Tuesday, March 3, 2009

Travel Agent Service Fees - Money on the Table?

I travel to as many shows as my budget will allow. While at these shows I love chatting with travel professionals. I love to hear about the great ideas you guys come-up with, like stuffing invoices with information about products/services they can use while on their trip or sending a newsletter that includes information on the most popular and affordable places local clients go to vacation. But you know what idea I like best? Presenting the travel agent service fee. I'm very surpised that very few travel agents collect in this area. By no means is this statistical, but I would say only 2 out of every 10 travel agents I speak to at a show actually assess a fee of any sort. And what are the main reasons why my friends do not collect? They're afraid they will lose the business; they've never done it in the past, so there's no need to do it now; and they do not know what the fair market value is.

This is money on the table; money to your bottom line. Your business provides such great service to clients that they come back to you each and every time they want to travel (at least I hope they d0). What does your service include? Surely more than just finding the best possible price for their trip. If you operate on a price-based model...ehhh, that's a whole different post. Anyway, that service, which is unique and different than the agency down the street, is your justification for assessing a travel agent service fee. So assess it!!!! You're worth it and you're efforts are worth it. Now it's up to you to show your clients that is the case.

I'll give an example of something I expect each an every time...good service at a restaurant. A waiter or waitress greets my wife and I, takes our drink order, takes our food order, serves our meal, inquires about dessert, makes one last call, and then hands me the check (I'm a gentleman, I always pay). Nothing out of the ordinary, right? But what if that waiter or waitress constantly refills my drink before I ask or even when I don't need it to be refilled or if they make a recommendation on a particular dish based on personal experience or if he/she asks us how their service was or finally...asking if we would visit his/her section next time we visited...I wouldn't think twice about giving a little extra tip. Why? Because that waiter/waitress left such a good impression, it separated her/him from others. Not exactly apples to apples, I know, but the point being, remind people why you're service is valuable and unique and they will be happy to pay that fee...myself included. You just have to sell you. You're the product in this instance and that fee is your commission to yourself.

I'm sure it's a lot more complex than that so I welcome feedback, thoughts, and opinions.

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