories for multiple destinations.

Markup per service type: Create a specific markup strategy for each type or service you are selling: air services or accommodation.

Markup for Flight : Decide if you add the markup as a percentage or as a flat fee per pax (or type of pax such as: adult, child, infant) or even both, at the same time.

Markup per Hotel: Separate accommodation properties and add a different level markup for each of them.

Markup per Hotel Room : You can add a larger markup for deluxe, supreme, or top-selling types of rooms.

Markup per occupancy : Determine a markup for a specific type of occupancy: double, triple and more.

Markup per exchange rate : When dealing with different currencies, add a markup per exchange rate to cover up the fluctuations of the market.

Define the rules as you want

In wbe.travel’s system you have the possibility to set your own rules for dynamic markup through which the system will apply, in an automatic way, the most efficient markup (percentage or flat, or per interval or even a mix of them) to a specific buying rate, based on complex criteria.

When setting up a markup as a percentage, add a limit to where that rate could go up , to stay competitive.

Define the percentage of markup for each price interval.

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The Easy Way to Calculate Markups on Billable Expenses

Kresimir Simicic

September 26, 2018

It’s easy to get lost and forget things when you’re handling a bunch of receipts for third party expenses.

This often causes problems for agencies, the worst ones being a loss of revenue and profit. If your projects come with a lot of out-of-pocket expenses, read this article. Examples of out-of-pocket expenses A typical example of a project packed with expenses would be event organization. Here are the most common tasks agencies need to take care of when organizing events for their clients: 1. Catering – Make sure attendees have something to eat 2. Music – Find a good a band to entertain everybody 3. Marketing – Print materials so people know who sponsored the event 4. Venue – Find a suitable place and get it decorated with balloons The list goes on… Examples of out-of-pocket expenses can be found on all types of projects, not only events. They can occur for software development agencies, marketing agencies and consultancies alike. Sometimes you may need to hire a lawyer or an accountant, pay for software licenses or get a freelancer to do the copywriting. Ultimately, all of these expenses can affect both the revenue and profit. This is because they can be either  billable or non-billable . So, what is the difference? Non-billable expenses In the case where all expenses are non-billable, things are quite simple. A budget was agreed to before the start of the project. Every expense that occurs during the project is covered with the money coming out of that budget. Naturally, this only generates cost, meaning that the revenue stays the same but the profit reduces with every added expense. Billable expenses Agencies often bill out-of-pocket expenses to clients. There are several cases, two of which are the most common: 1. Billing the actual cost – if an expense amounts to $100, the agency can ask their client to cover that cost 2. Adding a markup – if an expense amounts to $100 and the agency markup is 5%, the client will end up paying $105. In a nutshell, adding a markup, in this case, has generated 5% extra revenue for the agency. Expenses can accumulate quickly, and there should be a good mechanism in place that allows you to manage this.  Productive  handles out-of-pocket expenses with ease, allowing you to tackle both billable and non-billable ones in a couple of clicks.

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Managing out-of-pocket expenses in Productive

Whenever you add an expense to a Productive budget, you can mark it as either billable or non-billable. Non-billable

Will not be billed to the client

The revenue will stay the same

The expense will not show up in the invoice

​  Billable

Will be billed to the client

The revenue will also increase

The expense will show up on the invoice

Productive allows you to add your default markup when adding an expense – in this case, 5%. All you have to do is add this 5 % and  the billable amount is calculated automatically,  saving you the trouble.

Arming yourself with the right tools can make things way easier in the long run. Managing expenses can be extremely tedious and leaves a lot of room for error. The way we manage your expenses in  Productive  not only makes your work easier but also ensures you stop losing money where you shouldn’t.

VP of Business Development

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Marketing for Travel Agencies: Understanding and Surviving in the Online Travel Industry

• 16 min read
• Business ,   Travel
• 23 Dec, 2019
• No comments Share

Understanding the travel agency market

• Leading players holding the market. Booking Holdings with its 41 percent share and Expedia with about 32 percent are dominating the online travel agencies market. And their shares keep growing. So, for travel agencies, it’s difficult to stay afloat without a specific niche.
• Distrust. People tend to be skeptical and even suspicious in arranging their trips. They would rather follow word of mouth, go to their old, time-tested local travel agent, or stick to larger players, even if they are not totally satisfied. So, new travel agencies have to work hard to break through the wall of mistrust.
• Invisibility. Unless a travel provider puts a lot of effort and resources into promotion, it risks staying unnoticed. Here, the choice of distribution channel plays a decisive role.

This ad, published in National Geographic by Econo-Travel hotels, dates back to 1978

It will take days for a regular traveler to create such a complex itinerary, Eightydays cuts this to minutes

Investigate and define your market and target audience

Skift, Experiential Traveler Survey , 2019

Analyze your competitors

Establish your partnerships with service providers, define your pricing strategy, determine the right distribution and promotion channels, metasearch engine.

• You can manually check prices and manually change markups.
• You can use automated dashboards to track your performance and then manually change markups.
• The most advanced scenario is to create an automated commission engine that will keep all your markup rules and will be adjusting your margin on the go, reacting to competitor results.

Prestigia, a small OTA with about 200 thousand monthly visitors, wins on Kayak with this hotel deal as it targets boutique accommodation

Search engine

Orbitz has dedicated landing pages for hundreds of their deals and packs them with all useful information that a traveler may need: a booking widget, selected fares, basic information, and even short copy describing the trip

• Internal activities to meet technical standards of search engines. These usually include installing tools like Google Console and Google Analytics, working with meta tags, reviewing a website for the right page redirection, code errors, and others.
• External activities usually include working with keywords, texts in general, and acquiring backlinks from other websites.

Email marketing

One of the great examples of submitting discounts was Kimpton Hotels and Restaurants. The discounts promoted the unpopular post-Christmas holiday season

As you can see, there are both wallet-friendly and luxurious destinations and tour packages

Web adverts

Video blogging and other social media, final recommendations.

Calculating Fair Market Value (FMV) for RVs

• June 15, 2021

Table of Contents

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Whether buying a new or used RV, the exercise of determining the fair market value (FMV) is well worth the effort to avoid over-paying. Each transaction has a seller and a buyer with opposing financial goals—this article provides information to help the buyer minimize the cost while allowing a reasonable profit for the seller.

For the most accurate FMV, use as many of the techniques described in this article as possible. Allow variance in the FMV for condition, options, mileage, upgrades, number of available units, etc.

What Is Fair Market Value (FMV)?

According to Investopedia:

The fair market value is the price an asset would sell for on the open market when certain conditions are met. The conditions are: the parties involved are aware of all the facts, are acting in their own interest, are free of any pressure to buy or sell, and have ample time to make the decision.

In other words, fair market value is the happy, non-zero-sum intersection of where the seller has made a profit and the buyer has gotten a good deal.

Some of the product links are on this page are affiliate links. If you click through and purchase, I may receive a small commission at no extra cost to you. See  Privacy Policy.  Thanks!

Determining Fair Market Value for a NEW RV

What’s the Book Value?

Unfortunately, “book value” does not really exist for RVs!

Calculating how much your RV is worth is far more difficult than for a home or automobile.

• Home values are set by your local housing market supply and demand, comparable “comp” properties, and individual home appraisals (which are regulated by the FDIC). Selling prices are publicly available on real estate MLS listings.
• Automobile MRSPs and selling prices are carefully tracked by third parties, such as Kelly Blue Book and LMC Automotive. This information is publicly available and is based on incredible amounts of data! In fact, discriminatory pricing has largely been curtailed by the transparency and credibility of these tools.

No such transparency or extensive third-party data tracking is present in the American RV market.

Manufactures often do not disclose MSRPs on their websites. Actual selling prices are not as carefully tracked by giant third-party analysts, leading to incomplete data and sampling bias. It’s a bit of a Wild West out there!

Psst! There are websites out there offering “blue book” valuation services for your RV. Vet and research these services before using them! Make sure the service is a credible source and not a camouflaged phishing or lead generation operation.

What's a Fair Price for an RV?

Even though reliable “blue book” values don’t exist for the RV world, you can still get a reasonable estimate for your RV’s fair market value.

We list a few of the most popular and credible services below. 

None of these services factor in the construction quality of an RV. They are all strictly based on sales trends and forecasting algorithms. 

We recommend using the Low Retail Price (+ up to 10%, not exceeding the Average Retail Price) as a FMV for a new RV.

NADA Guides

The most popular (albeit not the most accurate) new RV book pricing tool is the NADA Guide. Many buyers turn to it first because it provides a quick answer.

