How Travel Agents Earn from Recommending Add-On Services Like Car Rentals and Local Experiences

Every trip I book includes at least a few questions I hear over and over: “Can you recommend a good car rental company?” “Are there any tours worth doing while we’re there?” “Should we book a cooking class or a snorkeling trip?”

For my first three years as an independent travel agent, I answered those questions for free every single time. I would research rental car options, compare excursion operators, send links to local experience providers, and then move on to the next client. I was doing the work of a concierge without earning a dollar for it.

It was not until another agent at a host agency conference mentioned her referral income from add-on services that I realized I was leaving real money on the table. She was earning an extra $6,000 to $8,000 a year just from commissions on car rentals, activity bookings, and excursion referrals, services her clients were going to book anyway.

Since then, I have built add-on referrals into every booking workflow I have. Here is how the commissions work, what rates to expect, how to set up agreements with providers, and how to make sure you never forget to offer these services to your clients.

How Affiliate and Referral Commissions Work for Add-On Travel Services

Most travel agents understand supplier commissions on flights, hotels, and cruise packages. You book through a preferred supplier or your host agency’s consortium, and you earn 10 to 16 percent on the booking value depending on the product and your tier.

Add-on services work on a similar principle, but the mechanics vary depending on the type of service and the provider. There are two main models you will encounter:

Affiliate commissions through booking platforms

Many car rental companies, excursion platforms, and activity booking sites offer affiliate or travel agent programs. You sign up, get a unique agent code or tracking link, and earn a commission every time one of your clients books through that link or mentions your code.

Many major excursion platforms and car rental aggregators have formal affiliate programs with automated tracking and monthly payouts. The beauty of these programs is that they require minimal setup: you apply, get approved, and start sharing your links. The downside is that the commission rates tend to be on the lower end because there is a platform in the middle taking its cut.

Direct referral arrangements with local operators

This is where the better money usually is. Instead of going through a platform, you build direct relationships with local tour operators, car rental agencies, private guides, and experience providers in the destinations you book most frequently.

A direct arrangement means you and the operator agree on a referral fee (typically a percentage of the booking value), and you send your clients directly to them. The operator tracks the referral (usually by having the client mention your name or a booking code), and pays you on a monthly or quarterly basis.

The advantage is higher commission rates and a personal relationship that benefits your clients. When you call a local operator you have worked with for two years and ask them to take extra care of a VIP client, they do it. That kind of service does not happen through a platform affiliate link.

Typical Commission Rates for Car Rentals, Activities, and Excursions

One of the first things I wanted to know when I started exploring add-on referrals was how much I could realistically earn. Here is what I have found across the main categories after five years of working with various providers:

Car rentals

• Platform affiliate programs: 4 to 6 percent of the rental value. On a $400 weekly rental, that is $16 to $24. Not huge per booking, but car rentals are high-volume: nearly every leisure client who flies somewhere needs one.
• Direct arrangements with local agencies: 8 to 12 percent. Smaller local rental companies in popular destinations are often willing to pay more because you are sending them business they would otherwise spend on advertising to acquire. I work with a family-owned agency in Maui that pays me 10 percent and gives my clients a guaranteed free upgrade when available.

Guided tours and excursions

• Platform commissions: 8 to 10 percent through most major booking platforms.
• Direct operator referrals: 10 to 20 percent. Smaller tour operators (private boat charters, wine tours, cultural walking tours) tend to pay at the higher end because your referral represents a significant portion of their marketing. A private sailing charter in the Caribbean that costs $800 at a 15 percent referral fee is $120 for a single recommendation.

Local experiences and specialty activities

• Cooking classes, spa packages, photography sessions: 10 to 15 percent is typical for direct arrangements. These tend to be higher-margin services for the operator, so they can afford to share more.
• Adventure activities (zip-lining, ATV tours, scuba diving): 8 to 12 percent. Safety-regulated activities sometimes have tighter margins, but the volume can be high in adventure-heavy destinations.

What this looks like in practice

Last year I booked 85 leisure trips. About 70 of those clients booked at least one add-on service through my referral links or direct partners. Here is the rough breakdown:

• Car rentals: 48 bookings, average $380, at 8% average commission = $1,459
• Guided tours and excursions: 35 bookings, average $220, at 12% = $924
• Local experiences: 18 bookings, average $175, at 13% = $410
• Private transfers and airport shuttles: 22 bookings, average $90, at 10% = $198

That is roughly $2,990 in add-on referral income on top of my regular supplier commissions. Not enough to retire on, but it covers my annual host agency fees and most of my marketing costs. And the effort to earn it is minimal once the system is in place. I am recommending these services anyway.

