Money Talk: Why I Charge Service Fees

For whatever reason, the way that travel advisors make their money is a complete mystery to most people, so allow me to let you in on the secret (and then explain the part about my fees).

Many people think that using a travel advisor automatically means that their trip will cost more than if they book it themselves. This is usually not the case—the price you’re seeing online for a resort stay, airline ticket or rental car will usually be the same price (and might occasionally be less expensive) when you book through me.

“But if it costs the same if you book it, how are you making any money?” Because when I book your trip, I get a commission on certain pieces of your trip. The suppliers (hotel, tour operator, car rental agency, and sometimes airlines) pay me a percentage of the cost of your booking. The amount I make depends largely on the amount you spend on your trip.

This is standard throughout our industry, but it is not without its problems. First of all, commission is only paid after the client’s trip is complete. So, I might spend a lot of time working on a trip for a client and not get paid for that work for more than a year. That also means that I could create a beautiful, personalized custom itinerary for someone and they could turn around and book it themselves on the internet—and then I don’t get paid AT ALL. (No, really. Some people actually do that.)

Another problem with relying solely on commission is that it incentivizes advisors to sell products that are going to yield the best returns, regardless of whether or not it’s in the client’s best interest. For example, there could be two similarly priced hotels—one is an okay match for what the client is looking for and gives 15% commission, the other is perfect for the client but gives 10% commission. Guess which one most advisors are going to propose to their client…

The commission-only system does not value my expertise, my time, or my relationship with my clients—it values my ability to steer business their way.

Hence, my service fees.

Charging service fees takes care of a couple of the problems I outlined above. First, It shows me that you are serious about working with me. It is an investment in our ongoing working relationship. If the thought of paying for my services sends you running for the hills, then that’s ok—we’re just not a right fit for each other. It also ensures I’m going to propose the trip that is exactly right for you, not the one that will earn me the most commission.

One of my colleagues views her fees in this way:

Look, if your air conditioner stops working you call the repair company, because they’re the experts. They know more than you do about air conditioners and how to fix them. They don’t know what’s needed until they come out to look at your AC, so they charge you for a service call and then provide an estimate of the repair costs. It’s up to you if you want to pay for the repair, but you do have to pay them for coming out.

I agree with that sentiment, but I also believe that the value of hiring a good travel advisor doesn’t come exclusively from the trips that get planned. The value also comes from the time you get to spend doing other things, instead of going down internet rabbit holes trying to plan a vacation. Your time is very valuable…and so is mine.

Because in addition to spending time planning the nuts and bolts of your trip, I’m also doing research on your behalf—maybe I’m finding gluten-free dining options for you because you have a sensitivity, or perhaps I’m creating a Google Map of the shops I think you’ll like in your destination. Whatever it is, I’m working to make sure your experience is tailored to fit your needs and preferences.

I’m also spending time learning about destinations, hotels and resorts, tours and activities so that I can make the best, up-to-date recommendations to my clients. I am talking with colleagues and hearing about their experiences with different suppliers. I am meeting with suppliers and gaining insight into the special perks and experiences they can offer, and which you cannot get on your own. I’m always on the lookout for things I think my clients will love.

None of those things pays commission, but all of them allow for me to provide better service for you. That, after all, is what I am here for.

Get in touch if you have any questions, or if you’re ready to start planning your next adventure!