You should consult the  NADA Guides , but don’t make it your only source. Its primary limitation for RV’s is that the prices are statistically derived and not from actual selling prices. If you will be relying heavily on the NADA Guides as a buyer, I suggest you use the “Low Retail” number in the online guide or the “Used Wholesale” number in the printed guide as your target price.

NADA allows you to search for Low Retail/Average Retail/Suggested List Price based on:

• Manufacturer
• Trim Options

You must provide your zip code to receive an online selling price estimate.

NADA Guide is free to use online. You can purchase the NADA Recreation Vehicle Appraisal Guide from J.D. Power, though.

RVT.com Price Checker

The RVT Price Checker allows you to search for High/Medium/Low/Suggested prices based on:

You can compare results from RVT to estimates from J.D. Power on the same page!

Their estimates are partially based on analysis of list and/or sale prices from the thousands of RVs being sold at RVT.com. 

RV Trader Price Checker

The RV Trader Price Checker allows you to search for Average/Low/High prices based on:

You can search nationwide or limit yourself to your local zip code!

Their estimates are partially based on analysis of list and/or sale prices from the thousands of RVs being sold at RVTrader.com

If you want to attempt to calculate your camper or motorhome’s Fair Market Value yourself, you’ll need to understand the following.

What Do Dealers Pay?

Fair market value for a new RV can be roughly derived by adding an acceptable margin of profit to the dealer’s invoice price (aka wholesale price).

You see, a dealer purchases the RV from the OEM at the invoice price and resells it to you, the customer, for an upcharge as the retailer and service provider.

The manufacturer often provides an Manufacturer’s Suggested Retail Price (MRSP). The dealer will typically sell at or below this amount at a discount.

Sometimes, you can find the MSRP of your RV by visiting our RV Manufacturers List, finding your manufacturer, and then clicking through to their site. 

But some OEMs simply do not post their MSRPs online.

And many RV manufacturers and dealers leverage MSRP values to create forced scarcity and false discounts. MRSP values are intentionally set higher than what the market will bear. Dealers can then sell the unit at “15% off – July only!” and still make their normal profit.

Typical dealer markup ranges from 20-40% of the invoice price.

Ballpark Estimate

To calculate a Fair Market Value estimate, follow these steps:

• Obtain an MSRP approximation from NADA, your dealer, or another trustworthy source.
• Multiply this number by 0.85.

Example: $36,544 MSRP x 0.85 = $31,062 FMV.

Do not pay more than this number!

Sadly, there is no hard-and-fast rule for calculating an exact markup margin.

For instance, some smaller trailers have 40% markups because the amount of time it takes the dealership to process the sale for a $15,000 13-ft mini travel trailer is the same as to process a $120,000 luxury fifth-wheel.

Margins vary with market conditions. With supply is low and demand is high, such as during the COVID-19 pandemic, markups are sky-high.

When the travel industry crashed after the Great Recession of 2009, markups took a nose-dive as well.

Unfortunately, unless you have insider knowledge of the RV industry, the invoice price will be difficult to attain.  But if you can get your hands on it, then you can use the invoice price as a bartering tool to reduce the markup to a reasonable percentage.

To my knowledge, there are no publicly accessible databases where you can see RV dealer invoice costs. And most dealerships will jealously guard this information.

P.S. Don’t be waylaid by so-called “search tools.” For instance, I reviewed the website SeeDealerCost.com, which purports to show actual RV dealer costs. I sampled 14 RVs from five different brands, in all cases, the ratio between the “invoice cost” and the MSRP was the same: 45%. I suspect this website is merely dividing MSRP numbers pulled from a different database, like NADA.

What Do Other Customers Pay?

You can estimate an RV’s fair market value by comparing similar models across regional dealerships.

By “similar” models, we mean the same brand, same/similar floorplan, same trim level, from the same manufacturer.

You may not be able to find an exact match. However, the brand and model size should be equivalent.

Many RV dealerships are now posting their inventory with standard pricing online. A quick Google search will show results within your area.

Direct comparisons between local dealerships may be more useful than the regional estimates provided by online estimators.

You can use this information to pitch dealer vs. dealer and drive down the cost through competition.

In fact, here’s a book on the subject from J.D. Gallant at the RV Consumer Group: How to Outwit Any Auto, Truck, or RV Dealer Every Time (included in M – RV Consumer Group

What’s the Actual Out-the-Door Cost?

Some RV dealerships tack on upsells, charges and fees at every opportunity: PDI inspections, service contracts, document preparation fees, or “mandatory” accessory packages.

(I’ve even heard of dealerships trying to sell hitch receiver pins to customers for a measly $2).

You need to know the out-the-door price, with all required fees and charges, from your dealership.

And if you plan to finance through your dealer, you need a full roster of your contract fees, interest rate, and other financial details as well. You don’t want to “save” $1,000 on the RV purchase price only to lose it all over in an unfair interest rate or early payoff fees!

Add Depreciation to Used RV FMV

Another way to determine the FMV for a new recreational vehicle is to find the FMV of a similar used model and add back the depreciation. If you do not have the RVCG’s depreciation schedule, then adding back 25% to a 1-2 year old model should get you in the ballpark. For example, let’s say you found a one-year-old model in excellent condition. By using the techniques described in the USED RV FMV section, you determine that the used model’s fair market value is $48,000. To estimate the new FMV, divide the used FMV by the inverse of the depreciation percentage, like this: $48,000 / 0.75 = $64,000.

Determining Fair Market Value for a USED RV

When finding out the Fair Market Value for a used RV, we recommend starting with a detailed understanding of that vehicle’s quality.

A great deal of research is performed by the non-profit 501(c) RV Consumer Group. You can see their full list of paid downloads for brand and model ratings here.

For 50 years, the RV Consumer Group has been a watchdog of the unregulated RV industry. Today, the RVCG publishes extensive documentation regarding RV safety, RV brand quality, RV recalls, and other RV industry information.

RVCG does not provide direct pricing information online. However, we recommend you compare their notes on brand quality to the NADA Guide estimates and purchase accordingly.

The RVCG has compiled price statistics for most RV brands and models in their member publications. This information is invaluable to shoppers of new and used RV’s alike and contains a Price Guide  section for each model with the following information:

• Average price paid for this brand/model as a percentage of the SLP.
• Average list price when new.
• Depreciation schedule.

You’ve heard it said that a fair price is the amount a buyer is willing to pay and a seller is willing accept. This is very true, but you also have to consider market conditions to bring the two sides together. These conditions are largely dictated by statistical data derived from completed sales.

Before we begin, however, you should understand that RVs undergo severe depreciation!

• Year 1: 20%
• Year 2: 25%
• Year 3: 30%
• Year 4: 35%
• Year 5: 40%

As you can see, RVs drop about 20% in value from new-to-used, and each year adds about 5% deprecation loss.

This tends to level off after Year 5. It takes 8-10 years for an RV to hit a full 50% loss in value, although this is somewhat for faster for most towables compared to motorhomes.

As a quick n’ dirty Fair Market Value estimate for a used RV, find the MSRP of that RV when it was new (from NADA), and then account for the depreciation.

Let’s look at a few techniques for determining FMV of a used recreational vehicle.

Again, the easiest source for an estimated Fair Market Value for a used RV is the NADA Guide from J.D. Power.

You should consult the  NADA Guides , but don’t make it your only source. Its primary limitation for RVs is that the prices are statistically derived and not from actual selling prices. If you will be relying heavily on the NADA Guides as a buyer, I suggest you use the “Low Retail” number in the online guide or the “Used Wholesale” number in the printed guide as your target price.

Actual Selling Prices

By far the best way to determine FMV is by observing the actual selling prices of similar units.

As discussed in the New RV FMV section, you can use the following resources to search for estimated market prices for new AND used RVs and campers:

• RVT Price Checker

The following sites don’t provide averaged sale prices, but you can manually compare similar models for sale:

• RVClassified.com
• RVOnline.com
• CampingWorld

PPL Motor Homes

PPL Motor Homes is a consigner in Houston, Texas. It is the largest RV consignment dealer in the country. Having purchased an RV from them in 2004, I can tell you firsthand that my buying experience with PPL has been pleasant. They are nice enough to post their own selling prices on the following pages:

• Class A Diesel Motor Homes
• Class A Gasoline Motor Homes
• Class B & C Motor Homes
• Fifth Wheels
• Travel Trailers

You can also visit their main Price Checker “blue book” and Price Comparison page here.

eBay Prices

Even if you have no interest in buying or selling on eBay, it is a valuable resource for determining selling prices. Examining final bid prices on RV’s similar to the one you are considering will give you a good idea of what those units are worth. Here is how you look up the final prices on completed listings:

• Go to the  RV category on the eBay Motors web site .
• Enter your search criteria, such as “monaco diesel”, and put a check mark in the “ Completed listings ” box under “Search Options” on the left side of the page.
• In the results ignore items that say “ Reserve Not Met ” and those with a  zero  in the “ Bid ” column—these items did not sell.
• Review the other items to find a model most similar to the one you are interested in and make a note of the final bid amount in the “ Price ” column.

