While many agents remain reluctant to charge quotation fees, one travel agent says introducing a non-refundable deposit has helped her spend less time on clients who are simply shopping around.
Speaking to Travel News, she shared what prompted her to introduce the fee, how clients have responded and how her approach has evolved since then.
The agent, who wished to remain anonymous, introduced a non-refundable fee last year. She said her biggest concern was that charging clients would cost her business.
“The biggest challenge was convincing myself that charging the fee would be more beneficial than losing a customer who didn’t see the value of my services,” she said.
She now charges a non-refundable deposit when customers ask for more than three quotes or when they have previously taken up her time without making a booking.
How the fee works
The agent initially provides a quote at no charge and allows up to three quote options or changes before introducing the fee.
“Should they want more options I am happy to assist once they’ve paid the non-refundable deposit. If they book, it forms part of their package total. If they don't book, they do not get a refund.”
The fee ranges from R500 to R1 000 per person or per family and depends on what the client wants to book.
She says clients have responded well to the arrangement. “I've had a few clients that didn’t want to pay, but most of them are happy to pay the deposit if they are serious about their trip,” she said.
Wider benefits
The biggest benefit has been having more time to focus on genuine booking enquiries. She said suppliers could also end up spending time responding to multiple agents quoting on behalf of the same client.
“They could have multiple consultants contacting them for a quote for the same client who is shopping around. If a customer paid a travel agent a fee, they are less likely to shop around so I think it saves time and effort for everyone.”
She believes quotation fees could also help customers better understand the value of a travel agent’s knowledge and expertise.
“Customers will realise they are not just paying an admin fee but rather a professional service fee for knowledge and experience and when they pay a deposit or a fee, they are more likely to make an actual booking,” she said.
Finding the right approach
The agent said there was no one-size-fits-all approach to charging quotation fees.
“I think if you know your business and clientele it should be easier to figure out what to charge. Maybe agents new to the process could charge a lower fee for domestic travel and a higher fee for international.”
Since introducing her own fee, she has become more confident in the approach. “I am more comfortable and certain that it benefits everyone and I don’t get so many requests any more from customers who are shopping around.
“If you feel that a customer is shopping around or if you have offered them the best options and they request more changes, go ahead and charge them a non-refundable fee. This ensures that they are committed and won’t just take your hard work and expert advice to book online or price beat with another agent.”
