We are a travel agency having 15 employees. We don't have any incentives for our company as of now. However, we are looking to implement an incentive structure. The challenge we face is that we don't have a fixed margin for a booking. How should we proceed in developing our incentive structure? We need your guidance on this matter.
From India, Ahmedabad
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From India, Ahmedabad
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Dear Gosanbi,
The travel industry is seasonal; hence, you must have already identified the high volume sales quarters and the lower volume ones. Often, the selling point is the package that is offered, not how aggressive the sales team is. Given the fact that you have already considered this, how do you differentiate between the incentives? I mean, during the high volume months, the numbers would rise on their own. Are you going to increase the percentage on sales offered as an incentive during the lower volume months? How do you differentiate between selling a package for an in-demand location and an exotic one?
You can either offer a fixed slab for an incentive on selling X number of packages, recurring if there are more or less in number, or you may alternatively define the percentage that you may offer as an incentive on each package. If you keep a fixed slab, it would need to be regulated with respect to the Holiday Season.
Looking forward to hearing from you.
From India, Mumbai
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1893The travel industry is seasonal; hence, you must have already identified the high volume sales quarters and the lower volume ones. Often, the selling point is the package that is offered, not how aggressive the sales team is. Given the fact that you have already considered this, how do you differentiate between the incentives? I mean, during the high volume months, the numbers would rise on their own. Are you going to increase the percentage on sales offered as an incentive during the lower volume months? How do you differentiate between selling a package for an in-demand location and an exotic one?
You can either offer a fixed slab for an incentive on selling X number of packages, recurring if there are more or less in number, or you may alternatively define the percentage that you may offer as an incentive on each package. If you keep a fixed slab, it would need to be regulated with respect to the Holiday Season.
Looking forward to hearing from you.
From India, Mumbai
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Incentive Plan.xls
Incentive Plan policy-template s.doc