ALMOST two-thirds of all travel agents are charging service
fees following the dramatic reduction in airline commissions,
according to a poll of 300 retailers.
The research, by global distribution system supplier Amadeus, found
64% of agencies – both leisure and business – have
introduced service fees to offset the loss of revenue from
airlines.
According to the poll, the introduction of service fees does not
appear to deter business. Two-thirds of the agents that charge
service fees have increased them since their introduction –
most by 10% and some by as much as 50%.
“Increase fees as much as possible because there is still
strong demand in the market for agents’ services,” said
one agent polled.
Leisure agents who have introduced service fees said they have told
clients they are paying for greater flexibility and convenience
compared to booking direct on the web.
Amadeus UK marketing manager Rob Golledge said: “It’s
clear agents have had to adapt their businesses over the past few
years. What has emerged is an industry that is perhaps leaner, but
smarter and more customer focused.”