Group Travel for Travel Agents: A Complete Guide
Introduction
If you're the person who organizes group trips for family, friends, or coworkers, you might wonder if you could get paid for this skill. Group travel can be an excellent way to earn side income or build a full-time travel agent business.
Presenter: Jill, travel advisor and entrepreneur with experience on both sides—booking/managing groups as an advisor and working on group sales teams for hotels and resorts.
Types of Group Travel
Common Group Categories:
- Family reunions
- Destination weddings
- Corporate meetings
- Group cruises
- Retreats
- Smaller VIP groups
- Yoga and meditation groups
- Girls trips
- Friends trips
- Anniversary trips
- Self-organized groups (your own groups)
- And many more
Why Group Travel Is Great for Your Business
1. One Itinerary for Multiple Clients
Efficiency Benefits:
- Research, pricing, and itinerary design done once
- Could result in 20 clients on the same itinerary
- Significantly less work than 20 individual trips to different destinations
- All guests follow the same basic framework
Flexibility:
- Some guests may arrive early or stay late
- Core itinerary remains consistent for the group
Simplified Terms:
- One set of terms and conditions for all guests
- Single deposit amount per person
- One final payment deadline
- One cancellation policy
- Not 20 different sets of terms for 20 different bookings
2. Profitability and Predictable Revenue
Group Contracts:
- Work directly with hotels on formal group contracts
- Specific number of rooms secured and committed to by client
- Clear agreement for the specific event
Revenue Predictability:
- Expectation of revenue from the start
- Commission based on committed room numbers in contract
- Revenue may change slightly during planning but remains mostly predictable
- Makes financial planning easier for your business
3. Repeat Business Opportunities
Annual/Regular Events:
- Great for events that take place regularly
- Reliable, predictable business you can count on
Non-Repeating Events:
- Weddings may lead to anniversary trips
- Opportunity to meet multiple new potential clients
- Group participants can become individual clients later
Income Potential: How Much Can You Make?
Commission Structure
Standard Commission:
- Typically 10% commission on room revenue (unless negotiated differently)
Example Calculation:
- Group Size: 20 rooms for 3 nights = 60 room nights
- Nightly Rate: $500
- Gross Revenue: $500 × 60 = $30,000
- Hotel Commission (10%): $3,000
- Your Portion: Calculated based on your split with host agency
Planning Fees
Upfront Payment:
- Charge a planning fee at the beginning
- Separate from commission
What Planning Fees Cover:
- Time to research properties
- Creating proposals
- Helping client select property
- Negotiating group contract
- Managing all group details until travel date
Benefits:
- Get paid upfront for work done before the group travels
- Compensates for time investment throughout planning process
Group Travel Workflow: Step-by-Step Process
Step 1: Discovery Call
Gather comprehensive information about the group, just as you would for individual or family trips.
Essential Questions:
Group Basics:
- What type of group is it?
- What dates are they considering?
- How many people will attend?
- How many rooms are needed?
Planning Details:
- What is the agenda/purpose?
- Have they organized a group like this before?
- What are they looking for from you (scope of services)?
Payment Information:
- Who will pay for the rooms?
- How will payment be handled?
- One credit card on master account?
- Individual payments per person?
Purpose of Discovery Call:
- Start putting together the group framework
- Get a clear picture of the event
- Understand the scope of work required
- Determine appropriate planning fee
Step 2: Determine Budget and Experience Level
Budget Considerations:
- Luxury five-star experience with private transportation and VIP excursions?
- Four-star experience?
- Mid-range options?
Why Budget Matters:
- Directs your research to appropriate partners
- Helps you contact the right travel suppliers
- Ensures proposals match client expectations and financial parameters
Step 3: Research and Create Proposals
- Contact appropriate travel partners and suppliers based on budget
- Put together epic proposals that match client needs
- Present options that align with their vision
Step 4: Finalize Details and Execute
Once you and your client have solidified all details, you're ready to move forward with booking and managing the group.