typical travel agent fees

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Table of Contents

How much does a travel agent cost?

Do travel agents get discounts on flights, how can a travel agent help me, smart money move: book with the right credit card, how do i find a good travel agent.

With a few keystrokes, you can find cheap travel deals on the web. But travel agents can do that and more.

Often, travel agents receive deals directly from hotels and tour operators that you may not have access to. They also have contacts with resorts and hotels, so they can bargain for better deals. But just how much do travel agents cost? Some people assume that travel agents are expensive, which may keep them from using their services. However, that's not necessarily true.

Regardless if you go with a travel agent or plan on your own, it can be a smart money move to book with a credit card thats earns rewards on your bookings and helps you avoid foreign transaction fees if you end up traveling abroad.

The cost of using a travel agent is generally marginal, and often, they won't charge you at all. Much of their money comes from commissions the hotels and wholesalers pay them. Before you decide to book with a travel agent, inquire whether or not they charge fees.

Also, if you’ve booked a trip with a travel agent and for whatever reason need to cancel, they might be able to help get the refund more directly.

» Learn more: How to become a travel agent

Generally not, and especially not for short distances. For the most part, any discount you'd get from using a travel agent would be for a combined package. Still, it never hurts to ask if your travel agent can get you a deal on your flight.

If you're traveling internationally — especially to a country you've never visited — a travel agent can be a useful resource in helping you plan your trip. They can manage all of your booking needs, which can be easier than juggling a long itinerary that includes flights, hotels and excursions on your own.

Group travel is another common situation that can benefit from an agent's assistance. Coordinating bookings across multiple parties can get confusing. A travel agent can keep things organized, negotiate with services and personally work out any complications that may arise. Rather than trying to reserve rooms in the same hotels and seats on the same flights with multiple credit cards and names, let a travel agent do that work.

Travel agents can also be helpful by providing destination advice. Many specialize in particular destinations and can offer insight as to how you should structure your visit. Agents can direct you to the services, facilities and entertainment that best align with your interests and needs.

» Learn more: Other things a travel agent can do that a search engine can't

Whether you decide to use a travel agent to book your trip (i.e. flights, accommodations, excursions, cruises, car rentals, etc.) or plan the whole trip on your own, consider what credit card makes the most sense for your vacation.

If you're going abroad, use a card that waives foreign transaction fees so that you can avoid those fees. Also consider credit cards that include complimentary travel insurance so that you can be protected on your trip if things go awry.

Here is a sampling of cards that include travel insurance and also waive foreign transaction fees. These cards also earn rewards on travel, which you can redeem in various ways.

on Chase's website

on American Express' website

• 5 points per $1 on travel booked through Chase.

• 3 points per $1 on dining (including eligible delivery services and takeout), select streaming services and online grocery purchases (not including Target, Walmart and wholesale clubs).

• 2 points per $1 on other travel.

• 1 point per $1 on other purchases.

• 10 points per $1 on Chase Dining, hotel stays and car rentals purchased through Chase.

• 5 points per $1 on air travel purchased through Chase.

• 3 points per $1 on other travel and dining not booked with Chase.

• 5 points per $1 on flights booked directly with airlines or with American Express Travel, on up to $500,000 spent per year.

• 5 points per $1 on prepaid hotels booked with American Express Travel.

• 1 point per $1 on other eligible purchases.

Terms apply.

• Trip delay: Up to $500 per ticket for delays more than 12 hours.

• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

• Travel accident: Up to $500,000.

• Rental car insurance: Up to $75,000.

• Trip delay: Up to $500 per ticket for delays more than 6 hours.

• Travel accident: Up to $1 million.

• Rental car insurance: Up to the actual cash value of the car.

• Trip delay: Up to $500 per trip for delays more than 6 hours.

• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

The cards listed above all carry annual fees, especially given all the perks they provide.

If you don't care about the perks listed and simply want a card with no annual fee that waives foreign transaction fees, check out this list of options .

Several websites can help you track down and contact suitable travel agents. TravelSense.org , part of the American Society of Travel Advisors, allows you to search by some useful parameters including specialty and geographic location.

Insurance Benefit: Trip Delay Insurance

Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period.

Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

Please visit americanexpress.com/benefitsguide for more details.

Underwritten by New Hampshire Insurance Company, an AIG Company.

Insurance Benefit: Trip Cancellation and Interruption Insurance

The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

75,000 Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

1.5%-5% Enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Up to $300 Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

on Capital One's website

2x-5x Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

75,000 Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

Understanding travel agency fees: the essential guide

Whether you're planning a business or leisure trip, you might want to save time by using a travel agency. The concept of a tour operator is simple: buy holidays in bulk and for less. This solution often saves you a lot of money, but it's essential to take travel agency fees into account. Here's what they include!

What are the travel agency fees?

Travel agency fees cover part of the administrative costs involved in booking and managing your trip. These may include flight searches, accommodation reservations, train or plane tickets, transfer coordination, etc. 

Not all travel agencies charge handling fees, but the vast majority do. When you're planning a trip with a travel agency, we advise you to find out about any fees beforehand. This should be done right from the start of the process, so that you clearly understand the costs associated with their services, and avoid unpleasant surprises at the final settlement!

To give you an idea, here's an overview of what a travel agency's handling fee includes.

Consulting fees

First of all, travel agencies may charge a consulting fee for the time spent talking with you, understanding your needs, your preferences in terms of destinations, airlines and type of accommodation, and developing a customized itinerary. Consulting fees also include planning fees, covering the time and effort invested by the agency in designing a trip tailored to your specific needs.

Service, management and transaction fees

Service fees refer to reservations for airfare, accommodations, car rentals, as well as certain travel-related activities. Travel agents coordinate the various elements of the trip to ensure that everything is synchronized, such as flight schedules and hotel reservations. Typically, transaction fees are charged as a percentage of each reservation, modification or cancellation on your behalf.

Service and management fees can also include administrative costs, linked to the agency's general administrative costs, such as the maintenance of reservation systems, personnel, office expenses, etc.

Assistance costs

The advantage of using a travel agency is that they often offer 24/7 assistance throughout the planning stage, as well as ongoing assistance during the trip in case of problems or unforeseen situations.

Insurance costs

Going through a travel agency sometimes involves extra charges for travel insurance, either included or optional. This offers protection to travelers in the event of unforeseen circumstances. Travel insurance costs cover various aspects:

• trip cancellation due to unforeseen circumstances such as illness, accident or death of a family member;
• trip interruption for medical emergencies or unexpected events ;
• medical insurance to cover emergency medical expenses abroad, including hospitalization;
• baggage insurance guaranteeing reimbursement in the event of loss, theft or damage to baggage during the trip;
• third-party liability covering damage caused to third parties during the trip.

Insurance costs in France may vary according to the coverage chosen by the agency and the duration of the trip. Find out which travel insurances are best for you , and contact your bank. You may already have adequate travel insurance with your bank card!

Booking through a travel agency: is it more expensive?

If you're thinking of entrusting your travel project to an agency, you're probably wondering: will I pay more? Because if the travel agency is working on my trip, there are bound to be costs!

The answer is no, it won't cost you more. On the contrary, it often saves you money! Whether it's for low-cost or first-class air tickets, accommodation, activities or tours, the travel agency negotiates contracts with various brands and companies at the best price, and obtains exclusive promotions. 

So, if you use a travel agency, the chances are that the price of your holiday will be lower than if you booked directly with each service provider. In many cases, travel agencies can help you save money. The only thing to bear in mind is the booking fee, which varies from one agency to another, depending on the services offered.

What percentage does a travel agency take?

Most travel agencies take between 9% and 15% commission for anything to do with services, stays or tours. For a single airline ticket sold, a travel agency might take 8% of the public price.

However, this percentage varies from one travel agency to another, depending on the services they offer. Some travel agencies may charge between 15% and 20% commission. Make sure you find out what the fees are before embarking on your adventure with a travel agency, and above all, use an agency that is transparent about them!

Why use a travel agency?

The first advantage of using a travel agency is that it saves you time . Travel agents can take care of your trip from A to Z. If you've ever planned a trip, you know how complex and time-consuming it can be. Travel agents take care of planning, hotel reservations, flights, transfers and other details that save you time and energy.

Travel agents are experts in their field and can provide you with useful advice on destinations, the best times to go there, activities to do, and so on. Their in-depth knowledge can help you plan a trip perfectly suited to your needs and preferences.

