Retailers offer rebates

David Zuniga wanted to surprise his wife and three kids with a Vegas vacation last December, but the lowest fare he could find from his San Antonio hometown–$160 round trip on charter airline Funjet–seemed a bit rich. Then he stumbled upon Traveloni.com, an online travel agent; the agency had the tickets at $80 each and even threw in a bonus. It stood to make a 10 percent commission from Funjet–$8 a ticket–but kicked half of it back to Zuniga. Since he also bought two tickets for his parents, he ended up with a $28 rebate.

For years, travel agents have fretted as Internet discounters and airline/hotel/cruise sites have dangled prices that agents couldn’t match. Now the agents have a new come-on: rebating part of their commission from charter flights, tours, and cruises.

That’s pretty generous, considering that these commissions are how agents earn much of their living. When you buy a package tour, a cruise, or a week at an all-inclusive resort, the company gives a percentage of the cost to the agent–around 10 to 17 percent. So if you pay $2,000 for a cruise, your agent stands to pocket from $200 to $340.

Eat up. You won’t get rich from a commission rebate. At best, you’ll save a few bucks, perhaps enough for a dinner out. But in today’s price-conscious travel market, that can be enough to woo a traveler.

So how do you get a rebate? Just ask. Tactfully. Not every travel agent will say yes. And some bristle at writing a check but will gladly slip you a voucher for onboard cruise credit or try to wrangle a hotel room upgrade.

While givebacks are not illegal, they are controversial. Many tour operators have threatened to cut off agents who rebate. “We have to protect the integrity of our product,” says Lisa Bauer of Royal Caribbean cruises. Funjet has ordered its agents to stop refunds, denouncing rebaters as “rogue agents.” But Lynn Farrell, president of Foremost Travel & Tours, which owns Traveloni.com, disagrees: “The only ones being hurt,” she says of the crackdown, “are travelers.”

David Zuniga wanted to surprise his wife and three kids with a Vegas vacation last December, but the lowest fare he could find from his San Antonio hometown–$160 round trip on charter airline Funjet–seemed a bit rich. Then he stumbled upon Traveloni.com, an online travel agent; the agency had the tickets at $80 each and even threw in a bonus. It stood to make a 10 percent commission from Funjet–$8 a ticket–but kicked half of it back to Zuniga. Since he also bought two tickets for his parents, he ended up with a $28 rebate.

For years, travel agents have fretted as Internet discounters and airline/hotel/cruise sites have dangled prices that agents couldn’t match. Now the agents have a new come-on: rebating part of their commission from charter flights, tours, and cruises.

That’s pretty generous, considering that these commissions are how agents earn much of their living. When you buy a package tour, a cruise, or a week at an all-inclusive resort, the company gives a percentage of the cost to the agent–around 10 to 17 percent. So if you pay $2,000 for a cruise, your agent stands to pocket from $200 to $340.

Eat up. You won’t get rich from a commission rebate. At best, you’ll save a few bucks, perhaps enough for a dinner out. But in today’s price-conscious travel market, that can be enough to woo a traveler.

So how do you get a rebate? Just ask. Tactfully. Not every travel agent will say yes. And some bristle at writing a check but will gladly slip you a voucher for onboard cruise credit or try to wrangle a hotel room upgrade.

While givebacks are not illegal, they are controversial. Many tour operators have threatened to cut off agents who rebate. “We have to protect the integrity of our product,” says Lisa Bauer of Royal Caribbean cruises. Funjet has ordered its agents to stop refunds, denouncing rebaters as “rogue agents.” But Lynn Farrell, president of Foremost Travel & Tours, which owns Traveloni.com, disagrees: “The only ones being hurt,” she says of the crackdown, “are travelers.”

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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