Commission Examples: Online bookings
Commissions are calculated on the 'base rate' for all travel products. The ‘base rate’ is the total cost of a travel product; Minus taxes, service fees, fuel surcharges, port charges or other miscellaneous fees. Taxes, service fees, fuel surcharges, port charges or other miscellaneous fees are non-commissionable.
Standard gross commissions on most travel products is 10% of the 'base rate' as defined above..
HOTEL EXAMPLE: The base rate of a hotel booked is $100 per night and the tax rate is 10% causing an effective rate of $110 per night. If a passenger is staying 7 nights at the hotel the total charge for the hotel stay would be $770. The base amount of the hotel is $700 and the taxes are $70. The standard commission of 10% would be earned on the $700 base rate creating a gross commission of $70. The Affiliate would earn 50% of the $70 commission resulting in a $35 commission payment to the Affiliate.
CRUISE EXAMPLE: The base rate of a cruise booked is $1,400 per person for a 7 night Alaska cruise, taxes are $180 and port charges are $90 causing an effective rate of $1,670 per person. Two persons traveling together in the same cabin would cost a total of $3,340. The base amount of the cruise for two persons is $2,800 and the taxes plus port charges are $540. The standard commission of 10% would be earned on the base rate creating a commission of $280. The Affiliate would earn 50% of the $280 commission resulting in a $140 commission payment to the Affiliate.
AIRLINE TICKET EXAMPLE: Airlines no longer pay commissions on ticket sales. International Vacations, inc provides this service to its Affiliates and clients but no commissions are earned.
NOTE - Telephone Bookings: International Vacations, Inc will accommodate telephone bookings and will pay the Affilate at the rate of 25% of the base rate of the travel commissions paid from the suppliers.
All travel arrangements are provided by International Vacations, Inc.
Sellers of Travel registration CST 2076446-40 FLA ST36342 NV240000006.
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