Budgeting vs. Upselling: How Travel Advisors Strike a Balance

Commission on vacations is how travel advisors make a living. The more expensive the trips they sell, the higher their income will be. 

This is partially why so many of today’s advisors sell luxury travel or try to upsell. But people of all income brackets need a vacation – even if it’s not at The Ritz – and can use travel advisors’ services to ensure that it’s well-planned. 

Are travel advisors still willing to help their clients save money and budget their vacation spend? What’s the dynamic between making good commission vs. protecting their clients’ wallets? Are the two mutually exclusive, and if not, how can advisors achieve both? 

Travel Market Report broke down these questions with four travel advisors to learn how budgeting impacts their jobs. 

Making Travel Financially Accessible

While luxury travel is booming, there will always be a large population who want to travel but doesn’t have the means or desire to spend top dollar on it. Do travel advisors exist for them? 

They sure do. Take a travel advisor like Taylor Witte, owner of Balanced Life Travel in South Dakota, who sells trips with an average budget of $1,000 to $1,500 per person for under a week.  

“I would just prefer to help as many people see the world as they can,” Witte told Travel Market Report. “We need to be giving more people availability to experience other cultures, even across state lines.” 

Witte also offers financial tips to people who want to travel – but don’t think they make enough money to do so – to save up and budget for their vacation. 

“That was how I grew up. I did not think travel was a possibility unless you were in corporate life or came from a very well-off family,” she said. “I’m here to make it so you tell me where you want to go, what you have available to spend, and I can figure something out to try to make it work the best I can.” 

With that same goal of saving their client’s money in mind, some advisors told TMR that they will recommend different credit cards or loyalty programs to help their clients save on current and future travel. 

Having Realistic Budget Talks

When asked about their budget, there are some clients “who say, ‘I have $500, and I want to go on a cruise.’ That will get you to the port,” Witte said. 

This is where advisors need to lay the foundation for what is and is not possible. Once that’s taken care of, advisors should listen carefully to their clients. There are ways to gauge whether a person is firm on their budget or open to spending more – without crossing a boundary or flagrantly trying to upsell.  

“If they say something about a deal or a special or something that seems to include the fact that they’re watching for money reasons, then I know we might need to stick firm within a hundred dollars of however their budget is set,” Witte said, noting that clients who just want to fly and flop for a weekend may want the bare bones beach vacation and not want to be upsold.  

On the flip side, if a client is particularly excited about a bucket-list destination, “where they won’t be able to do this again,” she said, “they tend to be open to throwing extra in.” 

Morgan James, owner of Go with Mo Travel Co., said that “the budget conversation is one of the first discussions I have with every client.” 

“Their budget serves as the foundation for how I craft their itinerary. Through these initial conversations, I get a good sense of how firm or flexible their budget may be. If they explicitly state a strict cap, I adhere to it,” she added. “If they seem open to suggestions and indicate some flexibility, I might highlight opportunities for upgrades, but always with their preferences and financial comfort in mind. It’s about transparent communication, not assumption.” 

Evaluating Trip Value

Because money is so tied to value, Christy Slavik, owner of Mom Approved Travel, takes “a value-first approach” to the budget conversation. 

“I start by asking them what is valuable to them and after I know what is important to them, I ask them to litmus what they think a trip like this might cost,” Slavik said. “Asking for a budget generally isn’t effective as some folks have no idea what a trip costs as they are still in a research phase in the sales process.” 

As an advisor, upselling is ideally only to the benefit of the traveler – recommending a tour they’d be interested or perk they’d really love – not solely for the sake of the commission. 

“I strongly believe in ethical selling and finding the best value for the client,” Slavik said, adding that if some parts of a trip are not commissionable, she and her advisors will still sell them but make up for the difference by charging planning fees. 

Faith Czarnecki, a travel advisor at Travelista Travels in New York, on the other hand, does not charge a trip-planning fee, though she does place a high priority on the value of a trip as opposed to the price tag. 

“I always ask not only about budget, but what they want out of their trip. I always will offer experiences and upgrades to a trip, but if they are firm on a budget I never pressure,” she said. “My hope as a travel advisor is to not just get a booking but to have someone enjoy traveling the world.” 

Building a Trusted Client Base — Regardless of Price

Balancing a client’s budget and trip value is ultimately the key to building the best, most memorable trips – and building a trusted client base. 

“If I can provide value, build trust, and create unforgettable travel experiences, the client relationship often leads to referrals and repeat business, which is far more rewarding long-term,” James said. 

“I achieve my balance by prioritizing getting a sale over risking losing that sale by trying to maximize the commission,” Czarnecki added. “I value referrals from happy clients and returning travelers over a one and done commission.” 

Another important piece to that is consciously attracting the right clients that an advisor works well with. 

“It is important to market and attract our ideal client, not the general population,” Slavik said. “Being intentional about marketing to and attracting your ideal client is crucial to avoid frustration and burnout in this industry.”