You are viewing 1 of your 2 free articles
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.”