The Four Most Profitable Travel Products

By Phil and Doris Davidoff

1. Groups.
Groups of almost any kind are the most profitable product you can sell, primarily because you have the most control over pricing and can project your profits better - assuming, of course that at least the minimum number of participants is reached.

2. All-inclusive resorts.
All-inclusive resorts are in the most profitable category because we earn commission on the largest percentage of a client's total travel cost. Other than groups, no travel product pays commission on as much as this type of resort. In addition to transportation, lodging, transfers and meals, all-inclusives pay commissions on alcoholic and other beverages, use of sports equipment (often including golf and SCUBA), gratuities and all taxes. One of the main reasons these resorts receive high satisfaction ratings from guests is that the decision-making process about what to do, where to eat or what to eat (i.e. steak or lobster) does not require consideration of cost - everything has been prepaid.

3. Escorted tours.
While not as inclusive as all-inclusive resorts, escorted tours include many activities - transportation, lodging, often comprehensive sightseeing, admission to attractions and many, but usually not all meals. Again, we are earning commissions on a large percentage of our client's total spending.

4. Cruises.
Even with the challenges of high non-commissionable fees and decreasing prices, cruises remain a relatively inclusive and relatively profitable product. We also benefit from the fact that no other segment of the leisure travel industry invests as much in consumer advertising or travel agency marketing support to attract business for us.