In the UK, the majority of leisure travel advisors do not expect a direct payment from the client. Instead, their earnings typically come from commission from the supplier, as well as from bonuses and incentives for meeting targets.
Things are starkly different in the US, where it has become almost standard practice for travel advisors to charge separate fees for all sorts of services. Clients can be billed for everything from the research and planning of the trip, to the creation of more bespoke itineraries. In some cases, clients might even be charged an hourly rate for consultancy.
Advisors’ reasons for not charging fees vary; some believe it’s a deterrent to new business, while many fear they may lose loyal clients. Others simply think it’s not necessary, and are content to make money solely from commissions.
Amanda Teale, founder of Minerva Private Travel, is not buying any of it.
Since introducing fees in April 2020, the luxury advisor has only seen her Surrey-based agency flourish. All Teale’s bookings now carry a 3.5% charge (non-refundable, no exceptions). There is also a consultation fee for new clients, which will be deduced from the booking if confirmed, and – she says – no refunds for cancellations.
The industry veteran, who has previously called for action on non-professional agents, says she has received zero pushback from clients. Having seen how much charging fees has enhanced her business, Teale is now on a mission to help other advisors do the same.
Why should advisors charge fees?
For Teale, the reason for charging fees is simple: nobody should work for free.
“There is no other trade in the world that works like this,” Teale argues. “People pay lawyers or accountants a lot of money because they study for a profession, and have an expertise in that field.”
Teale believes this practice is fuelled by a misconception around the industry; the consumer sees travel as a glamorous hobby and forgets that it is also a field of study.
“There is no other trade in the world that works like this”
“People come to me because they say, she’ll know where to send us,” she says. “How do I know that? Because I’ve spent 35 years travelling the world. You’re moving every day to see product, travelling long distances, and working on little sleep. It can be exhausting.”
Charging fees also financially protects the advisor, ensuring they still get paid something even if the booking falls through.
“Cancellations can happen at any point - it’s not just Covid,” Teale says. “It could be natural disasters, terrorist attacks. As advisors, we need to be prepared.”
How should travel advisors introduce fees?
Introducing fees doesn’t need to be difficult, but it does need to be clear.
It’s crucial that clients understand why they are being charged, so outline what the payment covers in simple terms from the first interaction.
Teale sends a sleek PDF document to all Minerva Private Travel clients, explaining that the fees reflect the time it takes to gather knowledge, research, and curate bespoke itineraries. Crucially, this is followed by what clients are getting for their money: “Executive assistant-style support and 24-hour service in all time zones.”
Teale adds that charging fees also benefits the client, who can now receive a higher standard of service from the advisor. “If I charge a fee, I can run a better business, be more efficient and give my clients better service,” she explains. “You get what you pay for.”
Will I lose clients by charging fees?
Teale acknowledges that a client may drop off once the advisor introduces fees, but argues that this defection isn’t always a bad thing. Rather than viewing it as lost business, it can be an opportunity to invest in your engaged clients and ultimately, provide a better service overall.
“It gets rid of the dead wood - the clients who try to price match, the ones who are difficult with enquiries, the ones wasting your time,” she explains. These clients can have a knock-on effect on your service, which in turn, can negatively impact your relationships with your engaged clients.
“It gets rid of the dead wood - the clients who are wasting your time”
“Once those people are gone, you can then spend more time on the good clients and give them a better service,” Teale says. “In turn, this gets you more clients of the right calibre.”
Should advisors charge a consultation fee?
Teale charges a £250 consultation fee for all new clients, which will be deducted from the booking if confirmed.
This payment, which usually covers tasks like a quote for the proposed trip, is clear way to immediately communicate that this a professional service. “You should never quote something for nothing,” she says.