Then, the second big advantage is that they give you access to preferential rates and exclusive offers, having negotiated with their partners. This means you'll get better deals than if you booked with each provider yourself.

Finally, when you use a travel agency, you often benefit from assistance in the event of a problem (flight delays, cancellations or accommodation problems, etc.). This takes the stress out of your trip, and allows you to quickly resolve any unforeseen situations with a single point of contact!

What's the difference between a travel agent and a travel agency?

A travel agent is someone who works for a travel agency, or who works independently. They help you plan your trip, book flights and hotels, and advise you on visas, travel insurance and tourist activities.

A travel agency is a commercial enterprise that composes and sells a range of travel-related services. It is made up of one or more travel agents.

There is no better option between the two, it all depends on the quality of the services provided by the agency and the independent travel agent, and of course, the prices of the trips offered and the handling fees!

Travel agencies are required to provide a financial guarantee to ensure that travelers are reimbursed in certain situations, such as trip cancellation, non-performance of scheduled services or even bankruptcy of the agency itself. The aim is that, should something go wrong, you're protected from A to Z.

Today, the majority of companies work with a travel agency to plan their business trips, and find it a real added value in terms of travel management. 

To help office managers, we've developed Fairfees , which compares your travel costs across different agencies. This easy-to-use simulator will help you choose the travel agency best suited to your needs.

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How Much Does a Travel Agent Cost?

Travel agents and travel agencies partner with airlines, cruise lines, hotels and resorts to provide travelers with the best deals possible.  If you don’t know where to look when it comes to booking a vacation or you simply don’t have the time, a travel agent can put together the itinerary you’re envisioning for a low cost.

How much does a travel agent cost?

On average, plan on spending around $30 to $50 per person for a travel agent to help you book a ticket for an airline, train or cruise.  However, if the travel agent has to put together a customized vacation package for your family, the costs can be between $150 and $350, depending on the complexity of the vacation and the number of people they are booking for.  There are also many other extra fees that you should be prepared to pay if you were to change anything in the future.

Researching a vacation can cost $25 to $100 per hour if you didn’t know exactly what you wanted yet.

Many travel agents charge flat rates per ticket or for custom trip packages, similar to the quotes specified in our table below, while others may charge a certain percentage of the trip’s value. When there are changes or cancellations, travel agents may charge a second fee on top of the fee already charged. Additionally, travel agents may charge customers for booking fees, hotel fees, car rental fees, change fees, and cancellation fees, among others.

We researched the average prices a travel agent often charges and included our findings inside the table below:

NOTE:  This is just an average and the costs can vary from one travel agent to the next.

Virtuoso, a popular luxury travel advisor, for example, supposedly charges around $150 per person .

According to a CNN.com article , travel agents charge an average flat fee of $35 to purchase an airline ticket or a “plan to go” fee of $250 to prepare an individualized travel package.  More experienced agents charge an hourly fee for tailored packages, while some agents charge an annual retainer to customers who want services delivered at their disposal.

An article at DailyFinance.com, states the average travel agent charges around $35 for airline services.

Tips to know:

A travel agent can do anything from booking an airline ticket on a specific date to planning an entire vacation, from the hotel to the daily activities.  Essentially, a travel agent is a paid planner who makes your vacation become a reality without the hassles of doing it on your own.

Travel agent fees generally depend on the agent.  You can always ask an agent up front what his or her fees are and what they will cover.  As long as you know what you want, they should be able to provide you with an estimate.  It is important to be aware early on what the potential costs will be, and it doesn’t hurt to get it in writing.

While travel agents have access to the same outlets that consumers use when booking trips, some agents have access to exclusive pricing and package deals that are not always available to the public.  Agents also have more clout in sorting out situations such as hotels that claim to be fully booked, when in fact, they have rooms available for travel agent reservations.  It never hurts to talk to a travel agent, even though it may seem “old fashioned.”

Travel agents are ideal for those who do not know where they are traveling, booking large groups or going overseas.

TravelSense.org has a helpful search engine that allows you to find a travel agent who’s a member of the ASTA and adheres to a strict Code of Ethics.  Here, you can search by areas of expertise, specialties, languages and so much more.

A lot of travel agents work on commission, so, unfortunately, they may only recommend the hotels or airlines they receive a kickback from.

How can I save money?

When only booking a flight, it is not necessary to hire the services of a travel agent.  Discount flight sites are easily available and you book a flight yourself at about the same price.  For example, many find that it is cheaper to book through major sites such as Expedia.com .

A travel agent won’t always find you the best price.  If you’re simply booking a hotel or car, use a comparison price tool, but don’t book just yet; instead, book directly to save the most money with the lowest price you found on the comparison website.  Most of the time, if you were to use a travel agent, the only time it makes sense is when you’re booking for a group or a long vacation where you require the car, hotel, airfare and activities.

If you have a travel credit card, be sure to use it when booking your vacation to maximize your reward points.

If you are a member of AAA, they provide free travel services you can take advantage of.

Staying flexible with your future vacation can help cut the costs.

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I actually just went on a cruise, and sure, while you can find the information online, I was able to have a much easier time with my local travel agent. She didn’t charge me and by the looks of it, she saved me up to $100 per person. So for those who are contemplating if they should use one, I say DO IT!

I just used a local travel agent to book my family to Punta Cana. She helped work through all the resorts so we found exactly what we were looking for. Her service was completely free and the price was lower than on online company. She also said that now days travel agents can match the prices of any online company!

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Complete Guide to Travel Agent Commissions

by Core Commissions | Feb 16, 2023

According to research by  Statista , as recently as 2022, the travel industry was reported to be worth as much as two trillion dollars. It is one of the  largest industries  in the world based on employment, with an average growth of 12% over the past five years specifically among travel agents. 

Travel agents earnings are made up of a mix of salary, commission, and other incentives. Their pay can fluctuate significantly month to month or even annually. Different destinations, seasons, suppliers, affiliates, or even how the booking is made, all factor into the percentage of commission that an agent takes home. All of these variables make the process for calculating and managing commissions for agents ever-changing and very complicated.

Similar to other commission-based industries such as  insurance  and  finance , an agent’s pay will vary depending on whether they are employed by an agency or if they are self-employed. Typically, agents employed by an agency have a  salary and receive commissions and incentive pay  as an additional source of income. Whereas, a self-employed agent is not paid a salary and is  only paid commissions  earned from suppliers and fees paid by customers.

Core Commissions is a leader in sales compensation software. Founded in 2005, Core Commissions provides an affordable web-based commission management solution that automates the calculation of complex sales commission and incentive pay plans. Core’s powerful and robust application is capable of managing complex data relationships and commission rule scenarios while providing an intuitive online portal for salespeople to view their pay statements and performance dashboards.

In this guide, we’ll cover vocabulary, types of commissions, commissionable revenue, and commission payment schedules that are common for US-based travel agents. 

Travel Agent Vocabulary

Supplier: The vendor or business that provides travel services. Suppliers could be airlines, hotels, rental car companies, tour guides, cruise lines, etc.  

Host Agency: Many independent agents may prefer to work under the umbrella of a larger organization to earn higher commissions and benefit from better contracts, relations, and marketing assets. These organizations are referred to as host agencies.

Accreditation Number: The identification number that suppliers use to keep track of sales made by each agency is known as the accreditation number. Suppliers group all bookings made under the same accreditation number together, meaning that host agencies, or agencies with multiple reps, can more easily generate enough sales to place them into higher commission tiers.

Non-Commissionable Fees (NCF): There are some aspects to the cost of travel that are not commissionable, meaning agents cannot accrue any commissions from them. Non-commissionable fees typically include any services fees and taxes added on to a booking, though there are some cases where both fees and taxes can be fair game for commissions.

Types of Commissions for Travel Agents

There are three main commission types for travel agents: flat commission rates, tiered commission rates, and airline commissions.

Flat commission rates

With flat rate commissions, every travel agent gets the same commission rate no matter how much they book. Flat commission rates are standard and predictable.

Tiered Commission Rates

For larger suppliers, they may utilize a commission tier structure as a way to incentivize agents to book more with them. Suppliers may base their tiers off of two variables: annual sales revenue or passenger count. In either case, the supplier establishes a commission structure that rewards agents or agencies who meet certain thresholds. Once an agent reaches a threshold, they receive a higher commission rate.

