Independent Contractor Travel Agent
AAA Club Alliance`s preferred cruise and travel partners offer higher commissions than other agencies. The payment of the commission is staggered and paid to you monthly. While all of our independent contractors start with a combined 60% percentage of commission income, you can earn up to 85% depending on your sales performance. There is an annual administration fee of $325. As an independent contractor, you should be just that. Independently. So, if there is a non-competition clause in your contract, it could be a cause for surprise. Clarity on commissions is a big problem. There are three main categories to consider when it comes to commissions when it comes to your contract with a travel agency with an independent contractor: (g) This section does not apply to a person who is an individual, a limited liability company with a single member whose sole member is a sole shareholder, or an S company with a single shareholder, whose sole shareholder is an individual shareholder who fulfills all of the following: (1) Has a written contract with a registered travel seller to act on behalf of that registered travel seller by offering or selling air or sea transportation and other transportation-related travel goods or services. (2) Acts solely on behalf of a registered travel seller with whom the person has a written contract for the offer or sale of air or sea transportation and other goods or services related to transportation to an air or sea passenger and does not sell other air or sea transportation services or travel to such passenger. (3) Provides air, sea or travel transportation services offered or sold in accordance with the official order of the registered seller`s agency of travel with which the person has a written contract.
(4) Does not receive any consideration from the passenger for air or sea transport or other travel services. 5. Requires the passenger to pay all consideration for air, sea or other travel services directly to the air or ocean carrier or registered travel vendor. 6. Discloses: (A) The person is acting on behalf of a registered travel seller. (B) the name, address, telephone number and registration number of the registered travel seller on whose behalf the person is acting. Not too shabby, right? Membership is $199 for independent agents who sell less than 1 million trips per year, and $345 for members who sell above this threshold. And if you want to explore more legal resources on the site, you can make a detour here.
If the Attorney General determines that an application for registration is correct and complete, the application will be processed and a registration certificate will be issued to the travel seller within 21 days. Reference: Article 17550.20 of the Business and Professions Code, subsection g) All host organizations have different requirements to join; However, most want you to register a company name and get an EIN or employee identification number. Different states also have different requirements for registering a travel agent, so be sure to check the laws for where you live. A career in travel is an exciting undertaking. What other industry helps you explore the world to make other people`s life dreams come true? And now it`s easier than ever to earn a good income as an independent travel agency, also known as an independent contractor or IC, while setting your own schedule and working from anywhere. David Holman finds the best ICs for his hospitality agency Bridge & Holman Worldwide Travel from consumer Facebook groups. “You can really see who has both the knowledge and the passion to sell travel. A little more research reveals their employment status and previous experience in sales/customer service. Then it`s easy to send them a message: “Hey, have you ever thought about becoming a travel agent? I run a host agency and can help you start your own business and get the training you need to succeed. Meanwhile, Walker notes that ICS is more likely to come to her than the other way around. “It`s not uncommon for an existing client or someone who follows my Facebook business page to contact me and find out what it takes to become a travel consultant. I think I make it fun by posting photos and texts from all my travels! The onboarding process requires the completion of the Associate Training Program, which provides a basic knowledge of the leisure travel industry and professional sales training that forms the basis of a lifelong professional development program.
Access to training and courses to grow as a travel agent and entrepreneur. A few years ago, travel lawyer Mark Pestronk wrote an article for Travel Weekly outlining 12 contractual issues to watch out for in independent travel agency contracts with hospitality agencies. This information still stands the test of time! While some travel agencies are employees of the travel agencies they work for, others are independent contractors. In fact, Travel Weekly reports that a 2017 study by the Travel Institute found that 62% of travel agencies are now independent contractors. The process of becoming a travel agent is usually simple: training is often provided in-house and you must follow the policies of your host agency. In short, error and omission insurance is a guideline for travel agents when a customer sues you for negligence. It doesn`t cover things like booking errors and direct debits (confusing given the name). Some travel agencies prefer to take the risk rather than take out E&O insurance. It is not mandatory, but it is important to take it into account. Starting a travel agency is like starting a business – there is a financial risk. Your independent travel agency contract with the host agency indicates that the CI assumes this risk. Friedman notes: “The agreement should describe the relationship between the parties and the risk of loss of the IC in the event that the commissions do not cover the costs incurred.” 1.
A contractor is subject to Borello if the principal demonstrates that all of the following factors are met: (A) The person must maintain a business location, which may include the place of residence of the person separate from the tenant. Nothing in this subdivision prevents a person from choosing to provide services at the location of the hiring business. (B) If the work is performed more than six months after the effective date of this Division, the person will have a business licence in addition to the professional licences or permits required for the person to practise his or her profession. (C) The person has the possibility to set or negotiate his own tariffs for the services provided. (D) Outside of the project completion dates and reasonable opening hours, the person has the opportunity to set their own times. (E) The person is usually engaged in the same type of work performed under a contract with another client, or is engaged in other potential clients available to perform the same type of work. (F) The Person shall habitually and regularly exercise his or her discretion and independent judgment in the provision of the Services. Compensation should be very clear in your contract.
How do you know if it`s clear enough? Lobasso`s advice is as follows: “Ask someone who knows nothing about how your business works to review the commission plan and then explain how it works and how much the entrepreneur would earn if they sold a certain amount. If the commission cannot be calculated solely on the basis of what appears on the printed page, this is a fairly good indication that the structure as it was designed is not clear enough and that the revisions are good. According to Lobasso, “Litigation in another state is inconvenient, time-consuming and costly, especially when multiple hearing dates are required. You`ll also likely need to hire an out-of-state attorney to represent you, which will create a serious deterrent effect for one party – but not the other – to assert their rights under the contract in court. For example, imagine that the host is in New York and the IC is in California and a dispute arises. It goes without saying that the party who has to travel across the country to pursue or defend a lawsuit will be overburdened by the litigation. Many, but not all, travel agencies work from a home office. Others may have an office in a travel agency or rent a separate office or workspace. While many travel agencies operate fairly normal business hours, some customers have to plan leisure trips outside of business hours, which means their travel agent may need to be available on an evening or weekend. In addition, customers sometimes face travel emergencies that require last-minute bookings or cancellations, which may require a travel agent to operate outside of business hours.
Jackie Friedman`s advice? “First and foremost, it is very important that the IC and the `host` to which they are linked have a mutually acceptable written agreement.