Occasionally you will see asking prices far above the FMV for almost-new RV’s. When you see this, chances are the seller paid too much for the new unit and, naturally, wants to recoup as much of their investment as possible. Unfortunately, the chances of these folks getting anywhere near their asking price is slim.  The time to minimize resale losses was back when the new unit was purchased, by doing as much research as possible.

Local “Comps”

When in doubt, visit your local online marketplace and see what comparable RVs and campers are selling for.

Popular marketplaces include:

• Facebook Marketplace

Get a Quote

Why not just get a quote? You don’t need to own the RV to submit information! If you know the year, make, model, location and condition, you can get a quote.

Try out the Good Sam RV Valuator for a quick quote, which will forward your submission to your nearest Gander Mountain or Camping World store (so use at your own risk!)

Andy Herrick is a blogging nerd, #8 Enneagram, wannabe bread baker, INTJ, RV industry professional, and small business entrepreneur. He can be found hanging out with his lovely wife and family, skiing, cycling, climbing, hiking, and convincing anyone who will listen why dogs aren’t really that great of pets. Also, he runs this website.

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The Complete Guide to Travel APIs in 2024: Key Opportunities for Growth

Travel APIs have emerged as a critical technology for powering innovation across the hospitality and tourism sector. This comprehensive guide will explain what travel APIs are, their benefits, examine leading use cases amongst major brands, and provide best practices for adoption. By the end, you‘ll understand how to harness travel APIs as strategic tools to enhance customer experience and unlock new revenue streams.

Introduction: The Fast-Growing Travel API Market

A travel API (application programming interface) enables software developers to integrate directly with databases of travel data like hotel rooms, flights, rental cars and more. The API pipes this data into apps and websites in real-time.

For example, instead of a hotel website having static room rates listed, its integration with a hotel API allows displaying live rates and real-time availability obtained from the hotel‘s property management system.

The travel API market has witnessed massive growth as online booking platforms utilize these B2B connectors to streamline the lookup and reservation process. Annual travel API transactions are predicted to reach 3.6 billion by 2024 , up from 1.5 billion in 2019 according to Phocuswright.

APIs allow travel brands to quickly distribute inventory and services across channels. The result? Travel shoppers enjoy an always up-to-date view of the latest deals in one place, enabling easy comparison booking.

Let‘s examine the capabilities and applications of travel APIs across hotels, flights, rental cars and attractions. We‘ll spotlight leading examples along with tips to ensure successful API adoption.

Key Benefits of Travel APIs

Here are some of the ways travel suppliers and online booking platforms utilize APIs:

For travel suppliers:

• Distribute inventory across 100s of online travel agencies, metasearch sites etc.
• Enable direct bookings from search engines like Google
• Simplify integration with third-party distribution channels
• Receive real-time reservation updates across sales channels
• Analyze booking data, customer trends to optimize offers

For online travel agencies & metasearch engines:

• Provide real-time pricing and availability across travel products
• Enable customized bundling of flights+hotels+cars into packages
• Boost comparison shopping experience for travelers
• Rapidly add new suppliers via API integration
• Assemble complete trip itineraries spanning activities, tours, etc.

Research by Skift shows that travel shoppers now visit 38 websites on average before booking a trip. Travel APIs allow consolidating real-time data from numerous suppliers onto far fewer platforms, reducing search friction.

Top Travel API Use Cases

Let‘s dive into some leading applications across sectors:

1. Hotel APIs

Hotel APIs enable direct connectivity between hotel reservation systems and external sales/distribution channels via real-time data transfer. Common capabilities include:

• Look up live room rates, room types, amenity info
• Check real-time availability for upcoming stay dates
• Compare prices across room categories
• Complete new bookings and receive confirmation
• Retrieve reservation details for a booking ID

Google Hotel API

One of the most widely adopted hotel APIs globally is the Google Hotel API . It boasts the following features:

• Indexes 500k+ hotels in 200+ countries
• Updates rates/availability 3x daily for near-real-time accuracy
• Free version has basic functionality while paid tiers enable advanced features
• Offers flexible commission models for partners
• Powers hotel search across Google platforms like Google Travel, Google Flights and Google Maps

The Google Hotel API is used by many major online travel agencies and metasearch engines to integrate hotel search capabilities. Its extensive reach and direct tie-in with Google search makes it appealing.

Providers like booking portals can also become affiliate partners to earn commission when users book via the API. Independent hotels benefit by exposing their rooms to Google‘s vast customer base. But hotels must regularly update rates/availability for best results – a time cost.

2. Car Rental APIs

Rental car APIs allow programmatic access to live inventory across leading agencies for lookup and bookings. For users, this means:

• Review car availability across pickup locations
• Check rates across car types/categories
• Compare prices across rental providers
• Reserve the best match for travel dates

Providers like Trawex offer rental car APIs combining inventory from 50+ suppliers including Hertz, Avis and Europcar:

Trawex Car Rental API

The Trawex API enables partners to integrate rental car booking capabilities via:

• Real-time car availability checks for precise quotes
• Single API for major brands allowing easy consolidation
• Direct Reservations to issue confirmed bookings instantly
• Pricing Markups to set profit margin on rentals
• XML/JSON output for smooth integration

Partners can become an authorized reseller by subscribing to the API. Common use cases include travel marketplaces, price comparison sites, tour operators and travel management companies.

Rental suppliers benefit from expanded distribution reach while partners can differentiate by bundling rental cars into complete trip packages. Testing is crucial to ensure accurate quotes.

3. Flight APIs

Airline APIs empower partners to look up live flight schedules, availability, pricing and make bookings via real-time connectivity. Common capabilities:

• Browse scheduled flights by route, dates, number of passengers
• Check availability of seats on desired flights
• Review real-time fare details across cabins
• Reserve and purchase flight tickets directly
• Access additional data like aircraft details, baggage allowance, arrival times etc.

Leading GDS providers like Amadeus and Sabre offer flight APIs with global scope:

Amadeus Flight Offers API

The Amadeus Flight Offers API enables accessing bookable flights from 500+ airlines including full-service and low-cost carriers.

Its features include:

• Fares and availability reflecting live airline inventory
• Optimized shopping experience via single API call
• Retail and corporate booking use cases
• Caching options to limit calls and costs
• Available in test environment to refine integration

Partners can subscribe to the API for usage-based pricing. The API powers flight search and booking for many top OTAs.

This delivers mutually beneficial scale – airlines expand their virtual shelf space while booking sites offer comprehensive flight inventory in one place. Rigorous load testing is vital before launching globally.

4. Tour and Activity APIs

Travel brands can tap tour and activity APIs to showcase available attractions, tours and events across destinations. Common capabilities include:

• Browse things to do like museums, attractions, tours
• Check availability and reserve spaces in real-time
• Book rental cars, flights and hotels alongside activities for full trip planning

Providers like TrekkSoft and Ticketmaster supply leading activity APIs:

TrekkSoft API

The TrekkSoft API allows tour operators to distribute products across third-party sites. Its features include:

• Real-time availability checks and reservations
• Support for 50+ languages and 120+ currencies
• PCI compliant payments via the API
• Rate plans, discounts and promo codes -pickup locations, travel times, and more

This expands direct packaged bookings beyond a provider‘s website.

Ticketmaster Discovery API

With over 500 million tickets sold annually, Ticketmaster offers a range of APIs. The Discovery API enables:

• Event discovery by location, keyword, genre etc.
• 150k+ events across concerts, sports, arts and more
• Reviews, seating maps and other event details
• Inventory availability checks in real-time

Partners can integrate event discovery and ticketing into a cohesive trip booking workflow.

Activity APIs turn static destination content into bookable products that add value. Providers benefit from increased distribution and commissions.

Choosing the Right Travel API

Here are some key factors when evaluating travel APIs:

• Coverage: Number of hotels, flights, rental cars, events indexed
• Availability : How frequently is data refreshed for real-time accuracy?
• Capability : Can you complete bookings or only search availability?
• Cost : Per-call pricing? Monthly subscriptions? Account tiers?
• Output : Are output formats (JSON, XML) appropriate for your usage?
• Support : Documentation quality? Sample code? Technical assistance?