How many levels each supplier includes in their tier structure can vary, but generally they have three to four tiers for agents to reach. As mentioned above, suppliers keep track of all bookings made by agents through use of an accreditation number.

Annual Sales Revenue: In most cases, suppliers opt to build their commission tiers around overall sales volume achieved by an agent or agency. Once a certain threshold for annual sales is met, an agent’s commission rate increases.

Passenger Count: Alternatively, some vendors may choose to use passenger count as a way of structuring their commission. This can be a common route for suppliers such as cruise lines as they have several vacancies to fill on each cruise.

Either way, agencies have an advantage with tiered commissions because they have multiple agents working under the same accreditation number, all of whom will benefit from the commission rate increase. Because of this, they are able to reach the tiers with higher commission rates quicker and easier.

Airline Commissions

Airline commissions are unique from flat rate commissions and tiered commissions because they vary completely based on the contract that is negotiated with each agency. Agencies with better contracts earn a higher percentage rate. Even with a well-negotiated contract, an agent’s compensation will be impacted by domestic vs. international flights, city pairings (where they are flying to and from), class of service, the carrier, and the time of year.

Not all airlines pay commissions to travel agents, but airlines that do will have their own policies and commission rates. For specific commission rates, you will need to inquire with each individual airline. 

Commissionable Revenue for Travel Agents

Almost any travel services booked by a travel agent can be eligible for commissions or other incentives, some examples include:

• Car Rentals
• Travel Insurance
• Service Fees
• Custom itineraries

Other Variables

Aside from the variables mentioned above, there are additional factors that contribute to how an agent gets compensated.

Commission Confidentiality: Many suppliers choose to keep their commission rates private. You will only learn the commission rate when you sign on with a host.

Net Commission vs Gross Commission: As mentioned above, for some aspects of travel, there are non-commissionable fees. This can play a role in whether the commission accrued for each agent is based on the gross cost of the booking or the net, which is gross less any taxes.

Phone vs. Online Bookings: In some cases, suppliers may base their commission percentages on how the booking is made. This won’t have a huge impact on the rate of commission paid out, but it can alter the rate a little bit.

Price Matches: Many suppliers will offer price matching for customers, which can result in a lower commission rate for agents.

Travel Type: Leisure and business involve different methods for planning and agents will earn different rates depending on the type of travel being arranged.

Travel Agent Commission Pay Schedule

Another complicating factor to travel agent commissions is the schedule in which they receive their incentive pay. Here are the two most common ways agents are compensated:

Payment upon booking: Agents will receive payments upfront when the client buys travel insurance, if the agency requires any type of deposit prior to planning, or when they submit their final bill to the customer. The fees incurred from completing bookings for the customer are received as incentive payments for the agent.

Payment after client has traveled: Suppliers will not usually issue payment to agents until the client has concluded their travel, which means that in most cases agents will go long periods before seeing their commission hit their paycheck.

Ensure Accurate Payments to Your Agents

There are a lot of moving pieces involved in managing sales compensation for travel agents and ensuring that the commissions received from suppliers are accurate with your records. Core’s customizable sales compensation solution has all of the tools you need to reconcile payments from suppliers, track commissions tiers, and accurately calculate your agents’ pay.

Single-button processing allows you to process commission cycles at any point once payment is received from your suppliers and our customized dashboards give you a real-time view into which suppliers are your biggest revenue generators.

Contact us or set up a free demo and we’ll show you how Core can automate the entire compensation process for your agency.

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Startup Costs

Let's Talk Travel Agency Fees

For what you get when you partner with us here at TPI as your travel host agency , you’d think you’d pay through the nose. The level of support alone is worth its weight in gold. For example, you’ll get access to the best travel agency marketing tools and techniques, as well as state-of-the-art travel agency software (including robust travel agency back office software technology). But we don’t believe in nickel and diming you. We believe you should keep more of your money. Technology, community, a fun, fresh vibe, exclusive supplier promotions, unparalleled marketing resources, and help 24/7 makes partnering with us the deal of the century.

Show Me the Money

Depending on your level of commitment to us, we estimate the basic startup costs to own your own travel agency include:

• Training: $295-$895
• Host Initiation Fee: $0
• Typical Business Startup Costs: $500
• Commitment to Us as Your Host Agency (Annually): $240-$840

For a grand total of anywhere between $1234 to $2074. That’s not a ton of money to start your own business and be your own boss. But do you have what it takes to be a travel agent though?

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Rockstar Success Stories

I started my career like many others, with big dreams and a passion for travel. I opened my business in 2010 as an independent agent — working on my own trying to take on the world. After finding a mentor in the industry, I was introduced to the idea of host agencies. I worked with several host agencies over the years, but joining TPI in 2012 was the best move for my business.

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Frequently Asked Questions

What is a typical travel agency fee.

Travel agency fees vary. We offer multiple commission split structures so you decide how much you pay in fees and how much of your commission you keep. For example, if you choose to take home less of your commission, your fees to TPI are lower.

What is a travel agency fee?

A travel agency fee is what you pay to work with a host agency like TPI. We determine our fees based on our commission split structures. If you choose to take home less of your earned commissions, your fees are lower, and vice versa.

Does it cost money to become a travel agent?

There are some fees associated with starting your own business. While you will pay for training and general business startup costs, the cost is generally low. Plus, you’re investing in your own business and your future as your own boss! Learn how to become a travel agent today.

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Charging Your Clients Travel Fees [Beginners Guide]

If you travel to provide services to your clients, there is a good chance you've considered implementing travel fees. In this article, we'll cover everything you need to know about travel fees and provide some actionable advice to ensure you're doing it right.

What is a travel fee?

A travel fee is an additional fee added to your standard pricing. Often, travel fees vary based on the distance one travels. The further one travels, the higher the travel fee. 

👉 Use a quality online booking system with travel fees built-in, like Check Cherry, so you can automatically calculate and charge clients travel fees. It saves a lot of time and ensures accurate billing.

Why do people charge travel fees?

If you package your services, there is a good chance you've factored some travel into your pricing. However, if a client needs you to drive 62 miles, your standard pricing may no longer be profitable. Travel fees allow you to service a larger geographic area by offering clients the option to compensate you for travel.

Should I charge travel fees?

If you're open to traveling further distances to work and leveraging packages to sell your services, you should charge travel fees because they will ensure you are operating profitably.

If you are unwilling to travel outside a smaller area or send proposals with custom pricing to each client, you might want to lump all costs into one price to ensure each booking is profitable.

👉 Travel fees give more people the opportunity to hire you because it expands the geographic area you are willing to serve.

Distance-Based Travel Fees

We often see our customers include a free travel range with all packages. For example, the first 30 miles are free, and if they must drive more than 30 miles, it's $2.00 per mile. Distance-based travel fees are outstanding because they are granular and account for time and fuel costs best.

Flat Rate Travel Fees Tiers

Some people like to charge a flat fee for travel. For example, one's travel fee structure might look like this:

0-25 miles - FREE

25-50 miles - $35 Flat Fee

50-100 miles - $125 Flat Fee

This option is much less popular. One positive aspect is you can make one tier meaningfully more expensive than another.

Round-trip or one-way?

The majority of Check Cherry customers charge one-way travel fees. If a wedding venue is 55 miles away, they charge a travel fee based on 55 miles (single trip). Another option is calculating based on the length of getting to and from the service address (round trip).

One-way calculations make it easier for the client to understand your fee structure because most clients will not think to double the distance. If you opt to charge on a one-way basis, consider increasing your per-mile fee to account for the trip back home.

On the other hand, the round trip calculation will make the per-mile fee appear lower than a single trip fee. This may be helpful during the initial sales process. Round-trip is also a more accurate representation of actual costs associated with you traveling on behalf of a client.

Should I just use the rates provided by the IRS?

Each year, the IRS releases Standard Mileage Rates . In 2022, the amount was 58.5 cents per mile. Check with the IRS or your tax professional each year and track mileage for any business purposes. Regardless if you charge travel fees or not, you can deduct the cost per mile that you travel for business. Talk to your accountant about how to do it right.

Remember that the number provided by the IRS each year is based on an annual study of the fixed and variable costs of operating an automobile. It's probably a mistake to charge clients based on rates set by the IRS.

How much should I charge my clients for mileage?

