With Air Travel Surging, Should Advisors Rethink Air Bookings?

While many advisors are encouraged to book lodging for all phases of a client’s trip, the air portion may not be receiving the same attention. As Signature Travel Network pushes travel sellers to ask clients, “Do you need a hotel with that?”—almost as a fast-food operator might ask about fries or a beverage with a burger—the question of booking an air ticket doesn’t come as easily for many travel advisors.

That’s because airlines stopped issuing automatic commission checks for such services 30 years ago, and the decades since have introduced a field of confusion and liabilities many advisors avoid. However, consortia such as Signature see potential profits left untapped and now encourage their members to get back in the game.

Air Travel Demand Soars

According to the U.S. Department of Transportation, 2024 has been a record-breaking year for air travel. The Airlines Reporting Corp. (ARC) noted that U.S. travel agency air ticket sales totaled $8.1 billion in October—a 12% increase from October 2023. Passenger trips reached 23.7 million, showing a 9% year-over-year increase. The average ticket price held steady at $557.

With this fervent travel activity expected to continue, why are travel advisors so reluctant to add these services to boost their bottom line? Given the many methods beyond direct commission for adding revenue, what obstacles remain? We asked Christine Alestra, vice president of destination and airline partnerships at Signature Travel Network, for her perspective. In a word, she says, it’s “trouble.”

“Air travel is a hassle,” Alestra says. “Some advisors don’t like touching air because clients often have frequent flyer miles and want to control their own bookings. But our advisors do want to take care of their clients’ whole travel process, especially for complicated trips. Still, there is risk, which is why some agencies hesitate to get back into air bookings, despite the benefits of offering comprehensive travel services.”

Risks of Booking Air Travel

Many travelers who booked directly with airlines during the pandemic were left stranded amid cancellations, refund difficulties, and communication breakdowns. Airlines are still inconsistent, playing loose with delays and cancellations. Travel advisors have been reluctant to get involved, wary of dealing with fraud, refunds, or last-minute issues.

Some airlines, like American Airlines, have pushed direct bookings by restricting inventory content and frequent flyer mileage accrual for agency bookings. Consumers have faced confusion over issues such as air schedule changes, missed cruises due to flight delays, and restrictive airfare policies.

How Air Fares Fit In

Despite these challenges, air travel is a key component, making up 11% of agency gross bookings, according to published reports—on par with cruises outside the U.S. and hotel bookings. Most air bookings are made through agent-facing platforms, suppliers, or GDS systems, with agencies compensated primarily through service fees. Industry surveys indicate that more than 15% of advisors receive no compensation for air bookings.

“What we learned during COVID is that people who didn’t book through an agency were left on their own, sitting on the phone for hours trying to get a refund or rebook,” Alestra says. “That’s why we’ve provided different ways to book air. We wanted to say, ‘If you want to book air for your clients, here are some reputable companies so you still have a way to get a resolution.’”

Signature’s Solutions

Signature offers members several channels for streamlined air ticketing. At the top is Air Desk, powered by Frosch Travel, which provides end-to-end air services for Signature members and handles the “hassles.”

The platform offers two modes: a GDS model for agencies fluent in GDS and an air desk model for those wanting full-service handling. In both models, Frosch shares any airline commission with the agency. The air desk model manages changes and fees associated with those tasks.

“This channel provides the most peace of mind to advisors and clients,” Alestra adds, noting that Frosch takes on late-night calls from stranded clients and manages refund or fraud issues. She cautions advisors to verify all information to protect themselves and their clients.

Consolidators and Private Jets

Signature also finds airline consolidators helpful, working with companies like Centrav, Mondee, and Picasso for their support in the research and booking process.

“Consolidators provide flexibility, allowing advisors to search for the best options, including private fares, published fares, tour fares, and cruise fares, based on the client’s preferences and budget,” Alestra says.

Surveys show 43% of advisors who book air receive commissions from consolidators, while 33% receive commissions from airlines, 15% rely on GDS segment fees, and 13% use overrides as a source of air revenue.

Since COVID, a new type of flyer has emerged—clients who choose private air travel. Some are solo flyers needing fast transport; others are groups finding it economical to rent an entire aircraft rather than upgraded seats on a commercial airline. Benefits include private airports, dedicated TSA, and personalized service, with high-dollar bookings often generating high commissions.

“Private jet charters have gained popularity among affluent clients seeking convenience and privacy,” Alestra says. “While not widespread, advisors catering to high-net-worth individuals can tap into this market by partnering with reputable private jet companies.”

Signature’s Air Desk offers private jet options through Delta’s partnership with Wheels Up. Other companies, such as JSX and Aero, also collaborate with advisors.

The Evolving Air Travel Landscape

Overall, the air travel landscape continues to evolve, Alestra says. “Travel advisors play a crucial role in navigating the complexities and ensuring a smooth experience for clients. By staying informed, collaborating with reputable partners, and providing personalized service, advisors can thrive in this changing environment. You don’t need to be an expert in GDS codes to sell airline seats or sell travel.”