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Service fees becoming the norm
More than half of UK travel agents now charge a booking fee, according to a recent survey.
The widespread introduction of service fees, adopted by 64% of agents responding to a recent survey, is down to the gradual eradication of airline commissions according to Amadeus, which conducted the survey.
According to ABTA the average service fee charged by agents is £15, but the organisation warns agents they must prove value-add to justify the fee. An ABTA spokeswoman told TravelMole: “Agents have the unique selling point of offering a face to face personal service. As there is so much competition within the travel industry, agents must be able to prove that they offer a thoroughly professional service that makes customers want to go back for more.”
Amadeus claims that agents responding to its survey have found success with service fees, and of those adopting the fees, two thirds have since raised fees since introduction.
Amadeus agrees with ABTA that the key for agents wanting to introduce a service fee is demonstrating value-add, which for leisure agents means offering options such as holding bookings as well as developing closer relationships with loyal customers. For business travel agents it means offering improved service such as reporting of company travel spend.
In a bid to boost revenues in a post-commission environment, agents are also selling more non-air products, says Amadeus. Hotels were seen by 87.5% of agents as the product to most actively sell, while 33% said cruises were a priority.
Report by Ginny McGrath
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