FORMER ABTA head of legal services Alan Bowen has
advised agents to copy Campaign for Real Travel Agents chairman Edwin Doran and
charge refundable service fees to clients.
Speaking at an ABTA seminar on service fees held in
London, Bowen said the move would deter time wasters.
Doran introduced a £25 refundable fee for time wasters
two years ago, and plans to raise this to £40 in November.
Bowen stressed that adding service fees to client
bookings was the future of the industry because of dwindling airline commission
payments.
Bowen asked delegates: “How many of the same people do
you see coming through your doors again and again, but never make a purchase?
If you introduce a £40 charge it will get rid of those people who waste your
time.
“We offer a professional service, and people can’t
expect to receive a service for free anymore.”
He dismissed claims that introducing service fees
would drive away custom as long as agents prove they add value.
He said: “If you are going to introduce fees, you will
have to offer a level of service that differs from your competitors. ”
Bowen, now at London’s AGB Associates, predicted
airlines would introduce zero commission payments within three to five
years.
“Agents won’t be able to switch-sell from British
Airways because customers want to travel on BA. When the likes of Virgin
Atlantic and BMI British Midland see this they will soon cut commission
payments,” he said.
According to the American Society of Travel Agents,
ABTA’s US equivalent, 93% of travel agents now charge a service fee following
the scrapping of commission payments by US airlines as opposed to 10% in 1994.