The cost of accessing travel content, booking platforms and ticketing support is becoming an important consideration for travel agencies, raising questions about whether these expenses affect agents’ margins and whether they deliver sufficient value.
The issue came into focus following FlightsiteAgent's decision to change its 2% fee structure. Initially applied to credit-card payments, the fee was subsequently restructured as a service fee on all ticket issuances, regardless of payment method.
Andy Hedley,CEO of the TravelLab Group, which includes FlightsiteAgent, said the fee supported the platform’s broader offering, including ticketing administration, booking platform infrastructure, ongoing software enhancements, supplier negotiations and operational support involved in issuing and managing tickets.
“The previous fee was linked specifically to credit-card processing. The current structure applies a standard service fee at ticket issuance, across all forms of payment, reflecting the platform, commercial benefits and support services available, regardless of how a booking is paid for,” he said.
More broadly, agencies need to balance the costs of booking platforms and distribution channels against the efficiencies and support they provide.
The costs
According to Riaan van Schoor, CEO of Agentivity, booking platforms require significant investment and agents should be prepared to pay for the technology they use.
“Agents have for too long relied on a model where the GDS supplied them with everything, at no cost to them.” He argued that the financial model between airlines, GDSs and agents needed to change so that agents had greater control over the tools they use. “But it also means agents should charge for the work they do for their clients; we still see so many agents charging only a ticketing fee, whilst they do much more than that.”
Agents can access content through multiple channels, including traditional GDSs, GDS-connected NDC, NDC aggregators, direct airline connections, hotel aggregators and car-rental platforms, but each has its own commercial terms and costs.
“Those costs need to be recovered through the selling price, commission, service fees or a combination of these. If an agency consistently absorbs distribution costs without recovering them, it needs to review its pricing structure,” said Franz Von Wielligh, Head of Innovation and Member Support at XL Travel.
The largest component of a booking is usually the travel product but agencies also need to account for the cost of completing and servicing that booking. This includes consultant time, platform charges, payment processing, ticketing fulfilment and any changes or refunds.
Although these charges can quickly erode an agency’s earnings, agents should also consider the time saved, access to content and the ability to service bookings effectively.
“A platform that costs more but reduces manual work may still offer better value. Agents should understand the full fee structure before committing to a platform or service,” said Von Wielligh.
Who pays?
Whether costs were passed on to clients, absorbed by agencies or avoided through alternative booking channels depended on the business model, said Von Wielligh.
In leisure travel, passing fees to clients can be difficult when they are price-sensitive. “Agencies therefore need to explain the value of their advice and service while ensuring their overall pricing covers the cost of delivering the booking,” he said
For corporate agencies, fees can be built into client agreements depending on the terms agreed with that client.
Smaller agencies have fewer bookings over which to spread fixed subscription and technology costs. A monthly fee that is manageable for a high-volume business can take a significant bite out of a smaller agency’s earnings.
“This is where consortium membership can add practical value, providing members with access to a range of tools and booking options, at little or no cost, helping them avoid having to fund every solution independently.”
The price of AI
AI may change how agents search for content, compare options and manage bookings, but it is unlikely to remove the underlying costs of accessing travel products.
“Whether you use AI or developers, you end up with an IT infrastructure that won't be cheap,” said Van Schoor.
According to Von Wielligh, an AI-powered booking tool still needs to obtain availability, fares and booking conditions from sources such as GDSs, NDC aggregators, direct connections and other suppliers.
“It may reduce manual work, but it can also introduce costs such as subscriptions, integration, usage charges or AI token consumption. Who ultimately pays will depend on the commercial model. Technology providers may bundle these costs into their fees, agencies may absorb some through productivity gains, and some may be recovered through client pricing,” said Von Wielligh.