This answer will vary by market, service type, and ideal customer profile. Here are three factors to consider when calculating a travel fee:

Travel time

One of the more significant expenses is your time, and travel will effectively increase the time you need to dedicate to complete your service. If you have staff, you probably want to pay them for travel time to ensure they want to work a booking or event.

Gas prices are outrageous. Do a rough calculation to see what it goes to drive 15, 25, or 50 miles based on your fully-loaded vehicle.

Vehicle wear and tear

The more you drive a vehicle, the more it costs to own due to depreciation, interest on your loan, insurance premiums, maintenance, and repairs. Estimates can be as low as $0.21 per mile and more than $0.62 per mile. You can use this handy calculator to get an estimate for your vehicle.

Example Travel Fee Calculation

Here is an example of how one might estimate the true costs of travel.

Fuel - $0.206 per mile

Cost per gallon of fuel: $4.33

Miles per gallon of fuel: 21

Fuel cost per mile = $0.206 cents per mile ($4.33 / 21)

Wear & Tear - $0.66 per mile

5 Year Vehicle Wear and Tear = $49,515

Vehicle Wear and Tear Per Year = $ 9903 ($49,515/ 5)

Per Mile Wear and Tear = $0.66 ($9903 / 15,000 miles)

Staff Costs - $0.517 per mile

Distance to Venue: 38.7 Miles

Travel Time: 1 Hour

Hourly Rate: $20

Cost per mile = $0.517 ($20 / 38.7 miles)

Estimated Travel Fee

$1.38 per mile ($0.206 + $0.66 + $0.517)

Automatic Travel Fee Calculations

Watch how Check Cherry makes it easy to  calculate and charge travel fees . You can create multiple travel zones, limit bookings outside your service area, and more.

People will ❤️ how easy it is to book you online.

Try Check Cherry free for 14 days, no credit card required.

⭐⭐⭐⭐⭐ "I love it!"

"I found Check Cherry when doing a search for something to schedule mini sessions for my photography business. It's the perfect end to end online booking and payment solution. I has made my work so much easier, and its convenient for my clients to click to select their session, sign the contract, and pay. I love it! Not to mention, their customer service is on point. Quick response time and open to suggestions. Fantastic!"

Understanding The Norm: Do Travel Agents Typically Pay Monthly Fees?

• Last updated May 15, 2024
• Difficulty Advanced

• Category Travel

As the world of travel continues to evolve and adapt to the digital age, one may wonder if travel agents still exist, and if so, how do they make money? In particular, many people are curious about whether or not travel agents typically pay monthly fees in order to maintain their business. In this article, we will delve into the inner workings of the travel agent industry and explore the norms surrounding their financial obligations. So, buckle up and join us on a journey of understanding the norm when it comes to travel agents and monthly fees.

What You'll Learn

Understanding the concept of monthly fees for travel agents, factors contributing to travel agents paying monthly fees, pros and cons of travel agents paying monthly fees, alternatives to travel agents paying monthly fees.

Travel agents play a valuable role in the travel industry by helping individuals and groups plan their trips, book accommodations, and arrange transportation. While most travel agents earn a commission on the services they provide, some agencies also charge monthly fees to their agents. This concept of monthly fees can be confusing for both aspiring travel agents and travelers, so it's important to understand why these fees exist and what they entail.

First and foremost, it's important to note that not all travel agencies charge monthly fees to their agents. There are many agencies that operate on a commission-only model, where agents earn a percentage of the sales they generate. However, there are also agencies that require their agents to pay a monthly fee for various reasons. Let's dive into the concept of monthly fees for travel agents and what it means for both the agents and their clients.

One common reason why travel agencies charge monthly fees is to cover the cost of marketing and advertising. Travel agencies invest heavily in promoting their services, and these costs can add up quickly. By charging a monthly fee, agencies are able to offset some of these expenses and ensure that their agents have access to effective marketing resources. This allows agents to reach a wider audience and generate more sales, ultimately benefiting both the agency and the agents themselves.

Another reason for monthly fees is to provide ongoing support and training to travel agents. The travel industry is constantly evolving, with new destinations, travel trends, and technologies emerging all the time. In order to stay competitive and provide the best possible service, agents must stay up to date with the latest developments. Monthly fees can help agencies fund training programs, webinars, and other resources that keep their agents informed and knowledgeable. This ensures that agents are equipped to handle any questions or concerns from their clients and offer them the best travel options available.

It's also worth noting that monthly fees can vary greatly from one agency to another. Some agencies have a fixed monthly fee, while others use a tiered system based on the agent's sales volume. It's important for aspiring travel agents to carefully consider the fee structure of any agency they are considering joining to ensure that it aligns with their financial goals and expectations.

For travelers, the concept of travel agents paying monthly fees might be concerning. However, it's important to remember that these fees are not passed on to the clients directly. Travel agents earn their commission from the services they book for their clients, and this commission covers their expenses, including any monthly fees they might have to pay. Clients can still benefit from the expertise of a travel agent, without incurring any additional costs.

In conclusion, while not all travel agencies charge monthly fees to their agents, it is a common practice in the industry. These fees are often used to cover marketing and training expenses, allowing agents to provide better service to their clients. Aspiring travel agents should carefully consider the fee structure of any agency they are considering joining, while travelers can rest assured that these fees are not directly passed on to them. With a clear understanding of the concept of monthly fees for travel agents, both agents and clients can make informed decisions.

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It is not uncommon for travel agents to pay monthly fees as part of their business operations. There are several factors that contribute to this practice. In this blog post, we will discuss some of the main reasons why travel agents might be required to pay monthly fees and how they can benefit from this arrangement.

Access to booking systems and technology:

Travel agents need access to industry-specific booking systems and technology platforms to effectively serve their clients. These systems usually come with a cost, which is often passed on to the travel agent in the form of a monthly fee. These booking systems, such as Global Distribution Systems (GDS), are crucial for travel agents to efficiently search, compare, and book flights, accommodations, and other travel-related services. By paying a monthly fee, travel agents can ensure they have access to the latest technology and tools to provide their clients with the best possible service.

Marketing and advertising support:

Travel agents often rely on the support of their host agency or consortium to market and advertise their services. This support can include access to a shared marketing platform or resources, co-op advertising programs, and centralized marketing campaigns. In exchange for these services, travel agents may be required to pay a monthly fee to cover the costs associated with marketing and advertising efforts. This allows travel agents to benefit from professional marketing and advertising materials without having to bear the full cost themselves.

Administrative and operational support:

Running a travel agency involves various administrative and operational tasks, such as processing bookings, managing client accounts, and coordinating with suppliers. Some host agencies or consortia offer administrative and operational support to their travel agents, including access to back-office systems, accounting services, and customer relationship management tools. To cover the costs associated with providing these services, travel agents may be required to pay a monthly fee. This allows them to focus on serving their clients and growing their business, without having to worry about the day-to-day administrative tasks.

Training and education programs:

Continuing education and professional development are essential for travel agents to stay up-to-date with the latest industry trends, regulations, and best practices. Many host agencies and consortia offer training and education programs to their travel agents, including webinars, workshops, and online courses. These programs help travel agents improve their skills and knowledge, enabling them to better serve their clients. In order to access these training and education programs, travel agents may be required to pay a monthly fee to cover the costs associated with developing and delivering these resources.

Networking and collaboration opportunities:

Being part of a larger travel agency network or consortia provides travel agents with networking and collaboration opportunities. These networks often organize conferences, trade shows, and networking events where travel agents can connect with industry peers, suppliers, and potential clients. By paying a monthly fee to belong to these networks, travel agents can benefit from the connections and collaborations that arise from these events. This can help them expand their client base, gain valuable industry insights, and stay informed about the latest trends and developments.

In conclusion, travel agents may be required to pay monthly fees for various reasons, including access to booking systems and technology, marketing and advertising support, administrative and operational support, training and education programs, and networking and collaboration opportunities. These fees enable travel agents to access valuable resources and services that can enhance their business operations and improve their ability to serve their clients. By carefully evaluating the benefits and costs associated with these fees, travel agents can make informed decisions and choose the arrangements that best meet their needs and goals.

Exploring the South: Traveling from Chicago to Florida

Travel agents are professionals who assist individuals, families, and groups in planning and booking their travel arrangements. They often work for travel agencies that offer various services and benefits to both clients and agents themselves. One aspect that some travel agents may encounter is the requirement to pay monthly fees to maintain their membership or affiliation with a particular travel agency. While this practice is not universal, it does exist in certain cases. In this article, we will outline the pros and cons of travel agents paying monthly fees.

