Charging Fees: One Agency’s Success Story

Travel agents should take on the mindset of lawyers, accountants and other professionals and start charging fees.

That’s the philosophy of Terri Jo Lennox, CTC, owner of Travel Time in Calgary, Alberta. Lennox, who oversees a staff of some two dozen agents in three locations, has worked hard to develop a system that makes sense for agents and clients.

“Similar to an accountant or a lawyer, we have a broad sense of what fees to charge. But we don’t have a set structure,” said Lennox.

Case by case
Travel Time assesses each client and trip individually. For example, the agency might charge fees of $40 to $100 (Canadian) for air tickets, depending on the type of ticket or how much research is involved. [Editor’s note: All examples are in Canadian dollars.]

Lennox’s staff excels at customized FITs that include multiple suppliers. One example: river cruises with pre- or post-cruise stays. For these, fees can range from $150 to $500, or even up to $750 if it involves a large group with complicated arrangements.

“Suppliers pay us commission for putting the product in front of the client,” Lennox said.

“We also print documents, do the online registrations and other services that suppliers used to do. And clients are paying a professional fee for the services we provide them.”

Finesse is key
Introducing the concept of an agent fee to clients can be a delicate matter, Lennox said.

“It’s not the first thing we mention when we first make contact with the client. That would be too negative,” she said.

In training her staff, Lennox uses the image of a lawyer, accountant or doctor’s first interview or consultation.

“It’s important to first get to know the client. Ask where they last traveled, what hotels do they like. You can really understand them by chatting for 10 to 20 minutes,” she said.

Providing options
After the initial interview, Lennox gets back to prospective clients with a few travel options. She includes flights, transfers, accommodations, travel insurance and extras such as dining reservations or theater tickets.

“I explain that the quote is the best price available using preferred suppliers. I also say that the fee for research, issuing tickets, monitoring travel before, during and after the trip, will be approximately so much,” said Lennox.

It’s important to always mention fees prior to giving the client the overall trip quote, she added. At that point clients can say they’re not interested in proceeding.

But that doesn’t happen often, according to Lennox.

Confidence is crucial
Lennox finds that an agent’s comfort level with charging fees varies according to his or her seniority. She said younger, more junior agents still struggle with it a bit.

“I spend a great deal of time training them to understand that we’re professionals. We have this knowledge, training and expertise. We have the firsthand information that the clients want,” said Lennox.

Even agents who have joined her team after a decade or more with other agencies are ramping up their game.

Professional vs. order-taker
“When you put yourself out there as a professional, instead of a mere order-taker, you exude confidence,” Lennox said. “But you have to constantly build upon that professionalism.

“We’ve put a huge emphasis on training, site visits, fams and other types of agent education.”

The fee model is working for Travel Time. Fees now account for approximately 22% of the agency’s total revenue.

“In the past year and a half, with our fee structure in place we’ve had more referrals than ever. People know what they’re getting when they call us,” said Lennox.