Expedia Travel Agent Affiliate Programme (TAAP) has introduced its new Dynamic Commission compensation model, which will roll out globally in 2018.

Unlike a fixed percentage compensation on all bookings, Dynamic Commission is closer to a revenue sharing structure between the company and its travel agent affiliates, offering agents the opportunity to choose hotels with the commissions that can maximise profitability for their business.

Dynamic Commission is now available for all hotel product and replaces the previous Expedia TAAP hotel commission payment model. Four different commission levels are available: Basic, Basic+, Premium and Premium+. The different levels give agents the control and flexibility to optimise their earning potential. In particular, the Premium+ level allows agents to share in the upside where hotels offer Expedia higher margins.

The new model offers agents complete transparency in how much they will earn on each booking. Additionally, Dynamic Commissions offers more freedom to travel agents, as the same commission is offered for 'prepaid' or 'pay at checkout' options.

Diego Pedrani, senior director for Expedia Partner Solutions, said: “Our new dynamic model was developed specifically with feedback about commissions in mind. It incentivises agencies to focus, where possible, on hotels that pay Expedia higher commission and where we can share that upside with agents. Additionally, we believe this model comes as a benefit to our business travel affiliates who now can take advantage of even greater flexibility on both prepaid and pay at the hotel reservations.”

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