Download How we get paid: The industry secret no one wants

This article appeared recently in Travel Weekly How we get paid: The industry secret no one wants to discuss
Studies show that a majority of consumers don't understand how travel agents are compensated, and many
travelers who generally book directly with a supplier online believe they'll be paying extra if they use our
services.
We want every client to understand how our compensation works. We want you to understand that a "direct
booking" made with a tour company, a safari operator, a river cruise company, a cruise line or any other
travel supplier includes a 10% to 15% surcharge in the vendor's published pricing, a fee that is included to
cover the travel agent's commission. Thus, consumers are paying for the travel agent services if they book
directly with the supplier or with an online travel agency (OTA) such as Expedia or Priceline, and the cost
is the same whether or not a consumer uses a travel agent's services.
Customers who book directly with a supplier get few, if any, of the services that a good travel consultant
would provide. Online bookers have no clout; they are working with a commissioned "headset" who is
likely to be based somewhere in Asia. They are relying on that person, who is unlikely to have ever
experienced the product, to be their advocate, to offer advice and to have their back if something goes
wrong.
Can the "headset" tell the consumer why the product might not be the best option, assist with pre- or posttrip arrangements, counsel the traveler on the crucial issue of insurance options?
No. The "headset" merely takes the built-in commission and pockets it for the company, playing consumers
for suckers and insulting their intelligence by pretending they are on the customer's side.
Charging clients who book directly with a supplier a 10% to 15% surcharge within their vendor pricing
models is not exactly ethical, and it is rarely discussed.
When travelers understand that our professional services and counseling come at no additional cost, the
game changes. When consumers understand that they can work with some of the country's most respected
travel consultants on a no-fee basis, the game really changes.
My price is the same price and I can match any price you find elsewhere. I just offer personal services
once I understand what you want…and they are free.
One of them? Or me? Same price.