Pulse of the Industry: What Does 2023 Have in Store?
Travel Agent Marsha Mowers January 30, 2023
Service Fees
We’ve made it through the first month of 2023 and as travel continues its ebb and flow during its rebound, we wanted to take the pulse of what the industry is feeling and what we hope for the future.
Key challenges for agents continue to centre on supply and demand overall; flight disruptions and cancellations remain an issue as does staffing both in the air and on the ground. Commissions of course remain a vital issue as well, with many agents implementing planning fees after losing so much during the pandemic.
“I learned a lot from the pandemic and I decided on charging service fees to clients in 2022 and it has been met with a positive response by most clients, says Ayesha Patel, Travel Consultant, The Travel Agent Next Door.
“By implementing service fees, my paying clients appreciate the work I have to do before even booking their trip. Service fees also deter those who aren't serious about actually booking a trip and just want to use a travel agent's resources for their comparison shopping. They're the ones who tend to book with OTA's and those are not the clients I want. With this change in my business model, I now get more serious inquiries and clients who want to work with me to have the best vacation experience by working with an expert.”
Travel Kristin Bond of Bond Voyage Travel says her 2023 projections have her “twice as busy as 2019, which are fantastic.”
“With the surge in business, and ever-changing terms and conditions (including suppliers who are still offering future travel vouchers, leaving agents without compensation in the event of cancellations), I’ve had to implement service fees I do not see ever disappearing. The value of an agent has proven itself tenfold, and I predict this is going to become the norm, like a baggage fee, over the next 5 years.”
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