• Access to Exclusive Benefits: Some travel agencies provide additional benefits and resources to their agents who pay monthly fees. These benefits may include access to exclusive discounts, special offers, training programs, marketing materials, and a dedicated support team. By paying the fees, travel agents can take advantage of these additional resources to enhance their services and improve their client satisfaction.
• Enhanced Professional Development: Many travel agencies who charge monthly fees invest the revenue back into the development of their agents. This means that travel agents are provided with ongoing training and learning opportunities to stay updated on the latest industry trends, technologies, and destinations. Such professional development can help agents improve their skills, provide better customer service, and expand their knowledge base.
• Brand Recognition and Marketing Support: Travel agencies often have established brands and marketing strategies that help attract clients. By paying monthly fees, travel agents can benefit from being associated with a recognized brand and can leverage the marketing efforts of the agency for their own benefit. This can help agents generate leads, attract new clients, and increase their overall business exposure.
• Financial Burden: The most apparent con of paying monthly fees is the financial burden it may impose on travel agents, especially those who are just starting their business or who may not have a steady stream of income. Monthly fees can eat into agents' profits and make it difficult to cover other expenses such as office rent, utilities, and marketing materials. Agents should carefully evaluate the potential return on investment before committing to any monthly fee program.
• Limited Flexibility: Some travel agents may prefer the freedom to work independently or with multiple agencies without being tied down to a single agency. Paying monthly fees may restrict their opportunities and limit their ability to explore other affiliations or partnerships. Agents should consider their long-term goals and aspirations before committing to any monthly fee arrangement to ensure it aligns with their desired level of flexibility and independence.
• Lack of Guarantee: Paying monthly fees does not guarantee clients or bookings. Travel agents must still work diligently to attract and retain clients and generate sales in order to generate revenue. While some travel agencies may promise a certain level of support and leads, agents should be cautious not to rely solely on these promises and should have their own marketing and sales strategies in place.

In conclusion, the decision of whether to pay monthly fees as a travel agent depends on multiple factors including the benefits offered by the agency, the financial situation of the agent, their long-term goals, and their level of independence. While paying monthly fees can provide access to additional resources, training, and marketing support, it is essential for agents to carefully evaluate the potential return on investment and weigh the pros and cons before committing to any monthly fee program. Agents should also consider alternative options such as joining a pay-as-you-go agency or starting their own independent travel business if the monthly fee arrangement does not align with their needs and objectives.

The Option for Federal Employees to Cover Their Own Travel Costs

As a travel agent, you might be familiar with the concept of paying monthly fees. While it may have been considered the norm in the past, times have changed, and there are now alternatives available that can help you avoid these expenses. In this blog post, we will explore some of these alternatives and why they can be a better option for your business.

First and foremost, one of the most effective alternatives to paying monthly fees is joining a host agency. A host agency can provide you with various benefits, including access to their booking platform, marketing support, and extensive industry knowledge. By joining a host agency, you can tap into their resources and technology, all without having to pay any monthly fees. Instead, you may have to give the host agency a percentage of your commission for the bookings made through their platform. However, this can often be a much more cost-effective option than paying monthly fees.

Another alternative to consider is becoming an independent travel agent. By going independent, you can have complete control over your business and its finances. However, it's essential to remember that being independent also means taking on more responsibilities. You will need to handle your own marketing, bookings, and technology solutions. While this may require more effort on your part, it also means that you won't have to pay any monthly fees to a travel agency. Instead, you can invest that money into growing your business and serving your clients better.

If you're hesitant to leave your current agency or go independent, you can explore the possibility of negotiating with your agency to waive or reduce the monthly fees. More travel agencies today are open to negotiating their payment structures in order to maintain a strong agent base. It's important to have a conversation with your agency about your concerns and explore possible solutions. You never know—they might be willing to accommodate your request, especially if you are a high-producing agent.

In addition to these alternatives, it's also worth considering whether paying monthly fees is necessary for your business. With the plethora of online tools and platforms available today, you might be able to find cost-effective ways to handle your bookings, marketing, and other operational tasks. For example, you can use online travel platforms like Travelport or Sabre to book flights, hotels, and other travel services directly without the need for a travel agency. There are also numerous cost-effective marketing tools available, such as social media platforms and email marketing services, that can help you promote your business without breaking the bank.

In conclusion, paying monthly fees as a travel agent is not the only option available to you. By exploring alternatives like joining a host agency, going independent, negotiating with your existing agency, or leveraging online tools and platforms, you can find cost-effective ways to run your business without incurring monthly fees. Remember to weigh the pros and cons of each alternative and choose the one that aligns best with your business goals and objectives.

Exploring International Travel Opportunities for Parole Visa Holders from the US

Frequently asked questions.

Yes, it is common for travel agents to pay monthly fees. These fees are typically used to cover various operating costs, such as access to booking systems, marketing materials, and ongoing training and support from the travel agency.

By paying monthly fees, travel agents gain access to valuable resources and tools that can help them conduct their business efficiently. These may include marketing and promotional materials, educational resources, and ongoing support from the travel agency. Additionally, paying monthly fees can provide agents with credibility and access to exclusive perks and discounts.

The amount of monthly fees that travel agents pay can vary depending on the travel agency they are affiliated with. Some agencies charge a flat monthly fee, while others may have a tiered structure based on the level of support and resources provided. It is important for travel agents to carefully review the fee structure and understand what is included before committing to any monthly payments.

• Sofia Jennings Author Editor Traveller

• Naim Haliti Author Editor Reviewer Traveller

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Independent Travel Agent Fee Report, 2021

Our 2021 independent travel agent report takes a deep dive into fee-charging practices for travel advisors who have their own accreditation. (If you’re looking for info on hosted agents, look here .) Within the independent advisor segment, there is a significant range in how these advisors operate their business.

In this report, we’ll look at how many independent advisors charged fees, what types of fees they charged, and how business operations (such as hours worked, niche, and products sold) impact their likelihood to charge.

Fee Summary: Takeaways of Independent Advisor Fees in 2020

Let’s cut to the chase: 56% of independent advisors reported charging fees and 44% charged no fees 1 . Here’s the full breakdown:

This is a 19-point drop from last year when 75% of independent advisors charged fees. Why is this?

In part, more advisors reported they didn’t charge fees due to a precipitous drop in bookings at COVID’s onset (the timeframe which the survey reviewed).

However, this decline was offset by a much higher motivation to begin charging fees.

In our 2021 survey, 37% of independent non-chargers reported they’d implement a fee in the next 12 months. This is a drastic 29-point increase from our 2020 survey when only 8% of non-charged reported they’d charge a fee in the future.

Among those who did charge fees, median air ticketing fees typically increased.

What this tells us is that the pandemic may have played a role in motivating non-chargers to stabilize their income with fees. Additionally, it’s possible that some advisors had charged a fee in the past, but didn’t consider themselves to be fee-chargers during a time when they made no booking. 2

However, among those who did charge fees, median air ticketing fees typically increased. The few exceptions were international air (which stayed level) and special coupons (which slightly decreased).

Below we’ll take a deep dive into the fee practices that sparked these latest trends. Here’s what to expect:

⭐️ HAR ARTICLE HIGHLIGHTS: ⭐️

Infographic overview: independent travel agent fees, how many independent agents charged fees, what service fees did independent agents charge (and how much), what consultation fees did independent agents charge (and how much), agency operations and how it impacted fees, experience and likelihood to charge fees, why independent agents charged fees, independent agents who did not charge fees, har industry supporter shoutout, a glossary of terms.

Below is an infographic overview of the data we’ll explore today.

As you notice in our infographic, we’re about to throw around words like median, mode, and interquartile range (the scariest one, in my opinion).

I understand you probably didn’t get into the travel industry because of your love for statistics, or for an added edge in your Scrabble game. But don’t worry, all you need to do is click on the word and you’ll be taken to a short lay-person-friendly definition. You can try it right here! Interquartile range .

Okay, back to our regular programming. Great data! But don’t jump ship, because we have a lot more info to come.

Let’s cut to the chase: 56% of independent advisors reported charging fees and 44% charged no fee 3 . Here’s the full breakdown:

This is a 15-point drop from last year when 75% of independent advisors charged fees. Why is this?

