Ask-An-Advisor: Can I Be Selective and Not Charge Some Clients Fees?

This is 2024’s first edition of TMR’s Ask an Advisor series, a regular column where a team of travel advisors tackles questions from others in the industry. All questions from this series have been submitted by TMR readers and vetted by the TMR editorial team. The first 2024 question comes from a relatively new advisor with questions about charging fees.  

Dear Ask-an-Advisor, 
I began my career in January 2022. For the first 2 years I felt I was still learning and chose to not charge research/planning fees. I am planning to begin charging fees soon and have put that disclaimer on all my invoices, etc. to let people know it’s coming.

I would like to be able to be selective and NOT charge those who have been loyal to me and actually book their trips with me AND I want to let new clients know that the charge will be there (at least the first time). Is what I’m proposing doable? Or, do I just charge everyone the same and hope those that have been loyal stay loyal. 

HELP! I’m scared.

Melinda Fortunato, Owner, Best Travel 
Congratulations on charging fees! The most important thing is to find a system that works for you and your business model. You may have to tweak your system as you go which is completely fine and normal.

You can absolutely charge different fees to different clients.  Some advisors have a fee menu that is presented to clients with different levels of fees based on the service. Others base the amount on the client, how complicated and/or long the trip is, how complicated the client is. You can make this decision during the qualifying call as you gather information.

Some important things below to remember about charging fees may make it easier to charge ALL your clients, even your loyal clients.
1. You are charging for your time, expertise and connections in the industry.
2. You are charging to vet your potential clients to ensure they are serious travelers and not someone who had a fun idea one day and called you. If you charge a fee, they will seriously consider whether they want to take this vacation. Otherwise, you start working, and they may move on to the next fun idea. 
3. You are charging to ensure they are serious travelers because you don’t want to waste your travel partner’s time. Relationships with travel partners, tour operators, DMCs, cruise lines, hotels, are just as important as relationships with clients. When you vet your clients well, you are proving to your partners that you value their time by only bringing them serious travelers.
4. You are charging because life happens to even your loyal clients when they have to change or cancel their trip. Your loyal clients understand your value, and they don’t want to waste your time.
5. You are charging because consistency in workflow is important. While the amount of the fee can change, the process of charging fees should be consistent. 
6. You are charging because your fees will boost your income significantly. There are many goals to running a business and one of the most important is to earn a living.  

The more you do it, the easier it is. You will learn to love when someone walks away because they don’t want to pay your fee. This means you have more time to spend on loyal clients that value you. You got this!

Melinda Fortunato is a passionate travel advisor in the Washington DC area with over 10 years of experience and a lifetime of travel experience as a military wife and child. She is the owner of Best Travel, a luxury travel agency that provides high touch service and custom travel planning. Melinda actively advocates for the travel advisor industry as a Champion for Women of Travel Leaders, ASTA Mentorship Committee member, Nexion Advisory Board and Past President of the ASTA Central Atlantic Chapter. 

Angela Hughes, CEO, Trips & Ships Luxury Travel
Introducing service fees when you haven’t charged them in the past can be challenging but is often necessary for the growth and sustainability of your business. Here’s a strategic approach to implementing this change:

Understand the Value You Provide: Clients are buying you! Identify your unique selling points, such as specialized knowledge, personalized services, or exclusive access to experiences. Quantify your expertise by calculating the time and effort you spend on research, planning, and booking to showcase the value you bring to clients. Research industry standards to see what successful travel advisors are charging for similar services to establish a baseline for your fees.

Be Transparent: Clearly outline what each fee includes to manage client expectations.

Determine Your Fee Structure: Set competitive fees based on your research and the value you provide. Establish fees that reflect your worthwhile remaining competitive.

Communicate the Change to Your Clients: Explain why you’re introducing service fees and the benefits they receive. Focus on the enhanced value and personalized service they’ll get. Implement the fees with a contract or agreement to ensure clarity and avoid misunderstandings.

Easing Past Clients into the New Model: 
–    Phased Introduction: For existing clients, consider a phased approach. For example, you could start by charging fees for complex or high-value services first.
–    Offer Added Value: Enhance your service offerings with additional perks, such as exclusive insights or faster response times, to justify the new fees.
–    Leverage Relationships: Occasionally with past clients or new clients, you can let them know that you are waiving the fee to leverage the relationship.

Angela Hughes, CEO of Trips & Ships Luxury Travel and Luxury Travel University, is a trailblazer in the luxury travel industry. She leads a talented team of advisors, curating bespoke, high-end travel experiences that exceed client expectations. Angela’s passion for travel and education is evident in her work with Luxury Travel University, where she empowers professionals with the skills and knowledge needed to thrive in the luxury travel market.  

Jennifer Doncsecz, CTIE, President, VIP Vacations Inc
This is absolutely doable, and you can also position yourself as giving those loyal, repeat clients an added perk for returning to you!
I would suggest you advise the clients that you want to waive the planning fee for that you have.

This will also let those repeat clients know that if they have you price options and put proposals together and decide not to book, a fee will be in place the next time.

I would also suggest that you briefly explain to your repeat clients that you are being very selective with who you work with so you can provide exceptional service and research the best package possible for your valued clients. You want to ensure that you are working with the right people who value what you provide.

If you make those repeat clients feel special (by waiving or reducing the fee) but also reiterate what you bring to the table and why you have implemented a fee, hopefully, they respect your time and not have you spin your wheels and not book with you.

Additionally, you could also let those loyal clients know that should they refer any new client to you, who mentions their name as a referrer, you would be happy to reduce the planning fee for them too because you do value referrals and know how important it is to have friends and family use an experienced advisor!

Jennifer is a nationally recognized travel expert. As president of VIP Vacations Inc., Jennifer has distinguished herself as one of the top travel agents in America. Having received numerous industry awards, Jennifer uses her position to educate consumers as well as travel professionals on how to create amazing memories through travel.