This Week’s Biggest Travel Finance Questions — Answered

Every week, Antravia is asked a range of smart, specific questions from travel agents, hoteliers, and advisors trying to stay ahead in a changing industry. From commission timing to FX strategy, these questions show us where the real challenges lie, and where financial clarity can unlock stronger performance. Here are some of the most relevant finance, accounting and tax related questions we’ve seen this week, with insights that apply whether you’re just starting out or managing a mature travel business. Feel free to contact us if you have a question you want answering!

1. Should I be collecting a deposit directly from clients if I’m not a Merchant of Record?

Yes, but be clear with your client about what exactly that deposit covers. If you’re not Merchant of Record (MoR), you’re not legally selling the travel product - you’re just selling a planning or consulting service. In that case, your deposit should be framed as a fee for professional services rather than as a part-payment for a holiday package.

What’s important is clarity in your documentation. Make sure your client receipts, agreements, and communications all reflect what the deposit is for. You don’t want to find yourself issuing refunds on money you’ve already spent on time or planning. So, if you’re charging USD$ 250 upfront for itinerary curation, call it that, and keep it separate from supplier payments.

2. How should I track commissions if I’m a hosted agent with multiple suppliers?

The key is not to track supplier payments, it is really to track the value of each booking at the time it is confirmed. Don’t wait for commission reports to tell you what you earned. Keep your own log of each booking’s total value, the expected commission percentage, and the host’s split. This will help you if you have to query anything with the host.

What you really need:

• A working gross value for bookings

• The estimated payout

• The timing (date booked vs date of travel vs date paid out)
  
  

This lets you build realistic forecasts and chase payments proactively. Excel works if you’re disciplined. If not, look at programs like Trello, Notion, or a CRM with basic finance tracking. The systems are less important than the habit.

3. I work with hotels across Africa. FX fees and payment delays are a nightmare. What should I do?

We think you need two things: a multi-currency account with transparent fees, and better visibility on hotel side payment practices. Africa is not just one country from a treasury perspective - sending USD to Morocco is not the same as sending it to Kenya. Each country has its own banking quirks, and hotel partners vary widely in their ability to receive foreign funds quickly.

First, reduce conversion points. If your client pays you in USD and you send EUR to the hotel, you're eating FX twice. Second, speak to your payment provider about routing rules and payout speeds by country. Tools like Roam or Airwallex allow better control and can reduce margin erosion. Finally, confirm when the hotel considers a booking “paid”, in many cases, funds need to land and clear before a reservation is fully guaranteed.

4. Is it better to run my travel business as an LLC or a sole proprietor?

We also have a separate travel finance blog on this point! An LLC gives you legal protection and credibility, but the financial benefits depend on how you operate your agency business. If you’re making under USD$ 50,000 a year and not carrying client funds, a sole proprietorship might be fine in the short term. But as soon as you’re issuing contracts, taking payments, or thinking about team growth, the LLC becomes a smart move.

Where people get caught out is tax treatment. In the U.S., an LLC can be taxed as a sole prop, partnership, or S-corp, it’s the structure, not the tax status, that changes. What matters is separating personal and business finances, building your business credit, and reducing audit risk. Most advisors benefit from setting up an LLC early, even if just for peace of mind. Contact us for more info.

5. Hotel occupancy is up, but our margins are shrinking. What’s going wrong?

At Antravia, we love receiving questions from our hotel partners. But hate to hear about shrinking margins! You’re probably absorbing too many indirect costs. Margins don’t reduce just from discounting but they disappear in the details. Think food wastage, FX losses on supplier payments, late commissions to agents, and overstaffing during low occupancy periods. Many independent hotels confuse occupancy with profitability.

What you need is a per-room profitability check:

• What’s your cost per occupied room?

• How does that change by market segment (OTA, direct, group)?

• Are your high-occupancy days actually high-margin?
  
  

Run the numbers. A full hotel at 10% net profit is not a win if your break-even point is higher than you think. This is where Antravia often helps, building models that give hotels visibility beyond topline revenue.