Leading GDS providers like Amadeus, Sabre and Travelport offer extensive air, car, hotel and rail APIs. But niche suppliers often have the best region-specific content.

Booking Holdings (owns Priceline, Kayak, Agoda) and Expedia Group (Expedia, Travelocity) also offer proprietary travel APIs. Evaluating your unique needs is key before selecting.

Best Practices for Travel API Success

Here are some top tips to ensure maximum value from travel API adoption:

• Start small : Limit initial scope to a single provider or geography before expanding
• Phase launches : Rollout new integrations incrementally to pinpoint issues
• Test extensively : Rigorously test APIs to catch bugs before they impact customers
• Monitor adoption : Analyze API usage metrics to refine product-market fit
• Promote capabilities : Educate users on new features enabled by your API platform
• Stay compliant : Ensure API usage follows terms of service and locality regulations
• Watch dependencies : If your platform relies on external APIs, have fallback plans in case of downtime
• Plan for scale : Stress test API loads on staging environments before launch
• Automate post-launch : Use API testing tools to monitor performance 24/7

With the right API strategy, travel brands can provide customers seamless, accurate experiences across booking journeys.

The API-Driven Future of Travel is Here

Travel APIs have revolutionized how brands build innovative digital experiences in hospitality and tourism. By tapping into continuously updated data from diverse travel suppliers, platforms can deliver always-on convenience:

• For customers : Comparison shop the latest deals in one place and book in minutes
• For suppliers : Distribute inventory widely to boost bookings across channels
• For travel marketplaces : Assemble complete trips spanning flights, hotels, cars, activities and more

From major online travel agencies down to individual hotels and tour providers, travel APIs enable businesses to focus on where they truly add value. And conceal the complexity behind sleek customer experiences.

While the capabilities are compelling, realizing the full benefits does require diligent API testing and monitoring. This ensures customers never see an outage or error caused by bad API implementations.

With a thoughtful API adoption strategy, travel brands can future-proof their platforms to meet rising digital demands. By harnessing the collective power of the wider travel ecosystem, companies can accelerate innovation and take customer service to new heights.

I am Paul Christiano, a fervent explorer at the intersection of artificial intelligence, machine learning, and their broader implications for society. Renowned as a leading figure in AI safety research, my passion lies in ensuring that the exponential powers of AI are harnessed for the greater good. Throughout my career, I've grappled with the challenges of aligning machine learning systems with human ethics and values. My work is driven by a belief that as AI becomes an even more integral part of our world, it's imperative to build systems that are transparent, trustworthy, and beneficial. I'm honored to be a part of the global effort to guide AI towards a future that prioritizes safety and the betterment of humanity.

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Travel Agent Commissions, Explained. [Infographic]

There’s no two ways about it, travel agent commissions are complicated—the numbers are not black and white numbers and there is no set way of doing things. Simply put, there is no "average" travel agent commission. Heck, if that were the case we'd be wrapping up this article by now!

We’re going to try to simplify things but since the system is complex, explaining it can be tough.

As you read this, just remember that commission levels vary by a travel agency's sales, an agency's consortium , franchise or host agency affiliation, vendor, destination, how the booking is made, and more (and that's just to name a few).

This article is a rough guide to travel agent commissions. It will give you a thorough, yet general, idea of travel agent commissions and what to expect.

If you're a sucker for details, don't worry. Once you join a host, franchise, or consortium, their commission guides will have all sorts of juicy details on specific commission levels!

Now, let's start breaking this stuff down, shall we?

⭐️ har's Travel agent commissions article highlights ⭐️

• Travel Agent Commissions, Big Picture : Curious about the average commission rate for different travel products? You can check out our infographic in this section!
• How Do Travel Agent Commissions Work? Commissions are typically tiered according to annual sales and/or passenger sales.
• Host Agencies and Travel Agent Commissions : A host agency can help travel agents receive higher commission levels due to economies of scale.
• Types of Travel Agent Commissions: There are 2 primary kinds of commissions for travel agents, flat commissions and tiered commissions.
• Airline Commissions: Airline commissions are a different beast altogether because their commission range depends on a variety of different factors! (Read this section to find out why.)
• Negotiated Contracts: Going with a host or consortia can help you leverage their commission contracts with suppliers.
• Commission Confidentiality: You might not know the exact commission rate you'll receive until you sign on with a host. This section is where we tell you why.

Travel Agent Commissions: The Big Picture

Let's start with a visual to give you the 40,000-foot view of travel agent commissions. You can see some hard numbers and how things are broken down in an easy-to-digest infographic.

After you've checked that out, we'll deep dive into how travel agent commissions work to make sure you know all the ins and outs!

How Do Travel Agent Commissions Work?

First things first: where do travel agent commissions come from? How do they get from supplier to host to travel agent? How does a supplier know who gets what?

At its simplest, a supplier/vendor recognizes a travel agent from any Joe Blow on the street because travel agencies have an accreditation number .

These magic accreditation numbers are how travel agents get commissions! When you call/login to make a booking, the supplier asks for your travel agency's accreditation number. This is how they know who to send the commissions to.

It's like when you call any doctor's office and they always ask for your name and date of birth to identify you. Travel suppliers ask for an agency's accreditation number to pull the agency up in their system.

Host Agencies and Travel Agent Commissions

In the case of a host agency, all of the travel agencies in the host's network use the same accreditation number (the host's). The supplier/vendor will recognize all of the host's independent contractors (ICs) as "one" large agency since all of their ICs are using the host's accreditation number.

Consortia and some franchises are a little different from hosted agencies in that each individual agency needs its own accreditation number.

If that's a little confusing, let's try to give a similar example in the real world . . .

I like to think of the host agency model being like the relationship between a general contractor and a homeowner. A homeowner paying a general contractor is like a supplier paying a host agency.

Instead of paying the electrician, plumber, and architect separately, homeowners pay the general contractor who in turn pays the individual companies (that's the hosted agents!).

So the supplier pays the host agency (general contractor) commission because they are what's called "the agency of record". In turn, the host agency pays the individual independent contractor (IC) travel agencies their share of the commission.

Using a host's accreditation is one of the major benefits of using a host agency . . . not only does it spare you the hassle of getting your own accreditation, but a host agency is able to negotiate better commission levels than an individual agent because of their higher sales.

The general rule in travel is, that the more your agency sells of a vendor, the higher the commissions (to a point).

This is a great segue into our next section! (PS: Did you know it's segue and not segway? I just found out and want to make sure you appreciate my newfound knowledge by pointing it out.)

Two Kinds of Travel Agent Commissions

1. flat commission rates.

A flat-rate travel agent commission is the simplest type of commission. The flat rate is just what it sounds like: every travel agent gets the same no matter how much they book, what consortium they belong to, or how cute their dog is. Flat-rate commissions are actually standard and predictable! Hooray!

Here are a few types of vendors with a flat rate commission:

→ Hotel-only bookings and car rental companies: These types of bookings typically pay travel agents 10% commission and that’s that. There are small variances but car and hotel-only bookings are probably the most predictable commission level in this whole mess.

→ Boutique tour operators: Smaller or boutique vendors will typically pay a 10% commission or give agents net rates. They won’t have sales tiers (more on that soon). If you’re sending a boutique hotel or small tour operator tons of business, there may be room to negotiate a higher commission.

→ Disney: Okay, so they're not exactly a boutique vendor! But Disneyland and Disney World have a flat rate commission of 10% for all agents. No matter how special you, your consortia, or host agency are, you're not going to be able to negotiate a better commission.

When it comes to Disney Cruise Line and Adventures by Disney products, their commissions are tiered (we'll talk about tiered commissions in-depth in just a sec) but the sale thresholds for those are the same for every. single. agency. out there.

2. Tiered COMMISSION RATES

It only seems fair that if you sell more of something, then you get a higher commission, right? Well, a lot of vendors think so too! Tiered commissions essentially mean that the more you sell, the higher the commission you get. Sounds simple?

I hate to burst your bubble, but tiered commissions are so complex so I'm going to put them in the spotlight after our intermission...

Rigel Break!

Ugh. My mind is wandering too. Let's take a break and look at a cute picture of my dog, Rigel.  This is his "business dog" look.

Sigh. Handsome lil' devil, isn't he? Sorry, that's all the cuteness for now; back to work!

Tiered Commission Rates. How Are They Determined?

So why would Travel Agent #1 receive a 12% commission for selling vendor X, while Travel Agent #2 receives a 16% commission for selling the same product?

There are two major factors that will determine travel agent commission tiers:

1. Aggregate/ Annual Sales Volume

For some vendors, the commission level (or tier) they pay an agency is determined by the sales volume under that agency's accreditation number. A vendor may increase commission based on annual sales of an agency (or their host agency).