What this tells us is that the pandemic may have played a role in motivating non-chargers to stabilize their income with fees. Additionally, it’s possible that some advisors had charged a fee in the past, but didn’t consider themselves to be fee-chargers during a time when they made no booking. 4

Below we’ll take a deep dive into the fee-practices that sparked these latest trends. Here’s what to expect:

49% of all independent advisors reported charging a service fee in HAR’s latest survey. In our survey, we group our questions about service fees into two categories: air-ticketing fees, and non-air ticketing fees.

Below is a closer look at fee trends for these two categories.

1. AIRLINE TICKETING FEES

Air ticketing is a lower to no commission product for most advisors, so it’s no surprise that ticketing fees have registered as the most common service charge among independent advisors year over year.

The graph below indicates what air ticketing services independent advisors charged in 2020. Additionally, it also includes the median charge as well as the interquartile range .

Median charges varied slightly depending on ticketing service. Since domestic and international air were the most common service fees, HAR considers air ticketing the “commodity” item of fees, similar to how people may use the price of milk as a reflection of the overall cost of groceries.

Most air ticketing charges increased in 2020 among independent advisors. The exception to this was international air (which stayed level) and special coupons (which decreased slightly). You can see how the needle has moved for different air ticketing fees below:

2. NON-AIR TICKETING FEES

The top three most common non-air fees were FITs, tours packages, and air-inclusive packages also registered the highest median per booking fees at $150.

While air-ticketing was the most common service fee charge among independent advisors, advisors also charged for other services. The top three most common non-air fees were FITs (59%), tours packages (39%), and Air-inclusive packages (36%). These three products also registered the highest median per booking fees, $150.

In our survey, we asked respondents whether they charged per booking fees or per person fees. Independent advisors favored per booking fees over per person fees for the majority of non-air services. The exceptions to this were air-inclusive packages and shore excursions, categories where advisors favored per person fees, and shore excursions, where advisors were equally likely to charge a per person or per booking fee.

The table below ranks which non-air ticketing fees indpendent advisors were most likely to charge, including the per booking and per person medians:

While independent advisors reported more variable medians than their hosted peers , the most common median fee for non-air services (per person or per booking) was $50.

Overall, 31% of independent advisors charged a consultation fee, a significant 15-point drop from 2019 when 44% of independent advisors reported charging a consultation fee.

31% of independent advisors charged a consultation fee.

Among those who charged consultation fees, the overwhelming majority, 79%, opted for a flat fee. Here’s the full breakdown below:

Here’s a few additional takeaways on independent advisors’ consultation fee trends:

​​1. Flat Fees:

Advisors typically approach flat fees in two different ways.

• Fixed Rate: When an advisor charges the same flat fee regardless of the type of trip they’re planning, it’s considered a fixed flat rate.
• Variable Rates: Some advisors will charge a higher flat fee depending on the complexity of the trip. A great example of a variable rate is from the agency Italy Beyond the Obvious, which charges a daily flat fee $225 or $350+, depending on the level of planning services and support provided.

A flat fee was the most common fee structure for independent advisors. The median fixed rate for flat fees was $150 in 2020, a drop from 2019 when the median was $200. However, more independent advisors reported charging a variable rate, 58%, compared to the 42% with a fixed rate.

The variable rate of flat fees increased in 2020, $100-$500 compared to $88-$350 in 2019.

However, the variable rate of median flat fees increased in range. In 2020, variable flat fees ranged between $100-$500, higher than in 2019 when the range started lower and was narrow, $88-$350. 5

The overwhelming majority of independent advisors—98%—charged a one-time flat fee opposed to a daily flat fee. A slimmer majority of independent advisors charged a variable rate, 58%, compared to the 42% with a fixed rate.

2. Per Person Fees & Hourly Fees

Few independent advisors charged per person fees and hourly fees (13% and 8% respectively). We didn’t receive a strong enough sample size for this fee-charging segment to offer reliable median fixed rates or variable rates.

The majority of advisors who charged these types of fees reported having ICs and/or employees (75%) and worked full time before COVID (81%).

While they ran the gamut in agency operations from niche, experience, and products sold, there were a few unifying traits. The majority of advisors who charged these types of fees reported having ICs and/or employees (75%) and working full time before COVID (81%).

3. Plan-to-Go Fees

Last year, HAR added a “plan-to-go” fee option to our survey in addition to our usual suspects listed above.

In 2020, only 6% of independent advisors overall charged a plan-to-go fee.

Plan-to-go fees are like the “car diagnostics” of the travel world. You may have to pay a mechanic for a diagnostic if you decide not to get your car fixed at their shop (or try to fix it on your own). But if you do get it fixed, the diagnostic is waived.

A plan-to-go fee is an upfront payment or deposit advisors receive from clients in order to start planning their trip. The plan-to-go fee—in full or in part—is then applied to the booking if the traveler decides to book through the agent.

In 2020, only 6% of independent advisors overall charged a plan-to-go fee. (This is much lower compared to the hosted advisor segment, where 25% reported charging plan-to-go fees.) When looking at this small segment:

Here are some big-picture data on the business models of independent agents, how many hours they work, and how these factors impacted their likelihood to charge fees:

1. HOME-BASED VS STOREFRONT:

75% of independent advisors operated home-based agencies and 25% were storefronts.

Agency location had a large impact on the tendency to charge fees. Home-based advisors were less likely to charge fees, 45% compared to the 68% of storefront advisors who charged.

The 18-point gap between home-based and storefront agents has narrowed from 2019 when a 21-point gap separated these two segments.

2. CORPORATE VS LEISURE:

Travel products sold impacted the likelihood to charge fees. Advisors who sold corporate travel were more likely to charge service fees. Below the graph indicates the percentage of corporate advisors that sold leisure, corporate, or both as well as what percentage charged service fees.

While very few independent advisors booked corporate travel only, 100% of this small segment charged fees. 75% of independent advisors who sold both corporate and leisure charged fees, and those who sold leisure travel only were least likely to charge service fees.

3. FULL-TIME VS. PART-TIME HOURS:

“Independent advisors who charged fees were more likely to maintain full-time hours after the pandemic outbreak.”

Typically, full-time advisors are much more likely to charge fees, and this year was no different. Before the COVID outbreak, 57% of full-time advisors charged fees compared to 31% of part-time advisors.

The majority of independent advisors reduced hours during the pandemic regardless of whether or not they charged fees. However, most independent advisors who worked full time during the pandemic charged fees (72%), and only 44% of part-time agents did.

4. FEE PRACTICES ACCORDING TO NICHE:

The graph below indicates which niches were most common among independent advisors:

A niche’s popularity didn’t correlate with the likelihood to charge. Below we ranked the top three niches most likely to charge fees 6

• Luxury: 75%
• Weddings/ Honeymoons: 74%
• Destination Specialist: 59%

The graph below illustrates each niche category along with the likelihood of the segment to charge a fee.

Independent advisors reported a median of 15 years of experience.

Only 7% of new advisors who responded to our survey were independently accredited. 7 This new-to-industry segment was least likely to charge, with 36% reporting they charged fees. Below illustrates the likelihood to charge fees by years of experience.

To better understand advisors’ motivations for charging fees, we asked why travel agents charged fees.

Here’s the top 3 reasons independent agents charged fees:

• My time and expertise is worth it 48%
• Weed out 'tire kickers', 27%
• To stabilize my income, 15%

These results also mirror the motivations of hosted advisors as well. Below you can see all the responses tallied:

If you’re curious to dig into why you might consider charging fees, we have a ton of resources for you:

44% of independent advisors did not charge fees in 2020. In this section, we look at this segment to examine their hesitations to charge fees and their motivation to implement one in the future.

Below is a ranked list of reasons why independent advisors did not charge fees in 2020.

Client attraction and retention was the primary reason that independent agents didn’t charge fees (which were also the top two reasons last year).

DO INDEPENDENT TRAVEL ADVISORS PLAN TO CHARGE FEES?

When asked if non-charging independent advisors planned to implement fees, 28% replied “no,” 37% replied “yes,” and 35% replied “not sure.”

The volume of independent advisors who plan to charge in the future increased significantly from a mere 8% in 2019, to 37% in 2020.

A colossal thank you to these partner travel organizations: American Society of Travel Advisors , Association of Black Travel Professionals , CCRA , Destination Wedding Honeymoon Specialist Association , Ensemble Travel Group , Gifted Travel Network , Nexion Travel Group , Outside Agents , Royal Caribbean Cruise Line , Travel Quest Network , Travel Leaders Network , Travel Pulse , and Travel Research Online .

