Travel Agent Service Fees

[torrynlewis]

Hello Everyone,

I'm an agent with a large agency that doesn't provide very in depth training and professional development. I've been working for the company for 3 years and so I'm confident to say that I do know what I'm doing and I consider myself quite good at my job, however I acknowledge that there are a lot of things I need to upskill on.

i've recently realised that every one of my colleagues add service fees. I work on the in built commissions and a $20-$50 per person booking fee for flights.

I'm wondering, how prevalent are service fees? what is an appropriate service fee? should I invoice it as a separate line item or inbed it into the gross price of the product?

I have been asking around to friends and family and most people were surprised that I haven't been charging more. I would love to hear from some other industry professionals on common practices and justifications you use, especially if asked by a client.

 

[clazman]

Commission only mean you are going to sell me the best fare for you, while fee should mean the best fare for me.

Happy to pay a fee for a service, but should be fully declared up front and knowledge of what is included known

 

[puppysparkes]

Are you a journalist or employed by a marketing or research entity? What does your industry body say? Kinda weird that your company training would not give you a guideline. If you work for Scroo Turner it's pretty clear.

 

[torrynlewis]

As I mentioned in my original post, I work as a travel agent. I'm after advice from a well established and reputable community so that I can become better with a more professional service.

Also as I mentioned, we're given very little training and support. Almost all of what I've learnt has been from asking the same question to many people, making mistakes and continued curiosity.

It is very weird that we don't have a guideline so I have approached this community for guidance. I'm coming from a place of honour and integrity with the intention to be a better professional and offer a better service to my clients. I don't deserve the response you've given.

 

[OzEire]

Can you give some examples of what you mean by an 'additional' service fee. Eg:

Customer asks for MEL-BKK and TA finds options direct for $900, via SIN for $700 and via SYD for $800, but on their preferred airline. Do you offer the flight at $950 and pocket the $100 'service' charge for getting them on their preferred airline ?

 

[puppysparkes]

As I mentioned in my original post, I work as a travel agent. I'm after advice from a well established and reputable community so that I can become better with a more professional service.

Also as I mentioned, we're given very little training and support. Almost all of what I've learnt has been from asking the same question to many people, making mistakes and continued curiosity.

It is very weird that we don't have a guideline so I have approached this community for guidance. I'm coming from a place of honour and integrity with the intention to be a better professional and offer a better service to my clients. I don't deserve the response you've given.

Thanks for your reply and apologies for coming across as I did. I was simply clarifying as I have seen responses from AFF members end up in the media, abc's checkout springs to mind. I would suggest anywhere from 5-20% based on the number of pax, segments, whether it's for an individual or a business and the time you have spent on the booking. It's always a difficult balance for you because customers may end up shopping around. Depending on where you are based it may be more important to develop and maintain a loyal customer base, who later refer friends and family to you. On top of that your organisation might require you to hit a monthly sales target. In the end it may end up being a case case situation based on the above, without a general rule.

 

[Sprucegoose]

Depends on the level of service experience etc. detailed itineraries that are clever I am always happy to pay more.

 

[ftm]

I would expect the company to set the expectation for you with regard to service fees. If they say charge them, then you do, and they would say how much. If they dont, then you dont charge them.

It isnt the right image for aome people in the same store to charge fees, while the oerson next to you doesnt. The manager would determine how they want the store to run...

 

[mimishat]

Have you approached the manager to ascertain if there is a standard company charge structure (and if not maybe suggest they should have one)? I think whatever you decide to charge should be indicated up front and a separate line on the invoice. Just my 2 cents - bog standard point A to point B flights should be covered by your inbuilt commission. More complex itineraries I'd be happy to pay more for.

 

[puppysparkes]

Hello Everyone,

I'm an agent with a large agency that doesn't provide very in depth training and professional development. I've been working for the company for 3 years and so I'm confident to say that I do know what I'm doing and I consider myself quite good at my job, however I acknowledge that there are a lot of things I need to upskill on.

i've recently realised that every one of my colleagues add service fees. I work on the in built commissions and a $20-$50 per person booking fee for flights.

I'm wondering, how prevalent are service fees? what is an appropriate service fee? should I invoice it as a separate line item or inbed it into the gross price of the product?

I have been asking around to friends and family and most people were surprised that I haven't been charging more. I would love to hear from some other industry professionals on common practices and justifications you use, especially if asked by a client.