Here's an example (numbers are hypothetical)

Annual Sales Commission Level:

• 10% . . . $0-$49,999
• 13% . . . $50,000-$249,999
• 14% . . . $250,000-$499,999
• 15% . . . $500,000+

From the numbers above, you can see that as a solo travel agent, it's a heckuva lot easier to reach 15% when you belong to a host agency!

So even though you may have a commission split with your host agency, in the end, many agents stand to rake in more dough with a host because they are earning more commission.

When you look at the big picture, it's also worth noting that nearly all host agencies also belong to a travel consortium (such as Travel Leaders Network, Signature, Virtuoso, or Ensemble). With a host agency's aggregate sales among ICs and their consortia relationships, host agencies are able to bring in higher commission tiers with vendors than most individual travel agencies.

2. Passenger Count

While many vendors use sales numbers to determine an agency's commission level, there are a handful of vendors that use a different marker. Instead of looking at the total sales coming from an agency, a vendor will look at how many passengers you're sending their way.

You’d see something like this (these are hypothetical numbers):

Annual PASSENGER Count Commission Level:

• 10%: 0-20 passengers
• 11%: 21-49 passengers
• 13%: 50-199 passengers
• 15%: 200+ passengers

A Note on Airline Commissions

I always say airlines are another animal and honestly, they're not my forte. So I’ll say this. Don't expect to become a millionaire by selling domestic tickets from JFK to LAX.

In August 2017, American Airlines announced they would pay travel agents a $2/segment for airline ticket commission — which is the first time airlines have offered all agents commission on all air tickets since the 1990s.

Kinda huge. But really, is it just me, or is the $2/segment airline commission incentive not really doing it for anyone else? Well, don't worry, because going through a host agency and/or travel consortium can give you access to private air contracts that are quite a bit more attractive.

Airlines offer travel agent commissions through two routes:

1. AIRline Consolidators:

These are airline wholesalers. They specialize in air and have private contracts with the airlines. Travel agents can make money with these airline consolidators in one of two ways: commission and marking up net rates.

2. Airline Contracts:  

Your host agency or consortium/franchise/co-op will most likely have private air contracts that allow for travel agent commissions on certain airlines. Not every domestic or international ticket is going to be commissionable, it depends on things like city pairs, class of service, the carrier, time of year, etc.

The commission percentage agencies earn on air depends on numerous factors, the most important one being which private contracts you have access to.

Here's a general rule of thumb on the airline ticket commission range you can expect as a travel advisor:

• Domestic: 0-5%
• International: 10-22%

For most leisure agents, airline ticketing alone is not a large source of commission. That's why the most common fee travel agencies charge is a service fee for airline tickets. It helps stabilize an agent's income and ensures they're being compensated for their work.( Looking for more data on travel agent fees? HAR's 75+ page travel agent research reports are just what you need. )

Travel agents can book air-only reservations in a variety of ways, most notably through consolidators (often used by leisure agents) and for corporate agents, through a Global Distribution System (GDS) .

Now, let's chat about how companies like host agencies, consortia, and franchises help secure better commission deals for their agency members...

Negotiated Contracts: Host Agencies, Consortia, and Travel Agent Commission Agreements

Alright, you've probably figured out that the travel industry is all about economies of scale. The more you bring to the table, the more leverage you have.

So it's no surprise that host agencies (a group of independent agencies using the same accreditation number) and consortia (independent agencies with their own accreditations that band together for more buying power and access to marketing/tech tools) are able to negotiate better commission tiers.

For you, as an agency, these negotiated commission tiers are a big benefit of aligning with a host agency or consortium. When you (or your host agency) are affiliated with a travel consortium, the consortium will negotiate lower sales tiers/passenger thresholds with their preferred suppliers .  

Let me break it down in real terms.

Most vendors will have commissions broken down into tiers. Maybe they say an agency has to sell $75,000 of their product to get a 12% commission. But, if a host/franchise/consortia has a negotiated commission agreement, their agents may only need to sell $50,000 to reach the same 12% commission tier. A deal!

Since many of the readers of this site align with host agencies at some point in their careers, we’ll mention again that for hosted agents, your tier is not dependent on your individual agency’s sales, but the cumulative sales of all of the agencies under the host’s umbrella .

The value in this becomes a little more clear if we compare two agencies: one is a hosted agency that belongs to a $100M host agency, the other is a smaller agency that has $2M in sales.

Both of our agencies belong to the same travel consortium. Both agencies have access to the same negotiated commission tiers because they're members of the same consortium. But, who is going to have a harder time meeting the $50,000 commission tier the consortium worked out?

You got it. The $2M agency because they have to rely on only their sales, whereas the agency who belongs to a host agency — regardless of how much of the vendor they actually sell — reaps the benefits of the sales of all of the other agencies in their host agency's network.

Host agencies and consortia will have the strongest travel agent commission agreements with their preferred suppliers. When a vendor is on a "preferred supplier list," it means that the host or consortium will have better contracts with them and likely sell a higher volume with that vendor.

Understanding Commission Confidentiality

As you can imagine, commission contracts between travel agencies and vendors, as well as those between consortia and vendors, are confidential. They’re like trade secrets that can give one travel agency/consortium an advantage over the other.

Knowing that, don’t be surprised if a consortium or host is tight-lipped when you ask for their commission guides. Sadly, they're not going to hand over a detailed pamphlet listing all their trade secrets. If you made it to this point, you can understand why :)

Or maybe they're tight-lipped because they're spies? I dunno. I say follow your gut on that one.

All that said, if you do sell a lot of a certain vendor(s), it’s perfectly acceptable to ask about commission info for your top vendors.

Even if a host/franchise/consortium doesn't spell out the commissions you'd get in detail, you can ask for:

• a list of the preferred suppliers and
• an idea of the sales volume with your favorite vendors

More Ways to Earn . . .

Believe it or not, there are multiple ways an agent can earn money beside travel agent commissions!

A few other common income streams agents included service fees, consultation or planning fees, markups from net rates, and selling insurance (which is technically still a commission, but worth a note!).

Here's a few more resources to check out:

Curious to Start Earning Commissions Like a Bona Fide Travel Advisor?

Looking for some resources on how to start your own travel agency?

We happen to have oodles of resources on our site. But I have to say, that at this stage in the game our 7 Day Setup Accelerator course takes the cake.

Because it cuts the noise for you and delivers the exact info you need to launch your agency, with the support of industry experts and the accountability to make things happen!

Editor's Note: This article was originally published in Oct. 2021. We occasionally update it with the latest data, indicated by the publish date listed on the article.

About the Author

Steph grew up in the travel industry, helping on and off with her mom's homebased travel agency. She has worked with thousands of agents in her role as a former host agency director before leaving in 2012 to start HAR. She's insatiably curious, loves her pups Fennec and Orion, and -- in case you haven't noticed -- is pretty quirky and free-spirited.

If you’re looking for Steph, she leaves a trace where ever she goes! You can find her on Facebook, Instagram, LinkedIn (her fav) and Pinterest as 'iamstephly'. 🙂 You can also catch her on her Substack, Bumblin' Around, where she writes on things outside the world of HAR.

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Travel APIs: A 101 guide for travel businesses 

Introduction, what is a travel api, travel apis: key types and how they function, conclusion.

At online marketplaces, travelers prefer to find all travel products on a single platform. A platform that fulfills all their travel needs, from airport transfers, flights, and hotels to homestays. So, it’s a requisite for travel businesses to bring all the travel products on their platform. The stakes are high because a basic human instinct of the human being to window shop, on average, leads them to at least  4 travel websites . That’s why having enough travel products on the forum is a must, and it’s a no-brainer investment. To offer these diverse travel products, travel businesses require data from multiple inventory sources. That’s when the role of Travel APIs comes into play. 

Over the last decade, travel API integrations have entirely transformed how travel businesses consume travel content from various suppliers and serve an integrated platform to their customers, where they can find all travel products at single shop. 

The API revolution has made online travel agencies open and comfortable sharing data with third parties. It’s also because APIs offer greater control over data, and the trade happens in a secure and legitimate environment. And obviously, the benefits are immense. 

Travel APIs, or Application Programming Interfaces, are like online tools that help travel websites and apps communicate with different travel providers, like airlines, hotels, and rental car companies.

Think of it this way: imagine a traveler is planning a trip and wants to book a flight, a hotel, and rent a car. Normally, they have to go to each company’s website, look for availability, compare prices, and make separate bookings for each product. But with travel APIs, the website or app can access information from multiple travel providers at once, making it easier for visitors to compare options and make a decision.

