New commission model from TUI! Here are the details...
TUI has presented its commission model for the next financial year earlier than usual. Travel agents may have feared the negative changes, but the new structure is likely to come as a surprise. The market leader is not only lowering the sales threshold to earn a ten percent commission. From November 1, cancellation revenue for bookings that move will now also be included in the total revenue.
Accordingly, travel agencies will in future receive a 10 percent commission starting from a total turnover of €80,000. Previously, almost twice that amount, €150,000, was required.
The entire model has been significantly simplified: instead of the previous 21 levels, there will now be only 12:
- 7.5 percent on sales up to 80,000 euros
- 10 percent from 80,000 euros
- 10.2 percent from 200,000 euros
- 10.4 percent from 300,000 euros
- 10.6 percent from 400,000 euros
- 10.9 percent from 500,000 euros
- 11.2 percent from 600,000 euros
- 11.5 percent from 750,000 euros
- 11.75 percent from 850,000 euros
- 12 percent from 1 million euros
- 12.25 percent from 1.25 million euros
- 12.5 percent from 1.5 million euros
Franchise partners can achieve a maximum of 16 percent through an omnichannel component and product line sharing incentive.
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