ASTA Study: More Than 40% of Agencies Charge Consulting Fees

Over 40% of agents surveyed in ASTA’s 2009 Travel Agency Service Fee Report are charging consultation fees for some types of custom travel, while a much smaller percentage charges fees for information given over the phone (12%) or in an e-mail (17%). The percentage of agents that charge service fees is over 90%.

“Most agencies today realize the value of their business expertise and the services they provide and have begun to expand their service fees in terms of the amounts charged and the number of services to which they apply,” said Chris Russo, ASTA President and Chair.

“Even so, there are still agencies looking to supplier commissions for a significant portion of their revenue. Given the increasing market pressure on suppliers to reduce costs, it’s imperative that agencies review their revenue sources thoroughly and make sure they are not overly dependent on one revenue source,” Russo said.

The report covers average service fees for air, cruise, tours, car, hotel, rail and other bookings. It also examines fees for other services, such as visa application assistance. The report also looks at revenue from service fees as a percent of total revenue, consumer attitudes toward fees, and the percentage of agencies that also charge consultation fees.

Among the survey’s findings were:

The percentage of agencies that collect services fees increased steadily between 1998 and 2005 to a vast percentage of agencies. In 2009 the figure was 91%.

Although the average service fee for air bookings decreased by $2 in 2009, for other types of travel bookings, the fees stayed the same or continued to increase.

The average fee for domestic and international air bookings is in the upper $30’s range.

The average fees for non-air travel have increased over time with the exception of “Car only” and “Hotel only” bookings. Agents report that fees on these services are the most unpopular with clients.