• Interquartile Range (IQ): A typical "range" shows us the lowest and highest fee. But the interquartile range helps us remove outliers in order to get a clearer picture of moderate fee-charging practices. This isn’t to discount your fee strategy if you charge $1,000 for fee for international air, or if you only charge $2 to grandma Matilda because she pays you (literally) in dimes. It’s just to help give a clearer picture of what the “average” advisor is charging. For those really nerding out, the Interquartile Range measures the range between the 25th and 75th% percentile. This means the range excludes the data from the lowest 25% and the highest 25%, eliminating the lower and upper outliers and offering a picture of more moderate fee-charging practices.
• Median: The median is the middle value in the set of numbers. (That’s right, the middle child of data!) We used the median value to determine age and years of experience. This helped us get a clearer picture of the “average” agent, by eliminating outliers that skew the data.
• Median Range: When we offer a median range the numbers reflect the spread between the middle value of the lowest fee entries and the middle value of the highest fee reported by our respondents in our survey.
• 8% of independent advisors were non-sellers. This data only profiles independent advisors that sold travel in 2020. ↩
• This is data-driven speculation about respondents' attitudes toward taking the survey. We did not ask respondents if they had charged a fee in the past. ↩
• It's important to note that 8% of independent advisors were non-sellers. These independent advisors were not included in this data. ↩
• This is data-driven assessment about respondents' attitudes toward taking the survey. We did not ask respondents if they had charged a fee in the past. ↩
• The range depicted here is a median range. Respondents had an opportunity to input an amount for the lowest charge and highest charge. The median low is the median of all “low responses” and the median high is the median of all “high responses.” For categories, ”Hourly Fee” and “Per Person Fee,” we did not have enough data to provide a median fee and/or a median low and median high range ↩
• Here we only included niches with response rates high enough to offer reliable data. River Cruises, Disney, Other, Corporate, Adventure Travel, Accessible Travel, Heritage Travel, LGBTQ+, MICE, and Wellness Travel did not reach the threshold. ↩
• We consider “new advisors” those with 0-2 years experience ↩

About the Author

Mary Stein has been working as a writer and editor for Host Agency Reviews since 2016. She loves supporting travel advisors on their entrepreneurial journey and is inspired by their passion, tenacity, and creativity. Mary is also a mom, dog lover, fiction writer, hiker, and a Great British Bake Off superfan.

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Should I Use a Travel Agent? Our Travel Expert Says It Makes All the Difference.

The new age of travel agents know how to find deals, book off-the-beaten path adventures, and get you out of any jam. Especially if you know who to use.

Heading out the door? Read this article on the Outside app available now on iOS devices for members! >","name":"in-content-cta","type":"link"}}'>Download the app .

I’ve always thought that planning my own trips was the most cost-effective way, but I’ve been hearing more about travel agents making a comeback and saving their clients a lot of money. What kinds of outdoor trips should I turn to a travel agent for, and are there any who specialize in working with adventurers like me?

Technically, I’m a professional traveler. As a journalist, it’s my job to research and connect with locals to get beneath the surface of a destination. So I have never really used travel agents. What could they plan better than I could?

A lot, it turns out. Over the years, I’ve gotten to know many travel specialists, and I consider them magicians. My big aha moment happened two winters ago on a trip to Iceland . A massive storm shut down internal flights for a day, causing me to miss my return flight to the U.S. Normally, I would have spent frustrating hours on hold with the airline. But because I’d paid $65 to have Ana Gloria Garcia, an air-support specialist at the travel agency EmbarkBeyond, find and book the most affordable and convenient flight option for me, she handled the rebookings while I soaked in the Blue Lagoon.

During the pandemic, agents became advocates helping travelers get refunds on canceled flights and trips. As travel has come roaring back, an agent’s superpower is now their access to the best hotel rooms, most in-the-know guides, free amenities, and more, says Cory Hagopian, senior vice president of sales and partnerships for Virtuoso , a global network of travel agencies.

And they’re attracting a young clientele. According to a recent industry survey , 38 percent of millennials and Gen Zers are opting to use travel agents as opposed to booking on their own trips. That number is far greater than Gen Xers and baby boomers, of whom only 12 and 2 percent respectively use agents.

What Do I Gain from Using a Travel Agent?

I recently had a friend tell me she spent close to 40 hours researching a family trip online. She probably could have gleaned the same intel from an hourlong conversation with a travel adviser. Knowledge is priceless, and advisers act as your insiders. They know what you don’t and fill in the blanks for things you might not have considered, says Erika Richter, a spokesperson for the American Society of Travel Advisors (ASTA). Their firsthand knowledge, vast network, and on-the-ground connections all combine to provide a unique perspective for crafting the perfect itinerary for you.

Most travel advisers specialize in certain regions and countries and travel to them frequently, so they have up-to-date intel on not only the best safari camps but the perfect tent to book for the most incredible views and the best local restaurants you won’t find on Tripadvisor. They want their client’s trips to go well to keep them coming back, so it’s in their interest to have sussed out hotels and itineraries before they send you out into the world.

Nicole Forster, 29, considers herself a savvy traveler. She’s been to 20-plus countries and enjoys destination research. But when it came to planning her honeymoon in Africa, she felt overwhelmed, so she reached out to Danielle Meyer at Coastline Travel Advisors , which specializes in bespoke itineraries. “Originally, I wanted to go to South Africa, Victoria Falls, and Madagascar,” Forster recalls. “Danielle convinced me that if we wanted to relax, we should stay in South Africa and save the other countries for separate trips.”

Over five phone conversations and multiple emails, they crafted a 15-night itinerary that included Cape Town, the winelands, the Cape Peninsula, and a safari at the Thornybush Game Reserve. Forster established her budget early in the process, and Meyer sent her a variety of lodge options to choose from.

“I initially wanted to start with the safari, but she pointed out that we’d be jet-lagged and would need to wake at sunrise for game drives,” says Forster. “The safari was our highlight, so it was a perfect way to end the trip.”

Not only did Meyer book all of the flights, hotels, and transfers, but she created a detailed, day-by-day trip app for the couple that included useful information like check-in times at hotels and how much to tip guides .

Agents also act as advocates. If something goes wrong during your travels, they’re on call 24/7 to handle it. When Forster left the battery and charger for her camera at a hotel, Meyer arranged for an on-the-ground contact to go to a camera store and buy new ones that would be delivered to her hotel the next day.

The cost for the honeymoon planning: $150 per person. “I wouldn’t use a planner for a trip to Hawaii ,” Forster says, “but if I ever took a big trip like this again, I’d 100 percent work with an expert.”  

When to Consider Using a Travel Agent

For savvy trip planners, the best time to use a travel agent is for complicated international travel. It can save you hours of planning and peace of mind that if anything goes wrong in your chosen far-flung destination, there’s someone a What’sApp message away to handle it.

Domestically, I’d consider using a travel agent when planning a multi-week national park trip or multi-island trip in Hawaii. They will save you time, guarantee you get the best guides, and help you land reservations at always-booked lodges and hotels.

Dream Trips Delivered

Jessica Cook and her husband both work in the travel industry. Decision fatigued, they handed their honeymoon logistics over to the team at Askari Travel , an agency that specializes in South Africa. Their original plan was also an African safari, but just as they were about to put a deposit down, the Omicron variant of the coronavirus made headlines. Worried about getting stuck abroad, they reached out to Askari’s founder, Muriel Truter, who is from Zimbabwe, and upon her advice, changed their focus to South America.

Knowledge is priceless, and advisers act as your insiders. They know what you don’t and fill in the blanks of things you might not even have considered.

Truter suggested they stick to Colombia rather than country-hop. Cook supplied a budget and a wish list: 12 days, no more than three destinations, a barefoot-luxe feel, and adventures like horseback riding and mountain biking. The rest was a surprise that Askari pretty much nailed, with the exception of one hotel.

“Everything felt so authentic, but this one hotel on Barú island felt really fabricated and was full of American tourists,” recalls Cook. She immediately messaged the Askari team, saying, “Hey, this place really isn’t our vibe,” and within an hour they were on a water taxi headed to Blue Apple, a B Corp hotel—and an Outside pick for tropical adventures —on Tierra Bomba island. “It was honestly the best trip we’ve ever taken,” she says.