The travel API acts like a “middleman,” sending requests for information to the various travel providers and then collecting and organizing the data it gets back. This helps travel websites and apps provide users with up-to-date information, such as flight schedules, pricing, and availability, all in one place.

In simple terms, travel APIs make it possible for travel websites and apps to do all the hard work of finding and organizing travel information so that travelers can easily plan their trips.

As we briefly touched upon earlier, Travel APIs are software intermediaries that allow travel websites, apps, and systems to access functionalities and data from multiple travel providers (such as airlines, hotels, car rental companies, etc.). These APIs enable travel companies to integrate various travel services into their platforms, streamline their operations, and offer a seamless experience to their customers. 

The major travel APIs include:  

• Flight APIs  

The flight APIs provide access to flight information, such as schedules, prices, seat availability, and booking. Travel companies can use these APIs to build their own flight booking systems or display flight information on their websites. 

• Hotel APIs  

Hotel APIs provide access to hotel information, such as room availability, rates, and booking. Travel companies can use these APIs to build their own hotel booking systems or display hotel information on their websites. 

• Car rental APIs   

These APIs provide access to car rental information, such as availability, rates, and booking. Travel companies can use these APIs to build their own car rental systems or display car rental information on their websites. 

• Destination APIs:   

The Destinations APIs provide information about destinations, such as weather, local attractions, and events. Travel companies can use these APIs to build their own destination guides or provide destination information on their websites. 

• Payment APIs  

 These APIs provide access to payment systems, allowing travel companies to process payments for travel bookings made on their platforms. 

• Hotel and Room Mapping APIs  

These APIs remove duplicate and inconsistent hotel listings from travel portals and standardize hotel and room content for travel businesses to ensure their customers get unique and detailed hotel and room information.  

These APIs work by connecting travel companies to the systems of travel providers or wholesalers and allowing them to access and retrieve data. However, in this transmission of data between travel companies and wholesalers, a lot of inconsistencies also emerge, which lead to dissemination of duplicate and incorrect data, that’s when mapping APIs like Vervotech help in big way in keeping check on these regular inconsistencies in travel data. 

To sum up, when a customer makes a travel request on a travel company’s website or app, these APIs are used to retrieve the information and make the booking with the relevant travel provider. The APIs then communicate the booking details back to the travel company’s platform, completing the transaction. 

Recommended :  Travel APIs: Flight, fare, rental, and public transport and the top vendors

Travel APIs are a crucial component for travel businesses in the digital age. These APIs act as intermediaries between travel businesses and travel providers, allowing the former to access and retrieve information about flights, hotels, car rentals, destinations, payments, and more. By integrating travel APIs into their platforms, travel businesses can provide a seamless, one-stop-shop experience to their customers, streamlining their operations and increasing customer satisfaction. From flight APIs to hotel and room mapping APIs, travel APIs are the key to providing a comprehensive travel solution to customers, making travel easier and more accessible. 

About Vervotech:

Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With One of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: [email protected]

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CONFIDENTIALITY

In connection with this Agreement, “Confidential Information” means all data and information of a confidential nature of Company disclosed by Company to the Referral Partner under this Agreement, as well as information that Referral Partner knows or reasonably should know that the Company regards as confidential, including business practices, software, technical information, future product/services plans, programming/design techniques or plans, know-how, trade secrets, prospects, customers, end users suppliers, development plans or projects, and services. Confidential Information may be communicated orally, in writing, or in any other recorded or tangible form.

Confidentiality. Referral Partner shall maintain in confidence all Confidential Information disclosed to it by the Company. Referral Partner shall not use for any purpose outside the scope of this Agreement, or disclose to any third party such Confidential Information except as expressly authorized by this Agreement. To the extent that disclosure is authorized by this Agreement, the Referral Partner shall obtain prior agreement from its employees, contractors, agents, and consultants to whom disclosure is to be made to hold in confidence and not make use of such information for any purpose other than those permitted by this Agreement. Referral Partner shall use at least the same standard of care as it uses to protect its own most confidential information (and in no event less than reasonable care) to ensure that such employees, contractors, agents, and consultants do not disclose or make any unauthorized use of such Confidential Information. Referral Partner shall promptly notify the other upon discovery of any unauthorized use or disclosure of the Confidential Information. Notwithstanding any other provision in this Agreement to the contrary, the obligations set forth in this section 7 shall survive any termination or expiration of this Agreement for perpetuity.

Exceptions. The obligations of confidentiality contained in this section 7 shall not apply to the extent that it can be established by the Referral Partner by competent proof that such Confidential Information:

was already known to the Referral Partner, other than under an obligation of confidentiality, at the time of disclosure by the Company;

was generally available to the public or was otherwise part of the public domain at the time of its disclosure to the Referral Partner;

became generally available to the public or otherwise became part of the public domain after its disclosure, other than through any act or omission of the Referral Partner in breach of this Agreement; or

was disclosed to the receiving Party, other than under an obligation of confidentiality, by a third party who had no obligation not to disclose such information to others.

Authorized Disclosure. Notwithstanding any provision to the contrary, the Referral Partner may disclose Confidential Information (a) to the extent required by law or any governmental authority, or (b) on a “need to know” basis under an obligation of confidentiality to its legal counsel or accountants, provided, that such Referral Partner shall to the extent practicable (and except to the extent it would jeopardize the filing or prosecution of letters patent) use commercially reasonable efforts to assist the Company in securing confidential treatment of such information required to be disclosed. Prior to disclosing any Confidential Information under this section 7 Referral Partner shall take reasonable steps to give the Company sufficient notice of the disclosure request for the Company to contest the disclosure request.

Referral Partner shall indemnify, defend, and hold Company harmless from and against any and all liabilities, losses, damages, costs, fees, and expenses (including reasonable attorneys’ fees) resulting from or arising out of any Claims based on allegations that (a) Referral Partner breached any obligations including with limitation Confidential Information, representation or warranty contained herein, or has breached any applicable laws, rules and regulations, or (b) Referral Partner made a representation or warranty regarding Company or the Services that is inconsistent with the written high-level description of Services provided to Referral Partner by Company, or is otherwise unauthorized by Company.

Indemnification Procedure. An indemnifying party hereunder shall be liable for any costs and damages to third parties incurred by the other party which are attributable to any such Claims, provided that such other party (i) notifies the indemnifying party promptly in writing of the claim, (ii) gives the indemnifying party the sole authority to defend, compromise or settle the claim, with prior approval of the Company and (iii) provides all available information, assistance, and authority at the indemnifying party’s reasonable request and at the indemnifying party’s reasonable expense to enable the indemnifying party to defend, compromise, or settle such claim. Any indemnifying party hereunder shall diligently pursue any defense required to be rendered hereunder, shall keep the indemnified party informed of all significant developments in any action defended by the indemnified party, and shall not enter into any settlement affecting the indemnified party’s interests without the prior consent of the indemnified party.

LIMITATION OF LIABILITY

COMPANY SHALL NOT BE LIABLE TO REFERRAL PARTNER OR ANY THIRD PARTY FOR ANY INDIRECT DAMAGES INCLUDING TOWARDS COSTS OF PROCUREMENT OF SUBSTITUTE GOODS, LOST PROFITS OR ANY OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, HOWEVER CAUSED, AND WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCTS LIABILITY OR ANY OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE MAXIMUM AGGREGATE LIABILITY OF COMPANY FOR DIRECT DAMAGES FOR ANY REASON SHALL BE LIMITED TO AMOUNTS PAID BY COMPANY IN RESPECT OF THE QUALIFYING SALE . THESE LIMITATIONS WILL APPLY NOTWITHSTANDING THE FAILURE OF THE ESSENTIAL PURPOSE OF ANY REMEDY.

NON-SOLICITATION OF PERSONNEL

The Referral Partner shall not engage or hire as an employee or engage as independent contractor, Company’ s employees or independent contractors during the term of this Agreement and for a period of one (1) year following expiration or termination of this Agreement except as may be mutually agreed in writing.

TERM AND TERMINATION:

Term. The term of this Agreement shall be one (1) year from the Effective Date unless terminated earlier in accordance with the provisions of this Section. This Agreement shall renew automatically for additional one-year terms unless one Party provides the other written notice no later than thirty (30) days prior to the expiration of the then-current term of the Agreement of its intention to allow the Agreement to expire at the end of such term.

Termination for Breach. Either Party may terminate this Agreement for cause resulting from the material breach of this Agreement by the other Party by providing the breaching party written notice of such material breach and the intention to terminate for cause. The Party receiving such notice shall have thirty (30) days to cure such material breach. If at the end of such thirty (30) day period, the breach has not been cured to the reasonable satisfaction of the Party seeking to terminate the Agreement, the Agreement shall terminate.

