Managing Your Travel Business: Tips for Tracking Commissions
by John Hawks

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On the other hand, cash is king for any home-based entrepreneur. And, every commission dollar you lose track or (or that you decide not to pursue) is money out of your pocket.

Remember these basic tips for tracking and collecting your hard-earned commissions:

1. Keep excellent records tracking your commissions.

Bad habits die hard -- and, if you don't have a system in place now to record and follow up on commissions every time you close a sale or pay a final deposit, you must make this step your # 1 priority in November.

While some agents use legal pads or index cards or a calendar to track commissions, you should automate this process by using an established "back office" system like ClientEase or similar programs. Whatever system you use, you must be able to record (at the time you take the booking) these details: (a) the date of the booking, (b) the date of the required final payment, (c) the client's travel date, (d) the dollar amount of your expected commissions, and (e) the date on which you expect to receive the commission, whether it's immediate or after the booking date or on the travel date or after the travel date.

Also, your system should give you the ability to print reports by booking date, by final payment date, by travel date, and (especially!) by the expected commission payment date.

2. Once every two weeks (or, at least, once a month), run an "expected commission payment date" report -- and follow up immediately on missing commissions.

Don't let more than a few days pass beyond the date when you should have received a commission check, but it's not in your mailbox yet. When you notice a missing commission payment, don't simply call the supplier. Prepare a standard "commission notice" fax sheet or email that you can update each time with details about your missing money, including the facts that it's overdue and that you expect immediate payment. Then, fax or email the notice to your supplier contact.

The Golden Rule of collecting travel commissions is simple: Be polite, but be firm -- and do it in writing!

3. Don't let suppliers slide past 30 days without aggressive follow-up on your part.

No matter how "preferred" a supplier may be, delayed commission payments could be a warning sign that the company is not in good financial shape. You owe it to yourself (and your fellow agents) to demand prompt commission payments. If the company still lags behind, consider switching suppliers or notifying the delinquent supplier that you must deduct your commission in advance before remitting final payment for a client's trip. (Be careful in some cases, though, as the supplier involved may not consider your "net" payment to be payment in full -- putting your client's reservation in jeopardy.) Like everything else in the travel business, you have to make your own judgment calls about how aggressive you can be with your preferred suppliers.

4. Check into electronic commission payments.

You may prefer having commissions deposited directly into your checking account, and some travel segments like hotels work with companies such as Pegasus and Perot Systems that offer such services. One warning: Always check the fees involved -- including fees charged by the supplier (or companies like Pegasus) for electronic payments, as well as fees charged by your bank for multiple electronic deposits in any given month.