Jacob Marek | January 26, 2018 12:00 PM ET
The Millennial Travel Agent: To Fee or Not to Fee?

Crickets.
After hours of stringing together an itinerary with a long list of demands—carefully selecting the right hotels, checking transfers and flights, and suggesting tours and activities—I was met with silence from my prospective clients.
A couple of weeks later, I received a succinct email: “Thanks for your recommendations, but we decided to book this online ourselves.”
Shaking my fists dramatically toward the skies, I screamed the F-word.
“Fees!” I shouted at the top of my lungs.
(Wait, what F-word were you thinking?)
Know Your Worth, Then Add Tax
That infuriating experience was an eye-opener, but I’m grateful because it helped shape my views on travel planning fees. It made me realize that my time is worth something and that my services don’t come free.
Charging fees is all about adding value to your clients’ experience. You’ve got to know your worth—and then add tax (in the form of a fee).
I view my planning fee as payment for my time in organizing the trip; The commission I receive is my compensation for actually booking it.
If you think of it this way, you are still adequately compensated if a client takes your intellectual work and runs—after all, they essentially bought the itinerary. Obviously, the main goal is to get them to book the trip with you, but this way you won’t harbor resentment toward those who don’t.
Why Fees?
Perhaps you’ve been burned by a tire-kicking client like I was, or by price-shoppers who are simply looking for the absolute cheapest vacation. Even a small fee turns off the window-shoppers and repels the cheapos. You do not want to work with people who will waste your time or who nickel-and-dime you.
Simply put, a race to the bottom is not one that you want to win.
Instead, attract a higher-quality clientele by promoting your expertise and value. Emphasize the fact that by retaining you as a travel advisor, the fees often pay for themselves in the form of perks and other benefits.
For example, a nominal consulting fee is quickly justified when your clients receive a refreshing welcome cocktail, a complimentary meal, a spa treatment or are upgraded to a suite. These are just some of the perks my clients receive with my Virtuoso affiliation, and you bet I hype that up during my initial consultation!
Perhaps most importantly, planning fees can add a significant boost to your bottom line. If you’re not charging your worth, you are leaving money on the table. Imagine if you earn a $1,000 commission for an FIT trip. A modest $250 planning fee adds a full 25% to your bottom line!
READ MORE: Agent to Agent: Helping Low-Budget Travelers
Charge With Confidence
If you don’t believe in the value of the fee, neither will your clients. (The first time I attempted to implement my consulting fee, I was a bumbling fool.)
If you have a hard time articulating your value, try something like this: “This non-refundable planning fee covers my time in researching, planning and arranging services with my on-site suppliers. When you retain my services as your trusted travel advisor, I get to work re-confirming all reservations, sending you detailed confirmation materials, requesting exclusive upgrades and perks, and acting as your advocate before, during, and after your trip.”
You might be nervous at first and your voice will probably waver, but keep at it! It gets easier with practice.
Okay, But How?
According to the 2017 Hosted Travel Agent Service Fee Report by Host Agency Reviews, one-third of travel agents charge some sort of consulting fee. There are so many ways that travel advisors are finding success, so there is no right or wrong answer.
Some agents comfortably command thousands of dollars per trip, while others charge a small amount per person. Other travel agents have an hourly rate while some prefer to apply the fee toward the client’s final payment.
However you decide to value your time, ensure that it is in line with your expertise, time and one that you’ll feel comfortable with if someone doesn’t book with you. At IntroverTravels, I kept it simple: a flat $250 for five or fewer travelers and just $50 per person for parties of six or more.
As the old adage goes, “nothing in this world is free,” and I hope by now you’re convinced of the need to charge fees, even if they’re only a small token of commitment by your prospective clients.
How are you implementing fees in your travel business and what questions do you have if you’re just starting out? Leave a comment and let me know!
Until next time, stay inspired.
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