Termination for Convenience. Either Party may terminate this Agreement for convenience upon ninety (90) days’ written notice.

Effect of Termination; Duties of the Parties Upon Termination. Upon any termination or expiration of this Agreement, Referral Partner shall (a) refrain thereafter from representing itself as a promoter or marketer of Company Products, or as a referral partner of Company, (b) immediately cease all use of any Company Marks, and (c) return to Company the Company materials and Confidential Information and all tangible items in Referral Partner’s possession or under its control containing Confidential Information of Company. Upon any termination or expiration of this Agreement, Company shall return to Referral Partner all tangible items in Company’s possession or under its control containing Referral Partner’s Confidential Information. Upon any termination or expiration of this Agreement, all licenses granted under this Agreement shall terminate.

Survival. Any clauses which by their very nature survive termination of the Agreement, will survive.

MISCELLANEOUS:

Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. As used in this Agreement, the singular shall include the plural and vice versa, and the terms “include” and “including” shall be deemed to be immediately followed by the phrase “without limitation.” The captions and headings in this Agreement are inserted for convenience and reference only and in no way define or limit the scope or content of this Agreement and shall not affect the interpretation of its provisions.

Governing Law and Dispute Resolution: This Agreement will be governed by and construed in accordance with the laws of the India, without reference to its conflict-of-laws principles. The Parties shall resolve any difference or dispute arises out of this Agreement by way of negotiations. If such negotiation process fails, then all disputes arising from or related to this Agreement shall be resolved before exclusive jurisdiction of courts in Pune, India.

NOTICES: All notices including hereunder shall be given in writing by hand delivery, courier service or email at the addresses set forth below:

If to Company

If to REFERRAL PARTNER

Attention: Sanjay Ghare

Email: [email protected]

Address: 3rd Floor, Amar Tech Centre, Sakore Nagar, Viman Nagar, Pune, Maharashtra 411014

Non-Waiver: A party's failure or delay in enforcing any provision of the Agreement will not be deemed a waiver of that party's rights with respect to that provision or any other provision of the Agreement. A party's waiver of any of its rights under the Agreement is not a waiver of any of its other rights with respect to a prior, contemporaneous or future occurrence, whether similar in nature or not.

Captions: The captions in the Agreement are not part of the Agreement, but are for the convenience of the parties. References to Sections are to sections of this Agreement.

Counterparts. Any documents signed in connection with the Agreement may be signed in multiple counterparts, which taken together will constitute one original.

Severability: In the event any term of the Agreement is held unenforceable by a court having jurisdiction, the remaining portion of the Agreement will remain in full force and effect, provided that the Agreement without the unenforceable provision(s) is consistent with the material economic incentives of the parties leading to the Agreement.

Relationship between the Parties. The relationship of Referral Partner and Company is that of independent contractors. Regardless of the use of the word "partner" in the title of this Agreement, neither Party is, nor shall be deemed to be, a partner, joint venturer, agent, or legal representative of the other Party for any purpose. Neither Party shall be entitled to enter into any contracts in the name of or on behalf of the other Party, and neither Party shall be entitled to pledge the credit of the other Party in any way or hold itself out as having authority to do so. No Party shall incur any debts or make any commitments for the other, except to the extent, if at all, explicitly provided herein.

Assignment. Referral Partner shall not assign or transfer this Agreement, in whole or in part, whether by operation of law or otherwise, or delegate any of its obligations hereunder, without the express written consent of Company. Subject to the foregoing, this Agreement shall be binding upon the successors and permitted assigns of the Parties. Any assignment in violation of the foregoing shall constitute a material breach of this Agreement and shall be null and void.

Force Majeure. Neither Party shall be liable for any failure or delay in fulfilling the terms of this Agreement due to fire, strike, war, civil unrest, terrorist action, government regulations, acts of nature or other causes which are unavoidable and beyond the reasonable control of the Party claiming force majeure.

Entire Agreement. The Agreement constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings, and agreements, whether oral or written, between the Parties respecting the subject matter thereof. Parties agree that, their engagement with each other is on non-exclusive basis and either Party is free to appoint any third party for performance of their respective obligations.

Electronic Record. This Agreement is an electronic record in the form of an electronic contract formed under Information Technology Act, 2000 and rules made thereunder and the amended provisions pertaining to electronic documents / records in various statutes as amended by the Information Technology Act, 2000. This Agreement does not require any physical, electronic or digital signature. This Agreement constitutes a legally binding document between the Subscriber and the Company.

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Referer's Information:

Referral information:, referral details:.

Pravin Mahadik

Chief Financial Officer

Pravin Bandu Mahadik is an ICMAI fellow and accomplished Cost and Management Accountant (CMA) with over a decade of experience in accounts and finance.

As a leader, Pravin has worked across various financial domains, including commercial operations, accounts and finance, auditing, taxation, MIS, transfer pricing, and export management.

He consistently introduces and implements systems to fortify financial control and improve Vervotech’s net organizational efficiency.

Marvel Puri

Chief Revenue Officer

As chief revenue officer (CRO), Marvel is responsible for every process at Vervotech that generates revenue. He has been instrumental in connecting different revenue-related functions, from sales, customer success, pricing, and revenue operations. His focus-driven approach to improving sales performance, and creating great product and pricing strategy, and delivering customer satisfaction has helped Vervotech to acquire 100 clients within a short stint of 2 years.    

With the experience of over 15+ years in sales and business development at SaaS-based organizations, Marvel has flourished throughout his career by creating and leading experienced and diverse teams. To Marvel, growth has not only been to hit quotas but is broad and holistic: open new paths to revenue and build the processes to get there.

Ganesh Pawade

Ganesh is a Problem Solver and a Thought Leader. Throughout his 13 yrs professional journey, he helped businesses to identify their platform areas, define solutions and architecture, and make a more technically-informed decision on their current and future business as well as the technology roadmap.

His passion for good code often results in him being engaged in animated discussions with his team of architects and engineers, pushing them to think beyond what is possible. His specialties include Solution Architecture, Full stack specialist, AWS, Azure and Google cloud.

Dharmendra Ladi

Dharmendra Ladi has been instrumental in positioning Vervotech as the “World’s Best Mapping Provider” and is focused on transforming how the industry presents accommodation data to its customers. With his 14+ years of experience in travel and innovative technologies, he is the principal architect behind designing Vervotech’s AI-driven products that are today helping its clients worldwide do business seamlessly.    

He leads new product development. Under his leadership, Vervotech has is credited with going from 0 to 100 customers within 2 years of business establishment. Dharmendra is also an inspiring thought leader, and regularly speaks at large scale events, webinars and has been interviewed by multiple media houses.

Sanjay Ghare

CEO & MD

Sanjay brings over 16+ years of entrepreneurial, general management, and senior executive experience with proven expertise in business development, corporate strategy, and product & program management. Sanjay, being an Industry veteran, and an influencer, leads and drives Vervotech’s vision of “Organizing World’s Accommodation Data.” Before he founded Vervotech, he was a VP of Tavisca Solutions, where he took the started SaaS division and grown with customers in  more than 15 countries.    

With his business acumen, Sanjay is on the trajectory of revolutionizing the accommodation data segment. He’s also a member of the Forbes Technology Council and often puts actionable growth strategies into perspective in his Forbes column.       

Anurag Mittal

Chief Marketing Officer

Anurag Mittal is a seasoned technology executive who has led multiple marketing teams at SaaS-based organizations. At Vervotech, Anurag is responsible for marketing and strategy formulation and setting up a growth-oriented marketing & prospecting team. Anurag comes with an experience working with Organizations like Deloitte and ACCELQ, where he led the marketing initiatives for their SaaS product lines and has worn many hats including devising marketing strategies for business growth, managing GTM with alliances and partners, conceptualizing and orchestrating marketing campaigns, end-to-end event management, and demand generation activities to deliver a qualified sales pipeline.    

He has been strategic face for the launch of Vervotech’s website and digital presence and have led several winning campaigns that has led to successful brand development and customer acquisition.    

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40 Facts About Elektrostal

Written by Lanette Mayes

Modified & Updated: 10 May 2024

Reviewed by Jessica Corbett

Elektrostal is a vibrant city located in the Moscow Oblast region of Russia. With a rich history, stunning architecture, and a thriving community, Elektrostal is a city that has much to offer. Whether you are a history buff, nature enthusiast, or simply curious about different cultures, Elektrostal is sure to captivate you.

