Override commission
An override commission is an additional payment or commission given to travel agents, wholesalers, or other intermediaries in addition to their regular commission.
It is typically based on meeting or exceeding specific performance targets or sales volumes over a defined period (monthly, quarterly, or yearly). For example, a travel agency might earn an override commission if it sells more than $200,000 worth of hotel bookings from a particular chain in a year.
The override commission is usually a percentage of the sales volume that exceeds the predefined target. It may also be structured in tiered levels, where the more sales an agency generates, the higher the percentage it can earn as an override.
By offering override commissions, suppliers motivate travel agents and other intermediaries to increase their sales volume. This incentive also allows suppliers to attract more partnerships, ultimately expanding their market reach.