In this guide 6 sections
Track commission as a status on each booking line. Move it from expected at confirmation, to earned once the client pays and travels, to invoiced, then received. Compare received against expected, and flag anything overdue or short paid so you can chase the supplier before the booking goes cold.
Start at supplier confirmation
A booking is not income yet. Record the confirmation number, supplier, service dates and commission terms, because a hotel may pay after checkout while a tour operator may pay once the group departs.
Enter the expected commission now. It will change, but you still need a starting figure to compare against when the supplier’s statement finally arrives, otherwise every difference looks like a surprise.
Net rate bookings differ. You buy at net and add your own markup, so no supplier commission ever arrives, and an unmarked net line will look like missing income at month end.
- Supplier, confirmation number and service dates
- Gross price and commission rate or net rate
- Expected commission and basis for payment
- Cancellation and amendment deadlines
Client payment and the supplier payable
Client money arrives as deposit and balance. Record each against the booking with its date and method, since the final payment date drives both your cash flow and the supplier’s deadline.
Then comes what you owe. Some suppliers want full payment less commission, while others want the gross and pay your share weeks later, and that choice changes the payable and the receivable.
Keep both on one booking screen. Cancellations hurt most here, because the client refund, the supplier credit and the lost commission must sit side by side or the true loss stays hidden.
The statuses that matter
Use a short list of statuses. Apply them the same way to every booking, because too many statuses turn into decoration that nobody reads or updates after the first busy week.
Each status needs an owner. Who moves a line from earned to invoiced, and on what event, must be written down, or within a month nobody trusts the filters on the tracker.
Review the list weekly. Anything parked beyond the supplier’s stated payment terms is a case to chase, so sort the tracker by days outstanding and start with the oldest.
- Expected: confirmed, not yet travelled
- Earned: client paid and service delivered
- Invoiced: claim sent to the supplier
- Received: money banked and matched
- Short paid: received less than expected
- Cancelled: no commission due
Matching receipts to bookings
Suppliers pay in batches with a statement listing passenger names, PNR or voucher numbers and booking references, so match each line to a booking, never to a total. Tick what agrees and mark the rest.
Short payments need a reason. A seasonal override rate may have lapsed, a cancellation fee may have been netted off, or the supplier may have deducted a tax you assumed was exempt. Write the reason beside the line.
Airline and consolidator money often arrives through a settlement report, and the same rule applies, so match each line to your tickets and chase any missing e-ticket number.
Chasing overdue and short paid commission
Run an ageing list monthly. Group it by supplier and show days since travel, then send a statement of unpaid commissions that carries booking references, lead passenger names and the expected amount.
Log every chase and reply. Suppliers answer a specific list far faster than a general complaint, because an accounts clerk can check each reference without searching the whole account.
Pick your three biggest suppliers. List every earned commission that has not been received, then send each supplier a statement by Friday so the next remittance covers the gaps.
Commission tracker worksheet
Every booking line gets its own row. Columns are booking reference, client, supplier, confirmation number, travel date, gross value, expected commission, status, date claimed, amount received, difference, reason for difference and next chase date. A summary block at the top totals expected, earned, received and overdue commission by supplier, so the weekly review starts from one view.
Open a blank worksheet to printQuestions owners ask
When is travel commission actually earned?
It depends on the supplier’s terms. Many pay after the guest checks out or the trip departs, so earned usually means paid by the client and delivered.
What is the difference between net rate and commission?
With commission the supplier pays you a share afterwards, whereas with a net rate you buy low, set your own selling price and keep the difference.
How do I find short paid commission?
Compare the amount on each supplier statement line with the expected amount on your booking, and give any difference a reason code and a chase date.
Who should own the commission follow up?
One accounts person per supplier group. A single owner keeps chase notes in one place and builds a relationship with the supplier’s accounts desk, which shortens every later query about a short payment.