Jennifer Morrison, CTC
To fee or not to fee? That is the question.
March 2020 brought new challenges and these challenges were unheard of. Instead of spending our days working with clients and putting together amazing itineraries, we watched suppliers canceling trips and our Projected Income Reports were dropping faster than the Ball on New Year’s Eve.
While many suppliers offered some type of commission protection for certain trips, there were multiple who didn’t. This meant all the time and effort put forth into making these memorable trips was lost, not to mention the time explaining to clients their options. All of this work was going unpaid, and in many cases unappreciated due to the frustration of the situation.
There were many agents who already implemented a Service Fee Plan prior to the Covid-19 Shut Down and prior to this, I was against the process of doing this. Depending on the trip booked, we can make a generous commission. While some trips paid more than others, in my mind, it balanced in the end.
Never did I imagine there would be a travel shutdown and the world would essentially stop. I couldn’t have imagined that all of the trips I had booked would be canceled, but reality set in quickly. How could this have been avoided? How could be compensated in some form? The answer was simple: Service Fees.
While I couldn’t go back in time and add these to my trips that had been canceled, I could make sure that any trip that did not offer some sort of commission protection, would still allow me to be paid for the work done in case the trip was canceled.
The idea of implementing this was hard, but I still struggle with it, especially when it comes to booking trips for family and friends. I had based my business on “There are no additional fees to use me!” for 8 years, how can I now say, “I have fees and the next agent doesn’t, so use me!” That was the hardest part for me to overcome.
I had so many worries. Would I lose clients? Would other agents in my area use this against me? “Jen will charge you, but I won’t!” Then I realized that maybe I don’t want to be working with those clients who wouldn’t pay me for my knowledge and expertise. Maybe I have been spinning my wheels with those clients, trying to please them when they aren’t respecting my time.
By charging the fees, not only would I be protecting myself from unexpected cancellations, but I would also be attracting clients who were more loyal. These clients would be less likely to contact multiple agencies for the newest ‘online offer’. They would trust in my knowledge and expertise. I knew I would have more time for these clients, too, now that I wouldn’t be spending so much time quoting clients 6 or 7 times and hearing through social media that they booked on their own.
Now that I knew this was something I wanted to do, I wondered how would I do it. When would I charge this? For the initial consultation? Would any part go to the trip when it was booked? How would I announce this (or should I make an announcement)? I needed to make a list of what my fee includes, when I am available, and the fee for each trip or service. I wouldn’t feel comfortable charging the same fee for each trip since some destinations require less attention than others. Would it be based on party size or the number of nights? I had so many questions and the more I thought about it, I had even more questions!
I had to be honest with myself and look at what I did each day and what I spent the most time on. The answer was simple. Quoting. The majority of my day consisted of responding to quote requests. Many of these quotes were so vague.
“Hi Jen, we would like to go to Disney in April. Is it crowded?”
I would respond by thanking them for reaching out and asking if they would like to set up a phone call so we can discuss details, including dates, number of people, resorts, etc. before I sent over a quote. If they were unable to set up a phone call within the next couple of days, I would need the following information to give them the most accurate quote possible, and I would provide a list of questions to them.
I would receive responses like this:
“No, we want to go in April with our kids. Whatever is cheapest. All the parks and the Harry Potter stuff.”
This is where I spent most of my time. This is when I knew I needed to implement something at the beginning of the process. This would eliminate those clients who may not have been serious about booking. I realized over the years, if they can’t give me dates, I should not be quoting them. Spending time quoting a phantom trip, is only going to add more work later and set the tone that they don’t have to answer my questions and they will begin requesting things and asking planning questions without every booking.
After discussing with our agency owner, who is 100% in favor of service or planning fees. I decided it was time to implement something up front asking for a commitment from my potential clients. With her help, we built an email that explained this process. The email advised them I would like them to sign a Planning Fee Agreement. By doing this, our initial consultation, research, and creation of their travel itinerary would be created. It went on to explain that I can spend up to 25 hours working on a trip from our initial discussion through their arrival back home. Fees can range from $350-$1,000 for more complex, longer trips. All fees quoted are based on 1-6 people traveling on the same itinerary, and group travel would be quoted separately. It would include my research, time, technology, and planning services, as well as my keeping up on all the latest destination requirements and offering my professional and honest opinion as we move forward.
