TravelAge West
Search Sponsored by

Explore TravelAge West

Destinations

Back
  • Africa & Middle East
  • Asia & South Pacific
  • Caribbean
  • Central & South America
  • Europe
  • Hawaii
  • Mexico
  • USA & Canada

Travel Types

Back
  • Family
  • Adventure
  • Cruise
  • River Cruise
  • Tour Operators
  • Luxury
  • Hotels
  • Culinary
  • Romance
  • Wellness
  • Sustainability

Directories

Back
  • Hotels
  • Cruise
  • Job Seeker Center

Interactive

Back
  • Click & Win
  • Geo Quiz
  • Slideshows & Video

Professional Development

Back

Industry Insight

  • Business Features
  • Interviews
  • Events
  • Opinion
  • Tech
  • Podcasts
  • Coronavirus and Travel
  • Need to Know Research

Education

  • Certifications
  • Digital Guides
  • Fams
  • Thought Leadership
  • Advertiser Spotlight
  • Webinars
  • Immersive Family Experiences

Events

  • Global Travel Marketplace
  • GTM West
  • WAVE Awards
  • Future Leaders in Travel Retreat

Get Us in Your Inbox

I accept the T&C and Privacy Policy.

Search TravelAge West

Clear Field
Emma Headshot_2022
Emma WeissmannManaging Editor

Share

  1. Home
  2. Industry Insight
  3. Opinion

Avoya Pushes for Quick Commission Payouts for Travel Advisors

Oct 16, 2020
Avoya Pushes for Quick Commission Payouts for Travel Advisors
Avoya’s proposing a solution to tighten the time between booking travel and commission payouts.
Credit: 2020 utah778/stock.adobe.com

What
Avoya Travel’s new Instant Commission 2.0 initiative aims to rally the travel industry around a new type of commission structure — one that gives travel advisors a portion of their supplier payout when a booking is made (called “booking commission”), followed by the rest of the payment at the time of travel (called “departure commission). Avoya is currently in talks with various supplier partners about implementing this two-part distribution system, either through their own means or by using Avoya’s existing technology (called “Instant Commission,” developed about 10 years ago). Under this proposed method, suppliers cannot recall the booking commission, even if a client cancels the trip.

Why It Matters
The COVID-19 pandemic has severely impacted travel agency cashflow, and the industry’s traditional payment model has some agents waiting up to 18 months (or longer) to be compensated for the trips they are selling today. Under current economic conditions, this method is no longer sustainable. Avoya rightly believes that travel advisors should be viewed as an asset to be invested in — and key to travel’s overall economic recovery. Early supplier adopters of this distribution model will be seen as top-notch partners and invaluable contributors to the recovery of the industry as whole.

RELATED: Advisors Should Receive Commission Within 14 Days of Final Payment

Fast Facts
- Under Avoya’s previous Instant Commission system (developed about a decade ago), an advisor would receive a percentage of their commission in advance, which was paid by Avoya. When the remainder of the commission was paid out in full by the supplier, Avoya retrieved its initial advance before forwarding the rest to the agent.

Get Us in Your Inbox

I accept the T&C and Privacy Policy.

- Under this second iteration of Instant Commission (Instant Commission 2.0), the initial “booking commission” (which is paid on the service rendered for initial deposit), cannot be recalled by the supplier. On the other hand, departure commission (paid based on final payment, or departure date) may be recalled.

- Avoya estimates that this solution will cost only $6,000 per $1 million (0.6%) in sales, with its return on investment having greater potential than many other sales, revenue management and marketing tools.

- If a supplier's teams do not have the funds to implement this distribution model themselves, they can partner with Avoya, which already has the technological capabilities to put the system into place. If they choose to the latter option, the system could be rolled out as early as November. 

- Although some suppliers may not choose to partner with Avoya, the organization says it hopes this will be a “rallying cry” for the entire industry to demand earlier payment.

What They Are Saying
“In order for the recovery to really happen here in the way that is best for the industry, you have to bring everybody closer to where they were from a cashflow perspective,” said Jeff Anderson, co-president of Avoya Travel. “And we believe that these new terms would deliver that. If we can’t figure out a different way of adjusting the commission structure, the investment the suppliers have made over many decades into the travel distribution system will be lost.”

“The finance department of suppliers convinced us it was OK to wait 12 months to get paid on work that we were doing today, but COVID-19 has created a new [challenge], and we have to move on from it,” he added. “Every supplier is under a lot of difficulty, but deposits shouldn’t just fill their own bank accounts … it needs to fill the seller’s, as well.”

The Details
Avoya Travel
www.avoyatravel.com

Tell Us What You Think! forum

Related Content

A New Jobs Website Targets the Travel Industry

A New Jobs Website Targets the Travel Industry

  • Most Read
  • Most Shared
  1. When Will the Brightline to Orlando Open? New Details Released
  2. The Top Hotels in Mexico for a Romantic Getaway
  3. A Travel Agent's Guide to Pet-Friendly Travel Planning
  4. What to Know About Waikiki Beach Marriott's Renovation, According to Its New General Manager
  5. What to Know About Riding on the Alaska Railroad
  1. 6 Unforgettable Chateau Experiences in the Loire Valley
  2. The Caribbean’s Newest Theme Park: Katmandu Park Punta Cana
  3. The Top Hotels in Mexico for a Romantic Getaway
  4. When Will the Brightline to Orlando Open? New Details Released
  5. What Is It Like to Travel to Saudi Arabia?

From Our Partners

More Stories Like This

Editorial: Tourism Is a Chance for Change in Saudi Arabia

Editorial: Tourism Is a Chance for Change in Saudi Arabia

A Look at Internova Travel Group’s New Sustainability Programs

A Look at Internova Travel Group’s New Sustainability Programs

timesavingtipsgeraldineree

Community Voices: 5 Time-Saving Tips for Travel Advisors

7 Predictions for the Cruise Industry in 2023

7 Predictions for the Cruise Industry in 2023

This City in California Is the First Autism-Friendly Destination in the U.S.

This City in California Is the First Autism-Friendly Destination in the U.S.

Editorial: Family Travel Is Rising, Offering Ample Opportunities for Advisors

Editorial: Family Travel Is Rising, Offering Ample Opportunities for Advisors

Editorial: The Travel Recovery Is on for 2023

Editorial: The Travel Recovery Is on for 2023

How The Travel Corporation Plans to Cut Emissions by 2050

How The Travel Corporation Plans to Cut Emissions by 2050

USTOA Survey Shows Strong Tour Operator Outlook for 2023

USTOA Survey Shows Strong Tour Operator Outlook for 2023

Wheel the World Is Offering an Accessible Cruise Itinerary

Wheel the World Is Offering an Accessible Cruise Itinerary

TravelAge West

About TravelAge West

  • About Us
  • Contributors
  • Sales Team
  • Contact Us
  • My Profile

Advertise

  • Advertise With Us
  • Write For US
  • Media Kit
  • Upload Ad Material
  • Digital Ad Specifications
  • Reprints
  • Subscribe to Print

Stay Connected to TravelAge West

Get Us in Your Inbox

I accept the T&C and Privacy Policy.


Northstar Travel Group

Northstar Travel Group

  • Travel Weekly
  • Travel Weekly Asia
  • Travel Weekly China
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec
  • Meetings & Incentives
  • Travel Technology
  • Corporate Travel
  • Hotel Investment
  • Data Products
  • AGENTatHOME

Copyright © 2023 Northstar Travel Media, LLC. All Rights Reserved. 301 Route 17 N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000

Load Carousel Here
Load Video Here