Override Commission is a special type of bonus payment in the travel industry. It's an extra commission that suppliers (like airlines, hotels, or cruise lines) pay to travel agencies on top of their regular commission. This reward is usually given when agencies meet or exceed certain sales targets. Think of it like a volume discount in reverse - the more travel products an agency sells, the higher percentage they might earn. Travel professionals often mention this term when discussing revenue streams and agency partnerships.
Negotiated Override Commission agreements with major airlines resulting in 15% revenue increase
Managed Override Commissions and Commission Override programs with multiple hotel chains
Achieved top-tier Override Commission status through strategic supplier partnerships
Typical job title: "Travel Agency Managers"
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Q: How would you develop a strategy to maximize override commission earnings for an agency?
Expected Answer: A senior manager should discuss analyzing current supplier relationships, setting sales targets, training staff on preferred suppliers, and implementing tracking systems to monitor progress toward override goals. They should also mention negotiation strategies with suppliers.
Q: How do you evaluate which supplier override programs are most beneficial for your agency?
Expected Answer: Should explain comparing different programs' requirements, analyzing past sales data, considering client preferences, and calculating potential return on investment. Should mention balancing higher commissions with customer satisfaction.
Q: How do you track and report override commissions?
Expected Answer: Should describe systems for monitoring sales volumes, maintaining supplier relationships, and ensuring accurate commission payments. Should mention documentation and reporting procedures.
Q: What factors affect override commission rates?
Expected Answer: Should discuss sales volume, supplier relationships, market conditions, seasonal variations, and competitive landscape. Should demonstrate understanding of how these factors influence commission structures.
Q: What is an override commission and how does it differ from standard commission?
Expected Answer: Should explain that override commission is additional compensation beyond standard commission rates, typically earned by meeting certain sales targets or preferred supplier agreements.
Q: How do you identify which bookings qualify for override commissions?
Expected Answer: Should demonstrate basic understanding of supplier agreements, booking codes, and how to verify eligible transactions for override commission.