To Fee or Not to Fee?

If the pandemic has taught both the travel industry and consumers anything, it's the value of an experienced agent. There are horror stories of consumers who booked trips without an agent and faced the anonymity of being "just a number," a fate that can befall those who book without an advisor.



Agents, on the other hand, took the brunt for their clients. They're the ones who, on behalf of their clients, waited for hours on hold with providers, navigated the (seemingly daily) changes and updates to travel restrictions and spent days arranging for their clients in destination to come home safely and sooner than planned.



And they did all of that without getting paid.



The topic of commission recalls has been a hot one this year. Agents, who did all the work leading up to the booking and then when the pandemic hit, continued to provide a service to their clients. But the commission rules apply when a trip is fulfilled. When a trip is cancelled, so is the commission.

On the flipside, the tour operators who pay the travel agents the commission, also don't get paid if a trip is cancelled. They also lose the revenue from the trip booking. Quite frankly, if travel providers were to pay out commission on cancelled bookings, they would lose what has been estimated to be in the millions per provider, on top of the daily costs to continue operations. That at a time when loads are down more than 90% across the board. Simply put, if a traveler doesn't travel, it hits everyone hard in the pocketbook - the traveler, the agent, and the travel providers.



Is the answer a travel agent service fee?



"Professional fees are for service rendered - not for booking, that is what your commission is for," says Lary Neron, AirfareConsultant.com. "Since all of us provide different levels of services, it's impossible to have the same fees. It's a highly personalized concierge service that applies to the air travel journey, but the same logic can be applied to any travel niche."

"I've traveled to over 40 countries. I've experienced what it's like taking the train versus flying between countries in Europe. Or taking a bus versus flying domestically in Asia. I've experienced a variety of accommodation, from hostels to the luxury of the Marina Bay Sands in Singapore. And I've had hands-on experience on how travel has changed as a result of COVID-19," says Teodor Mihal, Centre Holidays. "A website will not provide any of the above services. They will simply issue a ticket."

"I was always really unsure about implementing fees. I felt that it was a good tool to advertise no fees so that people would book with me instead of booking online themselves," says Chantele Gessner of Newwest Travel. "I now see the flaws in that method. This pandemic has highlighted how literally high and dry we can be left out to hang if we leave all of our income in the hands of the tour operators."



Many feel that for a fee structure to work, it has to be implemented across the board, meaning all agents will need to agree to offer a fee, or else those who do, are put at a disadvantage. And since every travel agent is different and can offer specialized services, the question becomes how are those fees set?



"We all must stick together and charge professional fees for our time, service, resources and intellectual property now more than ever with, so many changes," says Luana Johnsgaard, CTC Travel Time Inc. "Keep it simple, don't over explain or apologize. Most people don't even question it, as they expect to pay for service as we all do with banks, doctors, lawyers and accountants, for example."



Johnsgaard explains that when she gets an inquiry that's "all over the map", or for a small group, which makes her think they're likely shopping around, she charges a $100-200 "commitment deposit" that she then applies toward the booking for which she still charges a service fee.



"In my quotes I explain the fee is for research, advice, confirmation, invoicing, special requests, ticketing and full service throughout," Johnsgaard says. "As we know, cancellations are more work than bookings, so I also charge a "min. $150pp agency cancel fee", which must be stated in the invoice remarks to be able to collect it or claim on cancellation insurance."



Gessner agrees. "Going forward, I am no longer content to leave my income on the table. And I think it would be a fantastic idea for our industry as a whole if more of us took our knowledge and professionalism more seriously and were all on the same page about implementing fees. I have definitely seen the light when it comes to that.



"I hope that more will soon follow suit,' Gessner says. "We need to value our time and knowledge more."

A fee structure is something that The Travel Agent Next Door also values for its agents. They've recently constructed an eight-module training program on service fees, with different learning areas, ranging from why you should charge service fees to the type of fees they recommend agents implement.



"We thoroughly believe that in order to increase service fees, it's all about changing your mindset and growing confidence," says Flemming Friisdahl, Founder The Travel Agent Next Door. "That's why we have constructed this training seminar, so our agents know the value they have! We have even gone as far to develop an authorization form so the agents can process services fees before beginning to work on a client's vacation plans."





The Travel Agent Next Door's training and authorization forms will be launching in early February.



Johnsgaard sums up what many agents are feeling.



"We can't continue to give free, professional service as it discredits our value and undermines our profession. By charging a fee it shows clients we are providing valuable, personal and professional service. The fee should not be reduced on a higher commission booking, it should be based on time and work involved.



"If we don't see value in ourselves how will anyone else?"