More than half of U.S. travel advisors charge a fee — here’s how, and why: Travel Weekly

When ASTA made official a yearslong endeavor to change its name in recognition of travel advisors being just that — advisors, not agents of suppliers — it came alongside an effort to get them to start instituting fees in recognition of their roles as professional consultants.

Seven years later, more than half of advisors in the U.S. charge fees of some sort, a number that is on the rise both here and abroad, according to a report last month from the World Travel Agents Associations Alliance (WTAAA).

The WTAAA and ASTA say that the shift toward fees is largely being driven by the loss of supplier commissions, especially from airlines, and by agencies seeking increased financial stability. It’s also been encouraged by both trade associations. 

“Travel advisors who evolve beyond transactional bookings into trusted consultants will thrive in this new era of modern retailing,” the WTAAA said. “The future belongs to those who confidently charge what they’re worth — because true expertise is invaluable.”

The WTAAA report shows that 55% of agencies in the U.S. charge fees, a figure reached via consultation with ASTA. That’s within range of Travel Weekly’s 2024 Travel Industry Survey, which found that 44% of agencies overall charge fees, with uptake higher among traditional agencies (64%) than home-based independent agencies (36%).

Mark Meader

Mark Meader, executive vice president of ASTA Corporate and a member of the WTAAA’s executive committee, said ASTA has long supported charging professional fees, as recognition of the quality, trusted work they do for clients.

“The good news from the U.S. perspective is that even though the fees may not be at 100% yet, it is something that’s growing,” he said.

The WTAAA has not previously done a study as comprehensive as this recent one that would show how much fee-adoption has grown. But trade associations from ASTA to the Association of Southern African Travel Agents and Advisors (ASATA) say members are increasingly charging fees.

That inclination was seen in the 2024 Travel Industry Survey, which found that nearly one-third of respondents (30%) said they either planned to or considered implementing service fees in the 12 months before the survey was fielded last summer, and 29% said they had already instituted fees.

Different ways to charge fees

Meader said that among the reasons fee uptake is growing is fallout from the pandemic. Travel, and commissions for completed trips, came to an abrupt halt, but the constant work to cancel and rebook trips did not.

The WTAAA highlighted other factors influencing the shift to fee-based revenue in the U.S.: Airline commission reductions and eliminations that started in the mid-1990s and fluctuating commission structures from suppliers; an increased demand from travelers for more personalized itineraries, requiring more time and effort from advisors; and the need to reinforce professionalism.

The definition of a fee can vary. In the U.S., the WTAAA identified five main fee models: In the hybrid model, the most common, advisors collect both a base consultation fee and commissions. Consultation fees involve a one-time charge before planning begins. Project-based fees are a fixed cost per trip segment or event. In the retainer model, a monthly or yearly payment is charged. And subscription or concierge services involve an annual membership and additional perks, which the WTAAA called an emerging trend.

Fees around the world

Looking around the world, about 50% of agencies in Canada charge fees; in Europe, 66%; in Brazil and South America the report found that adoption is low compared to the global averages.

In New Zealand, a whopping 95% of travel agencies charge professional fees. But there, they come in the form of trip management fees, the WTAAA reports, calculated by an advisor’s time investment and “reasonable margins.” The fee model has become popular in New Zealand because of steep airline commission reductions to the tune of 80% to 100% by carriers like Air New Zealand, the WTAAA said.

In South Africa, most agencies charge corporate service fees, but leisure advisors are also increasingly adopting fee models. And while adoption in Asia is low overall because of intense price competition, a little more than 500 advisors in South Korea charge a fee; that’s a “small but growing segment in a market traditionally reliant on commissions,” the WTAAA said.

Otto de Vries

“I think that the concept of professional fees is an evolution. It is a process,” said Otto de Vries, executive director of the WTAAA. “And I think what we’ve seen is that there have been different levels of adoption in markets at different stages, and what triggered that may have varied also from market to market.

“The other challenge, of course, is to get the buy-in and having the confidence that you are delivering a service and a value for which you are rightly able to position a professional fee,” he said. 

De Vries is also the CEO of ASATA, which only earlier this year added “and Advisors” to its name on an interim basis. Next year it will become the Association of Southern African Travel Advisors to better reflect the shift from transactional agents to advisors.

Asked if the WTAAA also has plans to change its name to incorporate “Advisors,” De Vries said, “I think it’s just a matter of time, really, isn’t it?”