Q: What's the first step for advisors who want to start charging fees?

Wendy Paradis is clear: "If you haven’t done this before, it’s hard work. The very first step is making the commitment to start." Peter Lobasso recommends: "We provide our members with a template fee agreement for clients. This helps structure your fee model and opens the conversation by clearly explaining what you will do, why it’s valuable, and what the client receives." Andrew Bowman suggests: "Think like a modern retailer. Look at how other professionals and service businesses structure their fees, pricing, and client communications, and adapt those best practices to your own business."

Question 1

Why are professional fees becoming a critical part of a travel advisor's business model?

Accepted Answer

Professional fees are emerging as essential for financial stability, business sustainability, and industry legitimacy.
"We’re seeing tour operators wanting to reduce distribution costs, which means travel agents are receiving ever lower commissions - sometimes even zero. As a result, travel agents must charge professional fees to their customers to remain viable." – Walter Schut, ANVR

This is a fundamental shift in the business model.
"One of the biggest lessons from the COVID pandemic was that your expectation of commission income can disappear overnight. Even if you’ve done all the work and provided all the support to your clients, you might not receive that commission due to factors beyond your control." – Peter N. Lobasso, ASTA

Key reasons why professional fees are now critical:

Declining Commission Structures: Suppliers now often pay little to no base commission, leaving advisors uncompensated for their time unless they implement direct-to-client fees.
Changing Client Expectations: Travellers increasingly seek highly personalised, immersive, and complex experiences, which require hours of planning and deep destination knowledge.
Advisor Professionalisation: Charging fees reinforces the advisor’s role as an expert consultant – more akin to a financial planner or attorney than a booking agent.
Business Independence & Predictability: Fee-based income allows for steadier cash flow, which is not subject to supplier policies, market shocks, or economic downturns.
Strategic Positioning in an AI-Driven Market: As AI continues to grow, it is increasingly important for human advisors to differentiate themselves as experts offering judgment, personalisation, and risk mitigation – not just booking services. Charging fees helps reinforce this distinction and highlights the value of human insight over machine-generated options.

Agencies that implement structured fee models have reported:
Up to 30% increase in per-transaction margins (New Zealand)
Higher client commitment
Reduced cancellations and time-wasting inquiries

Question 2

What's the biggest barrier to implementing professional fees?

Accepted Answer

Surprisingly, it’s not client resistance – it’s advisor confidence.

"Advisors themselves are their own biggest obstacle; often, they are more nervous about charging fees than their clients are. Advisors really need to make a commitment to this approach, develop scenarios, and practise how to present fees until it becomes second nature." – Wendy Paradis, ACTA
"Our biggest learning in New Zealand was that most of the hesitancy came from the travel advisors themselves. In reality, customers generally accepted the need to pay a fee for the work being done." – Andrew Bowman, NZ Travel Brokers/TAANZ

The solution? As Paradis suggests:

"Education, transparency, commitment, and then training and practice, practice, practice."

Question 3

How should I present fees to clients without seeming apologetic?

Accepted Answer

"Don’t apologise for charging a fee. Instead, be confident: 'I charge a fee because I provide you with expert advice.' In my experience over the past twenty years, when you communicate your value clearly, clients find that reasonable." – Walter Schut, ANVR

He emphasises positioning fees as value delivery:

"If you pay a fee, I work for you. My goal is to find you the best product, not the one that benefits me via commission. If my only compensation comes from a supplier, your interests may not be best served." – Walter Schut, ANVR

Wendy Paradis adds:

"The fee ensures I can dedicate the time and resources needed to deliver exceptional value and service, not just before you travel, but during and even after your trip."

Question 4

What types of fees are travel advisors currently charging around the world?