Setting Up Formal Referral Agreements vs. Informal Recommendations

There is a big difference between casually telling a client “you should try this tour company” and having a structured referral arrangement that actually pays you for that recommendation. I have done both, and the difference in income is stark.

Why informal recommendations cost you money

For years I was recommending the same car rental agency in Cancun to every client who asked. I probably sent them 30 or 40 clients before it occurred to me that I should be earning something for that. When I finally approached the owner and proposed a referral arrangement, his response was essentially “I wondered when you were going to ask. I have been getting your clients for two years.”

He was happy to set up a 10 percent referral fee because he knew the value of what I was sending him. Those were clients he did not have to acquire through ads or listing fees on travel platforms. But until I asked, he was getting all that value for free.

How to propose a referral arrangement

Approaching a service provider about a referral arrangement is straightforward once you understand their perspective. They want more customers at a lower acquisition cost. You are already delivering that. A referral fee simply formalizes what is already happening.

Here is how I approach it:

• Lead with volume. Tell them how many clients you send to their destination per year. “I book about 15 trips to Costa Rica annually, and most of my clients need a reliable car rental” is a compelling opener because it gives them a concrete number.
• Propose a specific fee. Do not leave it vague. Say something like: “I am thinking 10 percent of the booking value for every client I refer who completes a rental.” A specific number starts the negotiation. If they counter at 8 percent, that is still better than zero.
• Keep the agreement simple. The arrangement should cover the referral percentage, how referrals get attributed (booking code, client mentions your name, unique link), and when and how you get paid. A clear email exchange confirming these terms is enough to get started.
• Start with operators you already recommend. Your strongest agreements come from relationships where the operator has already seen the quality of clients you send. If you have been recommending someone for months without compensation, that conversation is easy. They already know your value.

What a good referral arrangement covers

Keep it simple. The best arrangements I have are ones where both sides understood the terms from the start and there was never an awkward conversation about money. Here is what to agree on:

1. The referral percentage or flat fee. Percentage works better for variable-price services like car rentals and private tours. Flat fees work for standardized products like airport transfers with a set price.
2. How the referral gets tracked. A unique booking code is cleanest. Having the client say “my travel agent sent me” works too, but it is less reliable. Some operators will set up a dedicated booking link or phone line for your referrals.
3. Payment schedule. Monthly works for high-volume partners. Quarterly is fine for operators you send fewer clients to. Agree on this upfront so nobody is guessing.
4. Quality expectations. This is the part most agents skip, and it matters. Make it clear that you expect the operator to deliver the same quality to your clients that earned them your recommendation in the first place. Your reputation is attached to every referral you make.

Bundling Add-On Recommendations into Your Booking Workflow

The biggest mistake I made early on was treating add-on recommendations as an afterthought. I would book the flight and hotel, send the confirmation, and then maybe remember to mention car rentals or tours a few days later. By that point, half my clients had already booked those things on their own through a quick Google search.

The fix was building add-on recommendations directly into my booking workflow so they happen automatically at the right moments.

The three touchpoints that work

After testing different approaches, I have landed on three natural moments in the booking process where add-on recommendations convert best:

1. At the time of booking confirmation. When I send the trip confirmation, I include a short section titled “A Few Things Worth Booking Early.” This covers anything that tends to sell out: popular excursions, sunset sailing tours, restaurant reservations at hard-to-get spots. The urgency is real, not manufactured, and clients appreciate the heads-up.
2. Two weeks before departure. I send a pre-trip planning email that covers car rental options (if they have not arranged one yet), suggested activities based on their interests, and any local experiences I think they would enjoy based on what I know about them. By this point they are actively thinking about the trip and ready to make decisions.
3. During the trip via a digital guide. I create a simple digital itinerary for each trip that includes my recommended operators with booking links. Clients reference this while they are on the ground, and it catches the spontaneous “what should we do tomorrow?” moments that often lead to experience bookings.

Building a destination-specific recommendation template

If you book the same destinations repeatedly (and most independent agents have five to ten destinations that account for the bulk of their bookings), creating a recommendation template for each destination saves you enormous time.

My templates are simple documents that I customize for each client. For Hawaii, my template includes:

• Two car rental partners (one budget, one premium) with my referral codes
• Three to four excursion operators organized by island (snorkeling in Molokini, helicopter tours on Kauai, luau in Maui)
• Two or three local experience providers (a farm-to-table cooking class, a surf lesson outfit, a private photography session)
• Airport transfer options with booking links

When a client books a Hawaii trip, I pull up the template, customize it based on their interests and which island they are visiting, and include it in my communication flow. The whole process takes about ten minutes per booking.

