Despite ongoing concerns about the time and expertise involved in preparing travel quotes, 76% of agents do not charge a quotation fee, according to a recent Travel News poll. The figure is almost unchanged from a similar poll conducted in 2023.
For some agents, the concern is that introducing a fee will drive potential clients to competitors. With little change in the past three years and no industry-wide standard, agents also face competition from new entrants who do not want to lose business.
“If agents charge the quotation fee, even if it comes off the service fee when the client books, clients will still choose an agent that does not charge the fee,” said Monique Victor, Owner of Victor Voyages. She usually charges from the sixth quotation onwards.
Glenda Ingram, Owner of West Beach Travel, says this creates a “catch-22” for agents.
“Agents who are relatively new to being an ITC are scared that potential clients won’t come to them. If we all charge, we won’t get so many time wasters who abuse our intellectual property. Some long-standing agents charge because they have enough business so if the ‘potential client’ goes away it won’t affect them.”
She doesn’t charge repeat clients as there is 80% chance of conversion. For new clients, if it’s a tailormade quote, she asks for a deposit, which comes off a final booking.
The value of expertise
According to Vanessa Frankal, Owner of Vtravel, another issue is whether clients understand what goes into producing a professional travel quote.
“I believe agents haven’t educated their clients enough on how much work goes into quotes,” said Frankal.
In her experience, she said clients were more accepting once the process was explained to them. “Clients understand that we can’t work for free and that our experience, knowledge and abilities come with a fee.”
Over the past three years, Frankal has embraced charging fees. “I embrace it now to protect my intellectual knowledge and time. If a client won’t pay then I know they aren’t serious travellers and I’m OK to let the enquiry go.”
Competing with online prices
Agents also face a difficult pricing environment, often competing with online agencies and suppliers.
“Suppliers advertise super-low unrealistic pricing, which gives a skewed view of what the costs actually are,” said Ingram.
Frankal said large online agencies could compete through low mark-ups and automated booking platforms.
“Large online agencies have staff to man their portals with zero or low mark-ups. You’re also competing with the airlines directly, especially those that seem to target clients directly.”
Lack of industry standard
The lack of an industry-wide standard on quotation fees makes it difficult for agents to establish the charge as a normal part of the booking process.
“Promoting us as professionals must be regulated. This will also stop every second person wanting to be a travel agent and prevent scammers who have tainted our industry,” said Ingram.
Retha Matthee from Retha’s Travel, believes quotation fees are unlikely to become standard practice. “I think all agents need to charge quotation fees but I don’t think this will be the norm like back when airlines stopped commission and all agents had to begin charging service fees.”
