Cost-plus payments for travel agents
3 April 2012
Q: I am new to the travel industry. Our travel agent operates on a cost-plus system and monies, commissions and discounts are passed to the company, less an agreed travel management fee. Could you explain what a cost-plus system is, and its pros and cons
A: Louise Innes, supplier management consultant at Standard Life and chair of the Institute of Travel Management, writes: A cost-plus system, or management fee, is simply the direct cost associated with your travel account plus a separate disclosed profit amount - in other words, the cost of processing your travel plus all extras. These may include staffing,...