bowen tells agents to charge service fees

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.