Accepted Answer

Fee types differ by region and sector, but common models include:

Consultation Fee: A fixed, often non-refundable fee charged before planning begins
Project-Based Pricing: Based on the complexity of the trip (e.g., group travel, safaris)
Trip Management Fee: Charges based on time investment; transparent pricing strategy
Retainer Model: A monthly or annual fee for continued access/support
Hybrid Model: Base consultation fee + commissions where applicable
Subscription/Concierge Services: Tiered membership with unlimited planning & premium perks
Transactional Service Charges: Fee per service booked (e.g., visa, ticket, hotel)

"The trip management fee in New Zealand was all about transparency. There have always been fees in a booking, sometimes paid to suppliers. We simply introduced a fee that was charged directly by the advisor, making it clear what clients were paying for." – Andrew Bowman, NZ Travel Brokers/TAANZ

Question 5

Are fees more common in certain regions or types of agencies?

Accepted Answer

Yes. Global patterns vary significantly by geography and niche:

High Adoption Regions

New Zealand: >95% of agencies charge professional fees.
Europe: 66%+ usage, especially in Northern and Central Europe.
USA: 55% of traditional agencies; common use of hybrid models

Low Direct Fee Usage

Asia (except South Korea & NZ): Many agencies still rely on supplier commissions.
Latin America: Fees are often hidden in package prices due to cultural and consumer resistance.
South America: Most fees are in luxury or corporate TMC segments.

Corporate Travel vs. Leisure

Corporate Travel Management Companies (TMCs) around the world (South Africa, Canada, South Korea) have long embraced transaction or retainer-based fees.
Leisure advisors are increasingly adopting consultation deposits and hybrid models, with growing success in retention and profitability.

Question 6

How did New Zealand achieve 95% adoption so quickly?

Accepted Answer

New Zealand’s transformation is a powerful case study. Andrew Bowman explains:

"After COVID, the industry in New Zealand had halved in size. Those who remained realised the only way forward was to adapt and embrace change. The silver lining was that everyone was in the same situation, which spurred collective action."

On building trust:

"We built enormous trust with our customers during the pandemic. New Zealand’s borders closed early and reopened late, but throughout that period, advisors supported travellers, helping to repatriate about $2 billion NZD in bookings. That loyalty created a foundation for introducing new fee structures."

On seizing opportunity:
"At first there was a lot of trepidation, but people began to see charging fees as an opportunity - and ultimately a necessity for survival."

Question 7

What if my competitors aren't charging fees? Won't I be at a disadvantage?

Accepted Answer

Not necessarily. Charging fees can be a competitive advantage when positioned well.

Yes, in price-sensitive markets (e.g., Southern Europe, Latin America, and South Korea), advisors can feel pressure to undercut fees.

However, agencies that remove fees to “stay competitive” often:

Chase unqualified leads
Overwork without compensation
Limit their ability to reinvest in quality tools or staff

Agencies charging professional fees, by contrast, report:

More committed clients
More predictable revenue
Higher conversion rates with high-intent travellers
Greater control over branding and service tiers

Peter Lobasso from ASTA addresses this directly:

"As with any profession, the cheapest option is rarely the best. It’s all about communicating what makes you different. The fee itself is just a small part of the picture; what matters is the value you bring."

Walter Schut adds practical advice:

"You will lose some customers - but usually, those are not your best clients. When you clearly explain your fee, most clients who value your advice will stay. It’s a positive filter for finding the right clients."

Question 8

What's the first step for advisors who want to start charging fees?

Accepted Answer

Wendy Paradis is clear:

"If you haven’t done this before, it’s hard work. The very first step is making the commitment to start."

Peter Lobasso recommends:

"We provide our members with a template fee agreement for clients. This helps structure your fee model and opens the conversation by clearly explaining what you will do, why it’s valuable, and what the client receives."

Andrew Bowman suggests:

"Think like a modern retailer. Look at how other professionals and service businesses structure their fees, pricing, and client communications, and adapt those best practices to your own business."

Collaboration & Disintermediation

Topic: Collaboration & Disintermediation

Rethinking Professional Fees – A Global Look at How Travel Advisors Are Charging for Value