In addition to these fees, if they are requesting a last-minute trip, there would be an additional fee. It goes on to explain that these fees are non-refundable, and the client needs to sign and pay for the fee before I begin working on the itinerary.
Our agency has set up multiple ways to pay the fees via check, credit card, Venmo, PayPal, or Zelle, making sure each client has an option that would work for them.
I do know consistency is the key to implementing this program, but it is still hard at times to wrap my head around it. There are long-time clients that I book multiple trips for each year that I waive the fee for because they are loyal and do not take advantage of my time.
There are leads that would request a quote every time I would post a deal on social media. I have an easier time sending those a fee email, but also ask them if they would like to talk to one of our newer agents. I have many who like the practice of quoting and working with clients, and I cross my fingers that they get a booking from them! I rarely hear from them that they would like my fee-based services, but they do like to know they have another option.
The emails I have the hardest time sending are for those potential clients that were referred to me. Most were told, “Use my Travel Agent, she is great, and all of her services are free!” If they haven’t used me since Covid, they aren’t aware of the new fee-based service or if they have used me but have been with me since I started, I haven’t been charging them a fee. This is when I decided each potential sale will get the notification that I am starting this service, and I would explain to any client that I am waiving the service for, that I am waiving (or reducing), based on our history working together.
I do not have the process of implementing the service fees down to a science yet. The process is continuously being tweaked and improved upon. I even feel I am gaining confidence each month as I receive some “Good for you” responses or “It’s about time, I know how hard you work!” responses! I never realized that some clients, true clients who appreciate the value of what I do, would react in such a positive way to charge them more money!
I don’t mind paying a premium fee for premium service, in fact, I welcome it! I do want someone who is an expert in their field assisting me when I need it. Would I pay more for a doctor that is an expert in their field with thousands of 5-star reviews, rather than a doctor with thousands of 3-star reviews? Absolutely! When I get my hair done, do I tip my stylist to show appreciation for her work on my hair and the countless hours I am sure she has spent learning how to color hair in a way that I haven’t seen before? Yes.
It’s so important that we don’t undervalue what we do, along with the services and expertise we provide. Yes, we receive a commission, but only if a client travels. What if they don’t? What if we have a client with unanticipated flight delays that has a holding for hours trying to rebook them? What about a Disney client who requests a very short trip, with very little commission, and then wants me to book multiple dining reservations, who cancels 3-days prior to their trip? There are so many unpaid hours in this industry. Most of the trips that are canceled, with zero compensation take up the most amount of time. When I became an agent, I knew that this would be the case, when I entered the industry and I would sit at my desk 12-14 hours per day quoting, responding to questions, posting on social media, or researching new destinations. There are still days that are that long, but instead of spending time working on clients I may book, I can work on custom itineraries or guides for my clients.
I do not book as much as I once did due to other agency responsibilities, but the trips that I book now help me see its quality over quantity. I no longer book 20 value resorts per month. Instead, I book Australian tours or deluxe resorts for groups or larger families. I still work very hard but feel I am working smarter, not harder than I did before.
I feel my clients value me more and do they expect more? Most likely they do, and they should if they are being respectful of my time. Anyone paying a premium should expect a higher level of service and I understand and respect that. I share my set office hours with my clients and let them know ahead of time that I will not respond outside of my business hours. I also use my delayed response in my email, so they will receive an answer in the morning (since I do usually check my emails throughout the evening to be sure nothing urgent comes through). I used to respond right away to non-urgent requests, some at 11 pm. I soon learned that when I did that, clients expected it all the time. I wasn’t sleeping well because of it, I’d be on ‘high alert’ trying to at all hours. This was not healthy, so I began sticking to the hours that I clearly defined.
So, to answer the question, To fee or not to fee? I wholeheartedly say Fee! You can start small and do what feels right for you based on your experience, but don’t undervalue your worth. You know if you are a hard worker, or you know if you phone it in. If you feel your service, is top-notch, I recommend sharing that value with your clients and letting them know why you are worth it, because you are!