OP are you able to disclose who you work for? Don't need to know the site location.That information will provide some context.

 

[RooFlyer]

I know you are asking for comments from industry professionals - and I'm not one.

I must say as a heavy user of a TA, the concept of being charged a service fee as an individual is unknown to me. Sometimes when my itinerary is particularly complex and/or I've mucked around a lot, I have asked the TA to charge me a fee, and they have steadfastly refused. They get flowers instead . I think they do charge corporates, as they also book me for my client, and occasionally I get sent the invoice by mistake (which I delete).

So, sorry not to address your direct query, I can but agree with the others that this is only a question for your manager.

 

[puppysparkes]

I'm posting under my partners handle.Rooflyer, I worked with Flight Centre for over three years. Firstly, I am a little shocked that you believe there is no additional charge added to the booking. For example, an airline sells Flight Centre 6000 seats at a certain price, Flight Centre resells those tickets including a decent markup which is our commission. Who would operate a business at net? It wouldn't be worth it!
As a TA, I had KPI's, I had to reach certain sale targets. I didn't do it for the love, I did it for the commission. We got paid $30,000, all sales including hotels, insurance, passport photos and flights added to my monthly pay. Anyone can book a flight online however booking through a TA gives you a different experience.
Flowers are wonderful, commission is better.

 

[PLANT]

And you got 10% flights and hotels?

 

[RooFlyer]

I'm posting under my partners handle.Rooflyer, I worked with Flight Centre for over three years. Firstly, I am a little shocked that you believe there is no additional charge added to the booking. For example, an airline sells Flight Centre 6000 seats at a certain price, Flight Centre resells those tickets including a decent markup which is our commission. Who would operate a business at net? It wouldn't be worth it!
As a TA, I had KPI's, I had to reach certain sale targets. I didn't do it for the love, I did it for the commission. We got paid $30,000, all sales including hotels, insurance, passport photos and flights added to my monthly pay. Anyone can book a flight online however booking through a TA gives you a different experience.
Flowers are wonderful, commission is better.

I think you might like to re-read what I wrote and you may be a little less shocked. You are talking about commission - I was talking about service fees on top of commission, as per the OP's query.

Of course TAs earn commission, and yes, I'm going to add here. I also question whether the FC model is the same as my own TA's, a mid sized Melbourne based one with a lot of corporate business. Same consultant for 8 years of moderate to heavy international and domestic travel (~90 sectors pa; 200,000 - 300,000km pa) for self and for client, so I have a fair idea of how things work! But of course their overall margins are their business.

Here's my 'model'. I enjoy the planning of an itinerary and I go on line looking at routes and prices for flights and hotels. I then indicate to the TA a 'target' route and price of what I'm after, and price for hotel with/without additions. Like I've said, I've worked with the same TA (individual) for about 8 years so we have a very good relationship. If they can't match or better the hotel pricing, I usually do it myself (happens maybe 1/3 of the time). But sometimes they book it for me on-line, outside the GDS for probably no commission :shock:. If they still get one, definitely win-win. For straightforward flights (eg Aust-USA or Canada), the pricing is pretty transparent. For more complex itineraries, they give me the price of about 3 options (eg best price, best routing/schedule and then maybe any current AY, QR or LH deal to Europe). I have a 16 sector trip to and round South America coming up; I priced it myself using OneWorld's 'Visit South America Airpass' (pricing per sector, depending on length, as you would know) and then asked the TA to better it, or book it. They bettered it, and I'm happy.

Mind you, I'm usually happy to pay more than on-line price for complex itineraries - for the service I get!

Good luck to FC for buying in bulk and getting a good margin and giving good commissions; obviously lots of satisfied punters out there. But to be honest - and no offence meant - if booking through FC I'd wonder if the routing /pricing I was being offered was governed more by what was best for me, or whether it was one which offered the greatest margin?

 

[trippin_the_rift]

No wonder the industry has such a poor reputation.... Why not charge for something else other than for booking a flight/hotel/transport where the customer/company will see value but won't cost you anything. A number of things come to mind...

I would cut your business from me entirely if there were additional fees for basic point to point flights. Mainly because your job could be replaced by a basic script.

Be creative... Charge for something else and you'll make more money and make your clients happier in the process!