Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Marilee Crocker
    • Paul M. Ruden
    • Dori Saltzman
    • Kelly Fontenelle
xantera

More on Service Fees: What States Have Different Requirements and How to Collect

by Daniel McCarthy / August 28, 2020
More on Service Fees: What States Have Different Requirements and How to Collect

What a state might legally require an advisor to have in place before charging fees and what to use to actually collect the fee from your client. Photo: Shutterstock


Whatever you call them—service fees, professional fees, a retainer—fees have moved to the forefront of the conversation within the travel advisor community, perhaps more now than at any time before.

With commissions harder to come by, and bookings still on hold because of the impact of COVID-19, more and more advisors are looking to fees as a business strategy necessary for the new world.

Attendees of ASTA Global Live this week were able to get the facts about fees during a session called Professional Service Fees and Additional Agency Revenue Opportunities. The session, hosted by TMR’s Daniel McCarthy, featured Rick Ardis of Ardis Travel; Bill Coyle of KHM Travel Group; Betsy Geiser of Uniglobe Travel Center; Tiffany Hines of Global Escapes; and Heather Kindred of Travel Leaders of Tomorrow.

Aside from the reasons why fees now make sense for a lot of agencies, and tips about how to break the news to clients of the new service charge, the session also covered important topics that may have previously given advisors some pause about fees—mainly, what a state might legally require an advisor to have in place before charging fees and what to use to actually collect the fee from your client.

What states have different requirements
“There are currently six states that require a seller of travel license,” Kindred said.

If you live in, or sell to, clients in California, Florida, Washington, Delaware, Iowa, and Hawaii, collecting money for travel requires a seller of travel license that you must obtain before you’ll be able to start including fees.

According to Kindred, California is the strictest, though there are exemptions including if your host agency has a California seller of travel license, and you run all transactions through them and their point of sale system.

“Keep in mind, states change their policies so do your research,” she said.

Advisors from those six states need to learn the restrictions from their state, get a seller of travel license (SOT), and get a point of sale app (more on that below).

Florida, for instance, requires advisors to register annually with the Florida Department of Agriculture and Consumer Services (FDACS), which is authorized to collect registration fees and impose penalties for noncompliance with the law. The annual fees for the Florida SOT license is $300.

California, on the other hand, requires an annual registration fee of $100 for each business location, paid through an online application located on the state’s Office of Attorney General website.

What to use to collect your fees
One of the most common questions with new advisors looking into fees is how to collect them from clients.

ASTA member and partner National Transaction Corporation is one available product, but there are others that advisors might be more familiar with in their daily life including Paypal, Square, and Stripe.

There’s also your local bank, Kindred said, which may have a payment processing application you’ll be able to start using that’s already linked to your back account.

  71
  0
xantera
Related Articles
Attorney Turned Agent: 'Professionals Charge for Their Time'
Washington-State Agency Generates 40% of Gross Income From Fees
Agent Uses Fees to Promote Expertise, Dispense With 'Brain Pickers'
Clients Ready for Service Fees, Are You?

MOST VIEWED

Brought To You By
  1. Princess Cruises Forced to Adjust Alaska Sailings After White Pass Rail Road Decision
  2. River Cruise Lines Prepare to Deal with Low Water Levels on the Rhine
  3. Updated Cruise Line COVID-19 Vaccination, Booster, & Testing Requirements
  4. Water Levels on the Rhine Are Expected to Reach Critical Levels This Week
  5. Here Is Some of the New CDC Guidance on Cruise Ship Travel
  6. Southwest Airlines’ Flight Credits Will No Longer Expire

MOST EMAILED

Brought To You By
  1. River Cruise Lines Prepare to Deal with Low Water Levels on the Rhine
  2. Updated Cruise Line COVID-19 Vaccination, Booster, & Testing Requirements
  3. Canada Will Restart Random COVID-19 Testing at Airports Next Week
  4. Southwest Airlines’ Flight Credits Will No Longer Expire
  5. U.S. Passport Wait Time Is Now 8 to 11 Weeks for ‘Routine Service’
  6. Viking Cruises' New Octantis Is So Much More than Just a Cruise Ship
TMR THIS WEEK
Sponsored by Intrepid Travel
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=9909dea1-a71c-ed11-b00b-005056a8720b&Width=350&Height&250

Antarctica: Truly Beyond

For advisors who do not regularly book this type of travel, it might seem like an intimidating task. But with the right training and support, any advisor can become a polar travel specialist. 

Read More...
xantera
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

TMR Recommendations
Daniel Zim
Zim Travel Law, PLLC. Demystifying Complexity with Down to Earth Advice. Attorney Advertising.
hbar
Rodney Gould
Rodney E. Gould concentrates in travel and tour-operator litigation and regularly counsels travel-related entities worldwide.
hbar
Tom Carpenter
Carpenter Law Office - Representing clients in the travel and tourism industries. Attorney Advertising.
hbar
Top Stories
New DOT Rulemaking Goes Off the Rails on Refunds
New DOT Rulemaking Goes Off the Rails on Refunds

"In my long career dealing with the regulatory side of the travel industry, I have never seen anything quite like the latest proposed regulations from the DOT regarding ticket refunds."

Read...
What’s Trending in Consumer Media: Wedding Registries, Retirees Take Travel Jobs, & More
What’s Trending in Consumer Media: Wedding Registries, Retirees Take Travel Jobs, & More

Here are five stories to keep travel advisors informed and entertained for August.  

Read...
What’s Holding Some Suppliers Back from Advance Commission Payments?
What’s Holding Some Suppliers Back from Advance Commission Payments?

There are valid reasons holding many suppliers back from offering pre-travel commission payments. 

Read...
Why Some Suppliers Have Responded to Calls for Commission Timeline Changes
Why Some Suppliers Have Responded to Calls for Commission Timeline Changes

Why some suppliers made the decision to offer advance commission payments and how they're doing it. 

Read...
International Medical Group Adds Device Protection to Insurance Plans
International Medical Group Adds Device Protection to Insurance Plans

Advisors can help their clients protect their mobile devices while traveling with an add-on from IMG. 

Read...
Why Shoulder Season Is the Next Big Travel Trend
Why Shoulder Season Is the Next Big Travel Trend

Travelers have traditionally sought out the shoulder and off-peak seasons to snag the best deals. 

Read...
TMR OUTLOOKS & WHITE PAPERS
lux cruise outlook
CP White Paper
Multi-Gen Outlook
Distribution Outlook (1)
New to Cruise Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/U6CJNU-CRPQ/0.jpg
MasterAdvisor 56: How Travel Advisors Can Use Instagram Reels
About Travel Market Report Mission Editorial Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News|Leisure Travel|Land Vacations|Cruise|Canada Retail Strategies|Well-Being|Luxury|Training
© 2005 - 2022 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy