Travel agents still send a lot of business to Indian hotels, especially for weddings, group tours and repeat leisure guests. But the commission arrangements confuse many owners, and confusion costs money. Here is how travel agent commission works, in plain terms.
What TAC actually is
Travel agent commission, often shortened to TAC, is simply the fee you pay an agent for bringing you a booking. It is usually a percentage of the room revenue, agreed up front. The agent either deducts it before passing on payment, or you pay it after the guest has stayed. In return, the agent channels guests your way.
Typical rates
There is no statutory rate, it is negotiable. As a rough guide, domestic agents commonly work around 10 percent, while international agents, tour operators and high-volume partners may command more. The number depends on the relationship, the volume they bring, and the season. A partner who fills your rooms in a lean month has earned a better rate than one sending the odd booking in peak season.
Net rate vs commissionable rate
This is where hotels lose track. A commissionable rate is your normal selling rate; the agent deducts their commission from it. A net rate is a lower rate you hand the agent, who marks it up and sells to the guest at whatever they choose. Net rates keep your true selling price hidden, which can protect rate parity, but you lose visibility of what the guest actually paid. Know which model each agent is on.
Track every channel's true cost
Sukoon tags each booking by source, agent, OTA or direct, so you can see what every channel really costs you and shift the mix toward the profitable ones.
See how Sukoon helpsTAC vs OTA commission
People lump them together, but they differ. OTAs like MakeMyTrip and Booking.com charge commission through a platform and usually take a bigger cut. A traditional travel agent is a human relationship, often cheaper, and can bring loyal, higher-value guests. Both are worth having; just know the true cost of each. For the OTA side, see how to reduce OTA commissions, and the broader question of OTA vs direct booking.
Manage the mix, do not fear it
Commission is not the enemy; unmanaged commission is. Agents and OTAs bring reach you could not buy. The goal is balance: use them for volume while growing your commission-free direct bookings so you keep more of every rupee over time.
FAQs
What is travel agent commission for hotels?
Travel agent commission (TAC) is the fee a hotel pays a travel agent for bringing a booking. It is usually a percentage of the room revenue, agreed in advance, and either deducted by the agent or paid by the hotel after the stay. It rewards agents for sending you business.
What is the typical travel agent commission rate in India?
Commissions commonly fall in the region of 10 percent for domestic agents, and can be higher for international agents, tour operators, or high-volume partners. Rates are negotiable and vary with the relationship, the volume, and the season. There is no fixed statutory rate.
What is the difference between net rate and commissionable rate?
A commissionable rate is your selling rate from which the agent deducts their commission. A net rate is the lower rate you give the agent, who then adds their own margin on top and sells to the guest. Net rates hide your real selling price from the guest; commissionable rates do not.
Is travel agent commission the same as OTA commission?
They are similar in spirit but not the same. OTAs like MakeMyTrip charge commission through an online platform and typically take a larger cut. Traditional travel agents are a direct relationship, often at a lower rate, and can bring loyal, higher-value guests.