This article will provide you with 40 fascinating facts about Elektrostal, giving you a better understanding of why this city is worth exploring. From its origins as an industrial hub to its modern-day charm, we will delve into the various aspects that make Elektrostal a unique and must-visit destination.

So, join us as we uncover the hidden treasures of Elektrostal and discover what makes this city a true gem in the heart of Russia.

Key Takeaways:

• Elektrostal, known as the “Motor City of Russia,” is a vibrant and growing city with a rich industrial history, offering diverse cultural experiences and a strong commitment to environmental sustainability.
• With its convenient location near Moscow, Elektrostal provides a picturesque landscape, vibrant nightlife, and a range of recreational activities, making it an ideal destination for residents and visitors alike.

Known as the “Motor City of Russia.”

Elektrostal, a city located in the Moscow Oblast region of Russia, earned the nickname “Motor City” due to its significant involvement in the automotive industry.

Home to the Elektrostal Metallurgical Plant.

Elektrostal is renowned for its metallurgical plant, which has been producing high-quality steel and alloys since its establishment in 1916.

Boasts a rich industrial heritage.

Elektrostal has a long history of industrial development, contributing to the growth and progress of the region.

Founded in 1916.

The city of Elektrostal was founded in 1916 as a result of the construction of the Elektrostal Metallurgical Plant.

Located approximately 50 kilometers east of Moscow.

Elektrostal is situated in close proximity to the Russian capital, making it easily accessible for both residents and visitors.

Known for its vibrant cultural scene.

Elektrostal is home to several cultural institutions, including museums, theaters, and art galleries that showcase the city’s rich artistic heritage.

A popular destination for nature lovers.

Surrounded by picturesque landscapes and forests, Elektrostal offers ample opportunities for outdoor activities such as hiking, camping, and birdwatching.

Hosts the annual Elektrostal City Day celebrations.

Every year, Elektrostal organizes festive events and activities to celebrate its founding, bringing together residents and visitors in a spirit of unity and joy.

Has a population of approximately 160,000 people.

Elektrostal is home to a diverse and vibrant community of around 160,000 residents, contributing to its dynamic atmosphere.

Boasts excellent education facilities.

The city is known for its well-established educational institutions, providing quality education to students of all ages.

A center for scientific research and innovation.

Elektrostal serves as an important hub for scientific research, particularly in the fields of metallurgy, materials science, and engineering.

Surrounded by picturesque lakes.

The city is blessed with numerous beautiful lakes, offering scenic views and recreational opportunities for locals and visitors alike.

Well-connected transportation system.

Elektrostal benefits from an efficient transportation network, including highways, railways, and public transportation options, ensuring convenient travel within and beyond the city.

Famous for its traditional Russian cuisine.

Food enthusiasts can indulge in authentic Russian dishes at numerous restaurants and cafes scattered throughout Elektrostal.

Home to notable architectural landmarks.

Elektrostal boasts impressive architecture, including the Church of the Transfiguration of the Lord and the Elektrostal Palace of Culture.

Offers a wide range of recreational facilities.

Residents and visitors can enjoy various recreational activities, such as sports complexes, swimming pools, and fitness centers, enhancing the overall quality of life.

Provides a high standard of healthcare.

Elektrostal is equipped with modern medical facilities, ensuring residents have access to quality healthcare services.

Home to the Elektrostal History Museum.

The Elektrostal History Museum showcases the city’s fascinating past through exhibitions and displays.

A hub for sports enthusiasts.

Elektrostal is passionate about sports, with numerous stadiums, arenas, and sports clubs offering opportunities for athletes and spectators.

Celebrates diverse cultural festivals.

Throughout the year, Elektrostal hosts a variety of cultural festivals, celebrating different ethnicities, traditions, and art forms.

Electric power played a significant role in its early development.

Elektrostal owes its name and initial growth to the establishment of electric power stations and the utilization of electricity in the industrial sector.

Boasts a thriving economy.

The city’s strong industrial base, coupled with its strategic location near Moscow, has contributed to Elektrostal’s prosperous economic status.

Houses the Elektrostal Drama Theater.

The Elektrostal Drama Theater is a cultural centerpiece, attracting theater enthusiasts from far and wide.

Popular destination for winter sports.

Elektrostal’s proximity to ski resorts and winter sport facilities makes it a favorite destination for skiing, snowboarding, and other winter activities.

Promotes environmental sustainability.

Elektrostal prioritizes environmental protection and sustainability, implementing initiatives to reduce pollution and preserve natural resources.

Home to renowned educational institutions.

Elektrostal is known for its prestigious schools and universities, offering a wide range of academic programs to students.

Committed to cultural preservation.

The city values its cultural heritage and takes active steps to preserve and promote traditional customs, crafts, and arts.

Hosts an annual International Film Festival.

The Elektrostal International Film Festival attracts filmmakers and cinema enthusiasts from around the world, showcasing a diverse range of films.

Encourages entrepreneurship and innovation.

Elektrostal supports aspiring entrepreneurs and fosters a culture of innovation, providing opportunities for startups and business development.

Offers a range of housing options.

Elektrostal provides diverse housing options, including apartments, houses, and residential complexes, catering to different lifestyles and budgets.

Home to notable sports teams.

Elektrostal is proud of its sports legacy, with several successful sports teams competing at regional and national levels.

Boasts a vibrant nightlife scene.

Residents and visitors can enjoy a lively nightlife in Elektrostal, with numerous bars, clubs, and entertainment venues.

Promotes cultural exchange and international relations.

Elektrostal actively engages in international partnerships, cultural exchanges, and diplomatic collaborations to foster global connections.

Surrounded by beautiful nature reserves.

Nearby nature reserves, such as the Barybino Forest and Luchinskoye Lake, offer opportunities for nature enthusiasts to explore and appreciate the region’s biodiversity.

Commemorates historical events.

The city pays tribute to significant historical events through memorials, monuments, and exhibitions, ensuring the preservation of collective memory.

Promotes sports and youth development.

Elektrostal invests in sports infrastructure and programs to encourage youth participation, health, and physical fitness.

Hosts annual cultural and artistic festivals.

Throughout the year, Elektrostal celebrates its cultural diversity through festivals dedicated to music, dance, art, and theater.

Provides a picturesque landscape for photography enthusiasts.

The city’s scenic beauty, architectural landmarks, and natural surroundings make it a paradise for photographers.

Connects to Moscow via a direct train line.

The convenient train connection between Elektrostal and Moscow makes commuting between the two cities effortless.

A city with a bright future.

Elektrostal continues to grow and develop, aiming to become a model city in terms of infrastructure, sustainability, and quality of life for its residents.

In conclusion, Elektrostal is a fascinating city with a rich history and a vibrant present. From its origins as a center of steel production to its modern-day status as a hub for education and industry, Elektrostal has plenty to offer both residents and visitors. With its beautiful parks, cultural attractions, and proximity to Moscow, there is no shortage of things to see and do in this dynamic city. Whether you’re interested in exploring its historical landmarks, enjoying outdoor activities, or immersing yourself in the local culture, Elektrostal has something for everyone. So, next time you find yourself in the Moscow region, don’t miss the opportunity to discover the hidden gems of Elektrostal.

Q: What is the population of Elektrostal?

A: As of the latest data, the population of Elektrostal is approximately XXXX.

Q: How far is Elektrostal from Moscow?

A: Elektrostal is located approximately XX kilometers away from Moscow.

Q: Are there any famous landmarks in Elektrostal?

A: Yes, Elektrostal is home to several notable landmarks, including XXXX and XXXX.

Q: What industries are prominent in Elektrostal?

A: Elektrostal is known for its steel production industry and is also a center for engineering and manufacturing.

Q: Are there any universities or educational institutions in Elektrostal?

A: Yes, Elektrostal is home to XXXX University and several other educational institutions.

Q: What are some popular outdoor activities in Elektrostal?

A: Elektrostal offers several outdoor activities, such as hiking, cycling, and picnicking in its beautiful parks.

Q: Is Elektrostal well-connected in terms of transportation?

A: Yes, Elektrostal has good transportation links, including trains and buses, making it easily accessible from nearby cities.

Q: Are there any annual events or festivals in Elektrostal?

A: Yes, Elektrostal hosts various events and festivals throughout the year, including XXXX and XXXX.

Elektrostal's fascinating history, vibrant culture, and promising future make it a city worth exploring. For more captivating facts about cities around the world, discover the unique characteristics that define each city . Uncover the hidden gems of Moscow Oblast through our in-depth look at Kolomna. Lastly, dive into the rich industrial heritage of Teesside, a thriving industrial center with its own story to tell.

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