Making recommendations feel personal, not transactional

The key to earning from add-on referrals without making clients feel like they are being sold to is the same principle that applies to every other part of being a travel agent: genuine knowledge and honest recommendations.

I only recommend operators I have personally vetted. I have taken the snorkeling tour. I have rented from the car agency. I have eaten the meal that the private chef prepares. When I tell a client “you need to book the sunrise kayak tour with this company. The guides are incredible and they take you to a sea cave that the big tour boats cannot access,” that is real. The client can hear the difference between a genuine recommendation and a script.

If a service provider’s quality drops, I stop recommending them regardless of the referral fee. I dropped a popular ATV tour operator in Mexico last year because two clients reported safety concerns. The 12 percent commission was not worth a single client having a bad experience on a trip I planned.

5 Steps to Start Earning Add-On Referral Income as a Travel Agent

If you are not currently earning from add-on recommendations, here is the process to get started:

1. List your top five destinations by booking volume. These are the destinations where you already have knowledge and send the most clients. Focus your referral efforts here first.
2. Identify two to three add-on services per destination that your clients ask about most. Car rentals, airport transfers, and one popular activity or excursion are a good starting combination.
3. Reach out to operators you already recommend. If you have been sending clients to a car rental company or tour operator for free, contact them and propose a referral arrangement. Most will say yes because they already know the value of your referrals.
4. Build a recommendation template for each destination. Include your referral links or booking codes, a short personal note about each operator, and instructions for the client on how to book.
5. Add add-on recommendations to your booking confirmation and pre-trip emails. Make it part of your standard workflow so it happens automatically. The goal is that no client leaves for a trip without seeing your curated recommendations.

Common Pitfalls and How to Avoid Them

Do not overload clients with options

I learned this the hard way. My first destination template for Cancun had 14 different activities listed. Clients were overwhelmed and booked nothing. Now I keep it to three to five recommendations per destination, curated to what I know about the specific client. A couple on a honeymoon does not need the same list as a family with three kids.

Do not recommend services you have not vetted

A tour operator offering 25 percent commission should raise a flag, not excite you. Unusually high commission rates often mean the operator is struggling to get clients through normal channels, and there is usually a reason. Always try the service yourself or get reliable feedback from colleagues before recommending it to clients.

Do not chase every affiliate program

There are dozens of travel affiliate programs you could sign up for. Resist the urge to join all of them. Focus on the services your clients actually need in the destinations you actually book. Three strong, well-maintained partnerships earn more than fifteen neglected affiliate links.

Do not forget to follow up on payments

With multiple referral partners across different destinations, tracking who owes you what gets complicated quickly. I lost several hundred dollars in my first year because I did not keep track of referrals sent to a tour operator who conveniently forgot to pay. Now I record every referral I send and reconcile monthly.

Growing Your Add-On Referral Income Over Time

The best part of building add-on referral relationships is that they compound. The more clients you send to a reliable operator, the stronger the relationship gets. Stronger relationships lead to better commission rates, priority service for your clients, and occasionally exclusive experiences that give you a competitive edge.

One of my excursion partners in Greece started offering my clients a complimentary appetizer tasting at the start of their food tour after I had sent them about 20 clients over two years. That small extra touch made my clients feel special, led to glowing trip reviews, and became a selling point I could mention to future clients booking Greece.

The referral income grew on its own as well. That same partner bumped my rate from 10 to 14 percent after the first year because I was consistently sending groups of four to six people, not just couples. Higher group sizes mean more revenue per tour slot for them, which justified the higher fee for me.

Travel agents who build referral partnerships with wedding planners, event coordinators, and corporate contacts already understand how valuable these relationships are for primary bookings. Add-on referrals follow the same logic. They just extend it to the services that surround the trip.

Putting It All Together

Add-on referral income is not a separate business. It is a natural extension of what you already do as a travel agent. You research destinations. You vet local operators. You answer client questions about car rentals, tours, and activities. The only difference between doing that for free and earning from it is a conversation with the operators you already trust and a system that makes sure you offer those services to every client at the right moment.

Start with the destinations you know best and the operators you already recommend. Formalize one or two arrangements this month. Build a template. Add it to your booking workflow. Then track what earns and expand from there.

If you want a straightforward way to manage referral agreements with your add-on service partners and keep track of what is owed without chasing down payments manually, take a look at what PureIntro offers for travel and tourism professionals.

This post reflects one professional’s experience and is for informational purposes only. It is not business, legal, financial, or professional advice. Results described are individual and not guaranteed. Referral fee arrangements may be subject to state and local regulations. Consult a qualified professional for guidance specific to your situation. PureIntro facilitates referral tracking and payment processing but does not guarantee payments between users or any particular business outcome.