A brief explanation of commission and service fees
November 25th, 2021
Have you wondered how I get paid? Does it cost more to use the services of a travel advisor? Let me break it down a bit.
Commission
Travel agencies get paid a commission by our suppliers. This commission is built into the price you see. Let's say you see a vacation package for $2000 per person online. When you book with your travel advisor, the company offering the package sends a certain percentage of that price* to the travel agency. How much the agency gets is an agreement between the supplier and the agency, and how much your advisor gets** is an agreement between the agency and the advisor.
HOWEVER: When does the company send the payment to the agency? Typically not until AFTER you have travelled! So in most cases, travel advisors are taking care of your booking months prior to your travel, and not getting paid for the work they do until you return. If you happen to cancel? Many times the travel advisor loses out on the commission they would have earned, and therefore they have worked for free. It's unfortunate, but that's the way it is.
* The commission sent back to travel agencies is a percentage of the BASE fare; the taxes and fees do not count in the calculation. ** Some agencies pay their advisors a salary or hourly wage instead of a part of the commission they receive. If your travel advisor works from home (like me!), it is usually safe to assume they are paid on commission.
Service Fees
So, yes, you read correctly: travel advisors don't get paid for their services until you return from your trip, and if you cancel, it's possible they won't get paid at all. Yet they're working hard for you making sure you are as stress-free as possible not only through the booking process but should anything unpleasant come up prior to or during your trip.
This is why many travel advisors charge fees. The commission paid by the supplier often doesn't adequately compensate for their hours and expertise in providing their service. Travel advisors, like any professionals who invest in their business to provide quality service, are unquestionably worth paying a fee.
"What about you, Jen?"
At this time I do not charge a service fee, though it is definitely something I will look at in the future. Am I worth a fee? Absolutely - see the "Why Book With Me?" section on the website. Right now though I am focusing on growing my business and would like to prove that worth to more people before charging for it just yet. ;)
That being said, I hope that people keep this in mind whether working with myself or any other travel advisor not charging a fee: we don't get paid unless you book, and our time is valuable. "Online is for looking, travel advisors are for booking." :)
Thanks for reading! Ready to start planning? jen.m@gotravelcompany.com
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