There are few things that rile up travel agents as much as the heated debate around whether or not they should charge fees, and it was a discussion that continued during a recent panel session at Link Live.
“There’s still a misunderstanding from the clients…who are saying ‘what are you charging me for if you’re not a professional?’,” said Maxim Travel MD Christopher Goddard.
“I think that it is incumbent on us as an industry to raise our profile that way.”
It’s a problem that faces travel agents all around the world, as detailed by the World Travel Agents Associations Alliance (WTAAA) in a report examining how advisors in different regions manage the issue.
The WTAAA called for a shift for travel agents towards what it described as “modern retailing” and reshaping consumer expectations around three key areas: radical transparency and honest pricing at every stage of the journey; offering travellers personalised recommendations based on their preferences and behavioural data; and creating seamless booking processes supported by AI tools and expert guidance.
Fees directly support these three goals by clearly communicating advisor compensation upfront, funding time-intensive research for tailored itineraries and enabling investment into the tech required to streamline planning workflows.
One of the suggestions in the report included using tiered pricing menus (eg. consultation versus full-service retainers), so clients can choose their preferred level of upfront investment, and providing staff training on confidently explaining value propositions, such as offering clients access to exclusive rates and concierge-style perks.
Another option is to try pilot-testing consultation deposits before full-service rollouts.
“While initial hesitation exists in regions like Latin America and Asia-Pacific, agencies that effectively communicate their value proposition report higher client acceptance over time,” the report said.
As Travel Agent Finder’s Anna Shannon pointed out, “Just because you can do something, doesn’t necessarily mean you should. After all, I can cut my own hair, but I don’t. There are plenty of things in life that we outsource to someone else who can do it better.
“Like any service professional they have put years, often decades into mastering their craft, including education, personal investment and constant learning to stay at the top of their game. I often say to travellers, would you work for free?”
The rest of the week
It was a big week of breaking news, kicking off with Web Travel Group’s latest results on Tuesday, including record revenue, EBITDA and TTV. Bookings for WebBeds were close to 20% higher for the H1 period thanks to growth across all regions but gains made in the Americas especially.
A 22% increased TTV to $3.17 billion was also recorded alongside a 20% rise in revenue to $204.8 million and a 21% spike in EBITDA to $94 million.
On Wednesday, we broke the news of Journey Beyond’s continued acquisition spree, purchasing Sailaway Port Douglas, a leading operator of premium reef adventures in Tropical North Queensland.
We also covered the launch of Flight Centre Travel Group’s World360 Rewards and Aurora Expeditions’ Douglas Mawson naming ceremony in Sydney Harbour, making her likely the first vessel to ever be christened in Australia.
Yesterday, we ran an exclusive story on Rail Online, which has gone into voluntary administration and is being led by Grant Thornton Australia. The company was formed in 2022 by former Rail Europe Australasia execs including James Dunne, Lachlan McCallum and Kew Muthalif.
We also covered CTM’s news that its CEO for UK and Europe is temporarily standing down, as it attempts to manage audit contract issues. Yesterday, the business confirmed that it will need to reverse more than $157 million in revenue after irregularities were spotted in contracts, which also include other revenue reversal adjustments in FY25 of up to $40 million.
Travel Daily’s Janie Medbury was on the ground this week reporting at the Festival of Aviation Corporate Travel Summits (FACTS) in Sydney, where she covered several stories including insights from Global Business Travel Association CEO Suzanne Neufang, who shared business travel’s positive trajectory despite slow growth since COVID.
Virgin Australia’s Head of Marketing Libby Minogue also spoke at FACTS, where she revealed that the airline is currently monitoring how Aussie agents are responding to Qantas’ NDC relaunch, before making any major changes of its own.
“We are watching and really trying to understand what this means and how people are feeling about it,” she said. “We will consider it and look at something in the future, but it’s not something that we are looking at right now.”
Meanwhile, AirAsia co-founder and CEO Tony Fernandes appeared on a panel discussion where he shared that while there is no AirAsia Australia on the horizon, it could be an opportunity realised through AirAsia’s new franchise model.
Our page one story on Thursday was also from FACTS, where Qantas International and Freight CEO Cam Wallace discussed how the airline is making tougher calls on how it deploys its plans in overseas markets, such as axing its Sydney to Shanghai route in 2024.
In other news, we spotted the launch of some pretty cool new travel experiences, including the entry of solo travel brand Just You into Australia, and Ponant’s new itinerary, ‘Livorno-Venice’, developed in collaboration with major Italian design houses like Gucci, Bottega Veneta, Brioni, Pomellato and Ginori 1735.
The itinerary is jam-packed with super exclusive experiences, such as Gucci opening the doors to its private archives just for Ponant guests – it’s located in a 15th century Renaissance palazzo and the Palazzo Gucci in Florence. Guests will also enjoy cocktails at the lavish Bottega Veneta Residence in Palazzo Soranzo Van Axel in Venice.
Lastly, I loved the sound of World Expedition’s new Horse Trek Series, which includes six itineraries that explore destinations, including Argentina, Chile, Dolpo and Mustang in Nepal, Kyrgyzstan and Mongolia.
Imagine exploring the rugged wilderness and remote regions of the Himalayan valleys on horseback – it’s the kind of trip you’ll remember for the rest of your life.
That wraps it up for us this week. See you at the same time next week.
Jo.
