"Everybody else gets paid for what they do. Why not you?"
That was the simple question asked by Flemming Friisdahl, founder of host agency The Travel Agent Next Door (TTAND) and the leader of a panel at last week's ACTA Leadership Summit titled: "Setting Your Standards Through Professional Fees."
It's been a quarter century since major airlines first capped, then slashed, and then in many cases eliminated commission payments to travel agents. As a result, many travel agencies closed and many agents left the business. But many others found ways to survive and thrive, by charging professional fees for their services.
Today, as the global travel industry tries to regain its feet after the biggest disruption in its history, travel is more complex than ever before, and advice from professionals is more valuable than ever. And yet, many Canadian travel advisors are still not charging fees.
Panelists say there's no excuse to not be fairly compensated for their knowledge and expertise.
"The issue isn't clients being unwilling to pay fees, it's agents not wanting to ask for them," said Norm Payne, a veteran travel advisor, educator and vice chair of ACTA's Ontario Regional Council. "I always instinctively felt agents should charge a professional fee. After commission cuts, charging fees was easy as pie."
Becky Kershaw, a TTAND advisor with 40 years in the business, says "fees have been coming in and out" during her career. "We need them to come in and stay," she adds.
Kershaw says a fee structure should be part of an advisor's business plan. "I use a letter that explains the fee structure. I don't give them an option. I'm not in Mexico, I don't barter."
Chelsea Wheately, CTC, works with CAA Atlantic in Charlottetown. Over her 14-year career, she says she's always had a strong belief in charging fees. "We offer a professional, personalized service that an online booking site can't provide. Fees need to be an honest and transparent part of the conversation from the beginning."
Payne says confidence is key to getting what you deserve. "You need to have confidence in yourself and in your ability to give clients what they want. Believe in yourself and ask for the fee."
Fees can vary depending on the advisor's experience and the complexity of the travel planning involved. "There are many different things that make an agent stand out," Friisdahl said. "But there needs to be consistency in having fees - a professional should always charge a fee for their service."
The panelists shared details on some of their fees. Wheatley says CAA Atlantic fees vary on whether clients are members or not, but the fee for booking an air ticket is $46. Payne says he charges $67 for an airline ticket and $120 per person for a cruise booking.
For her part, Kershaw says she did an analysis of past bookings to set her rates. For example, she estimates that making a cruise booking for two takes about five hours. Her price is $100 plus HST per adult on the booking. She also charges $200 plus HST per booking if a client cancels.
Payne charges $85 to book a 'free' Aeroplan ticket, and says "people are more than happy to take that burden off their shoulders." He books lots of them, calling it a "gold mine."
Even with travel close to a standstill for the past 18 months, Kershaw says sticking to her fee structure has paid off. "I've made $2,500 in fees in the past five months, even in these slow times. That's $500 a month I wouldn't have had."
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