Are Travel Agents Expensive?

It depends. Cost varies. Some travel agencies won’t charge any fee, as they receive a commission from the bookings, while some high-end agencies will charge pricey annual membership fees for their services. Still others charge nominal “professional” fees starting at $150. Fees often fluctuate based on the length and intricacy of a trip and how far out you do the planning (6 to 12 months is recommended). You may occasionally come across agents who charge a percentage of the total trip price or hourly rates.

Basic travel enquiries are generally free. In 2016, Leah Smith, founder of Tafari Travel , opened an old-school brick-and-mortar location in Denver’s Cherry Creek neighborhood so her services would feel less intimidating to first-time users. “With our retail-office location, we’ve become part of the community, and both clients and non-clients are welcome to pop in and ask whatever questions they may have, no charge,” she says.

Matt Lindsay, founder of the surf-guiding and travel company LuxSurf Travel , builds relationships with resorts and property owners to get discounted rates that he can then pass on to guests.

Dominic Allan, the founder of Real Latin America , specializes in travel to Belize and Nicaragua and caters to independent travelers who are happy to book their own flights and hotels but are seeking his local intel. Allan’s three-tier pricing structure starts at $300 for up to three hours of phone calls, during which he might weigh in on where to eat (or not to), the best room to request in a certain lodge, or whether you really need a guide to hike.

Value Versus Savings

If you’re just looking for deals and steals, you might not be ready to work with a travel adviser, says Richter of the ASTA. “Anything you invest in with a travel adviser comes back to you in the form of amenities, customer service, peace of mind, better access to unique experiences, and handcrafted itineraries,” she says. “You could save money by cutting your own hair, too, but most people go to someone who knows what they’re doing.”

Agents work with preferred partners who can guarantee perks for clients, such as free upgrades, early check-in or late check-out, and resort credits. Those add-ons often translate into savings, says Justin Huxter, cofounder of the UK-based Cartology Travel . “We had a client go to Maui for a week, and because of our partnership with the resort, breakfast was included,” he says. When breakfast costs $120 for two, that’s a savings of $840.”

Some of the Best Travel Agents in the Adventure World

Some of my go-to resources for finding a person to work with include travel expert Wendy Perrin’s annual Wow List of tried and trusted agents, the Adventure Travel Trade Association’s adviser network , and the ASTA’s advisor directory .

In addition to the agents mentioned throughout this story, others I highly recommend for adventurous travelers include:

• Dan Achber of Trufflepig , for Africa and the Middle East
• Miguel Cunant of Sri Lanka in Style
• Javier Echecopar of Journey Costa Rica
• Daniel Fraser of Smiling Albino , for Southeast Asia
• Elizabeth Gordon of Extraordinary Journeys , for Africa
• Kleon Howe of the Art of Travel , for French Polynesia
• Jay Johnson of Coastline Travel , for Hawaii and California
• Antonello Losito of Southern Visions Travel , for Puglia, Italy
• Rabia Malik of Fora Travel , for general worldwide travel
• Robyn Mark of Mayamaya Travel , for Africa, the Alps, Patagonia, and Japan
• Marisol Mosquera of Aracari , for Peru and Bolivia
• Zach Rabinor of Journey Mexico
• Raluca Spiac of Beyond Dracula , for Romania

Travel-advice columnist Jen Murphy is now a believer in using a travel agent. Thanks to their expertise and connections, she’s avoided dozens of trip catastrophes. 

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Many Travel Agents Haven’t Ever Charged Fees. Here’s Why Some of Them Do Now

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Let’s be honest: When it comes to travel, most of us worry about our budget—a lot. Some travelers find it hard to trust travel agents or advisers because they worry about being charged for using their services.

However, not all travel advisers have fees—though it is a growing trend to charge them.

Are Travel Agents Free?

Traditionally, travel advisers are paid a commission by their suppliers. So if you go on a cruise, the cruise line will pay the travel adviser you use for booking your trip.

Commissions are usually a standard commission rate decided by the cruise line (such as 20 percent of the cost of the cruise), though this can range depending on, for example, whether your travel adviser is affiliated with a host agency that can provide higher commissions for the suppliers they use most frequently due to business partnerships (though often the host agencies take a portion of a travel adviser’s commission, which can further complicate things). This is the case for cruise lines, tour operators, hotels and resorts, and even vacation packagers.

Commissions were once the standard way that travel advisers made money—not by charging customers, but by earning money from the suppliers they used.

Tammy Levent, president of Elite Travel Management, explains why her agency has never charged fees: “At Elite Travel, after thriving in the travel industry for over 30 years, we have built a solid reputation based on trust and exceptional service. We understand the competitive nature of today’s travel market, especially with the rise of online booking platforms

Why More Travel Agents Are Charging Fees

The same is happening among travel advisers, and a new trend has begun: charging fees for certain travel planning services. Of the 26 travel advisers who shared their expertise for this article, 17 of them charged some type of travel planning service fee, though their fee structures vary.

So what are some specific reasons that travel advisers are beginning to charge fees for their services? Let’s take a closer look.

One of the biggest reasons travel advisers choose to charge fees for their travel planning services is to weed out any clients who might not be serious clients in the long run. Travel advisers can spend hours quoting and pricing trips for travelers, yet those same travelers might just book directly or choose to plan the trip themselves, therefore taking away the opportunity for their adviser to generate income from those hours. That’s only one example of one of the frustrations of a travel adviser.

More complicated bookings like FIT trips, group travel, destination weddings, or meetings can also take hours to plan, yet most travel advisers aren’t paid by the hour. That means they’re relying on the promise of a commission only after their clients have left on their trip.

Another reason should be easy to understand: Sometimes, commissions just aren’t enough. Imagine a travel adviser only earns $200 in commission from a FIT booking that took 16 hours to plan, book, and execute. Divided by the number of hours spent planning the trip, the travel adviser’s take-home pay is only $12.5 per hour.

While this is a creative example, it can demonstrate that sometimes the amount of time spent planning travel for others doesn’t actually pay when it comes down to the amount of commission the adviser will earn, leading some to introduce travel planning fees, fees for booking airfare (another segment that pays relatively limited or no commission), and more.

JoAnne Weeks, Vacation Division Director at Acendas Travel, was one of the travel advisers who started out not charging fees, but found them useful and even necessary after the pandemic ended.

“I am the first to admit that I pushed back on fees for a long time,” said Ms. Weeks. “Especially for cruises, but I came to realize, I was giving away my 28 years of cruise expertise to my clients for free. People would request information, I take my time to research, put together a custom quote for lines they hadn’t even heard of, only for them to take my information I gifted them and book it themselves. We grew tired of being used. You’re required to pay to consult a lawyer, a plumber’s service call, heck even the person cutting your hair. We are worth it.”

Ms. Weeks said that the revenge travel trend of the post-pandemic travel era led to many travelers asking for information, but leaving without booking with Acendas Travel, leaving her to implement a fee structure in 2021. Fees for her agency include a cruise concierge fee, FIT fee, flat air service fees, and more, all adjusted according to how long each takes to plan.

Nick Pena, Luxury Travel Designer at Cruise Planners, is a travel adviser who charges clients fees for ticketing airfare, changing their itineraries, and cancellations.

“Charging fees helps weed out the clients I don’t want and keep the ones that value the work that I do,” Mr. Pena explained. “Having a fee structure allows the adviser to have a more stable income, guaranteeing my time is paid for whether they do the trip or not. Even simple tasks like ticketing airline tickets get a fee of $25. No one else works for free. Why should I?

Why Book With a Travel Agent?

Well, it’s all about expertise. Travel advisers are experts at planning travel, and sometimes that’s exactly what you need. While you could book something online without ever talking to a human being, that human connection is often what people need, especially when things go wrong on trips or when you’re looking to book something completely unique.

Madeline Steuber Johnson, co-owner of Steuber Travel Group, explains her agency’s outlook: “We have multiple calls getting to know our clients; we often spend a lot of time designing an entire itinerary before it even gets to a DMC. We hand-pick the hotels and we push back in the quoting process with our partners, asking follow-up questions and making alternative suggestions so that we really deliver something highly personalized. That, in itself, requires investing a huge amount of time into our education and destination knowledge as well. We are not in the business of acting as a middleman or woman, forwarding generic itineraries provided by companies doing this on a mass market scale.

In the End, It’s up to You

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