Bourke claims industry is not ready for transaction fees

Bourke claims industry is not ready for transaction fees

TRANSACTIONfees is the ‘buzz’ word of the moment but they are difficult to implement and calculate according to BTI’s head of client finance Nigel Bourke.

Bourke said corporates and agents need to define what a transaction is and where they charge the extras like hotels, car hire and credit-card reconciliation. He said: “Despite transaction fees being regularly referred to, only three of his clients use that system.

“Corporates are showing an interest but only 1% of our clients – just three companies – are now paying per transaction fee processed,” he added.

“Do you apply a different transaction fee to every single type of travel? You also have to include the total service that’s provided not just the booking.

“The industry is not ready for transaction fees. Scandinavia is the only place where a true transaction-fee system works. The most common system is management fees.”

He added that even taking an air ticket as an official standard for a transaction fee had its complications when it involves invoicing, cancellations, refunds, multi-sector and destination arrangements.