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What Do Travel Agents Charge – This year was a banner year for the financial survey: More than 800 travel agents responded to the survey, a strong response rate that allowed us to obtain more detailed information about the 2018 travel agent financial situation.
One of the biggest takeaways from this year’s survey? We have the largest number of independent agents and shop agencies
What Do Travel Agents Charge
In fact, we have had so many responses from independent agents this year, that we have dedicated an entire article to the results of this segment. (Interested in comparing the results with data from independent agents? Go here.)
Travel Agents Affiliate With Host Agencies
We know you are a travel expert, not a math teacher. Terms like average, mode, or range can be confusing. As you read this article, we will link these words to our mini glossary. All you need to do is click on the word to be taken to the short definition.
We have created a few ways for you to digest all this interesting information, so take your choice: through videos, infographics, or through good old-fashioned reading.
In terms of gender and race statistics, the proportion of agents who received it was not significantly different when compared to independent agents.
In 2018, 46% of female recruits reported charging money, while 54% of male recruits received cash – an 8% gap.
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However, the results registered differences in financial behavior according to gender between the representatives received. In 2018, 46% of female recruits reported being charged a fee while 54% of male recruits received a fee – an 8% gap. Surprisingly, we found that this trend is reversed among independent agents, where women charge 13% more than men (see full results here).
When it comes to years and years of experience, there is a big difference between agents and freelancers. For hired agents, the average level of experience (4 years) was 9.5 years lower than the average among independent agents.
Professionally organized tours also fall short of their independent counterparts. The median age of accepted agents was 6 years less than the average age of independent agents. It is important to note that most licensing options require an agent to have industry experience before use. This may help explain why independent agents are older and more experienced.
This year’s survey attracted the attention of a wide variety of travel businesses. Overall, 86% of respondents were hosted, 10% were independent (not hosted), and 4% were franchisees.
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I think we will continue to track our name Host Reviews instead of changing it to Independent Authority Reviews. 😉
While the same entertainment/focus exists between independent and independent agents, their business model remains a point of difference between the two sectors when considering the home base and outlets:
Fewer franchisees owned storefront agencies (5%) compared to independent agents, who reported owning storefront agencies at 30%.
Recruited agents generally reported having less experience than independent agents. In both sectors, travel agents with less experience are less likely to charge, and may charge based on their level of experience.
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Only ⅓ of travel agents with less than one year of experience reported charging fees. However, ⅔ of travel agents with 6-10 years of experience reported overcharging. This data is consistent with information from our 2018 Travel Income study, which found that it takes 3-5 years to gain a foothold in the industry and really start delivering their business.
Below is a graph that shows the tendency of host agents to report higher fees as they become more experienced.
A travel agent’s niche also has a big impact on whether or not travel agents get paid. The top five destinations with the highest number of travel agents reporting that they have received money are:
You may be wondering why we don’t include “Other” as number 3 in this list as shown in the image below. The reason for this is that “other” includes a variety of categories such as groceries, special needs travel, all-inclusive, European FITs and so on. What shall we say? Travel agents cannot be put in a box!
How To Become A Travel Agent
We’re going to dive into what everyone wants to know: How much do travel agents charge? Here’s your answer: 47% of travel agents receive some form of payment.
Before we get into the different types of fees that agents offer, let’s make sure we’re all on the same page when it comes to the definition of fees. We looked at two different types of funding in our research:
When we looked at travel agents, 23% charged a service fee, 9% charged a consultation fee, and 15% charged a combination of the two.
Of the hosted agents, 23% received service fees, 9% received consulting fees, and 15% charged a combination of the two.
March 2019 Issue
Where an entity operates a business – retail or local – is a key factor in determining the potential charge. Agents hired with a store agency are more likely to charge a fee: 80% of travel agents with a store agency report charging a fee, while 45% of local agents are prepared only charge a fee.
Organized store agencies were also the most likely to charge service fees and consulting fees—31% compared to 14% among organized local agents.
38% of accepted agents charge a service fee. Of those, 15% charge service fees and advisory fees.
Airfare is a common type of service that all agents charge, including accepted agents. 46% of agents received reported booking air tickets only. Agents who book air-only are more likely to charge a fee than agents who are generally accepted, with 65% reporting that they charge a fee (compared to 38% of agents who are generally accepted).
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Airline booking is the most common service fee charged among the agents received: 56% of the agents received for domestic air, and 51% for international air.
The data in the graph includes the number of accepted agents who report service fee charges for this type of travel (eep, we’re deducting tip fees now). For each service, the table lists the average fee. It also shows
The range (labeled “IQ” on the graph) of the fees charged. You back up. Quantile? Reduce? What is so surprising?
A typical “range” will show us the lowest and highest amount. But the range helps us remove outliers to get more insight into average charging practices. But if you are a businessman who charges a service fee of $ 1,000 to book an international flight and your customer is not Jeff Bezos or Beyoncé, please tell us your strategy.
Travel Agents Want Transparency On Fees, To A Point
We used domestic and international air tickets as a measure to measure the cost of service by region. It’s like how people are more aware of the price of milk (the price of a plane ticket) compared to an avocado (the price of a train ticket).
Below, you can see the range (a range) and the nature of how hosting agents charge for services by region:
In particular, each region of the United States has a $50 threshold for international tickets. This is hands-down the most popular service fee. For indoor air, every part of the US has a $25 climate except for New England which is $35 (those rebels!).
We are also happy to announce that, not only did we get more data on Canada this year, but Canada also reported the highest domestic and international weather conditions.
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I know. I know, it’s no contest, but it’s the sweet truth, right? What can I say? Canadian travel agents march to the beat of their own drum, with a trend of $50 CAD (~$38 USD) for domestic air and $75CAD (~$57 USD) for international air.
For indoor air, all US regions reported $25 on the low end, and half of the regions reported $50 as the high end of the service charge, while the other reported their highest cost was $30 – $40. (Yes, you guessed it… we used multiple ranges for this data set!)
For international air, there was more variety between the ranges, with New England and the Pacific Ocean charging at the highest end ($88 and $100 respectively).
The second type of travel agent fees we looked at in the study is consulting fees. 24% of accepted agents charge consulting fees.
Travel Agent Abstract Concept Vector Illustration. Tourist Agency, Holiday Travel Planning, Flight Search, All Inclusive Hotel Booking Online, Service Fee, Make Reservation, Abstract Metaphor Stock Vector Image & Art
We break down consulting fees into flat fees, per person fees, hourly fees and more. Respondents were also able to provide a range of their specific fees if their consulting fees varied (according to client, travel chain etc.).
The most popular type of consulting fee is a flat fee: 65% of agents with consulting fees charge a flat fee (median $75), 17% charge an individual fee (median $50), 5% are charge an hourly rate (average of $100), and 13% charge a different product, (“other”).
In our survey, we asked agents if their consulting fees varied. Agents who do not have a set fee are able to write within their fee range (ie I can charge between $30-$50/hr. for a consultation depending on the chain of travel). The chart below shows the breakdown of advisory fees, including the median set, and the average range of agents.
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