FEES FI FO FUM

Canadian and US Advisors Falling Behind on Fees

Travel advisors in Canada and the US are far behind their colleagues around the world when it comes to charging for their expertise.

A new white paper by the World Travel Agents Associations Alliance (WTAAA) says more than 95% of advisors in New Zealand charge professional fees, an amazing statistic which is partly attributed to airline commissions having completely disappeared.

The majority of European advisors (66%) have adopted a pay for service model, with “widespread use of non-refundable consultation deposits.”

For the US, the WTAAA reports 55% of traditional travel agencies charge professional fees through hybrid models combining consultation charges with residual commissions. Canada is a little behind the States, with 50% of advisors consistently applying consultation fees despite confidence gaps reported when presenting pricing models directly to clients.

In other parts of the world, the survey found that fee adoption “remains limited across much of Asia-Pacific: only pockets such as South Korea show momentum. In Latin America cultural expectations continue favouring embedded pricing models instead of explicit advisory charges; however, luxury-focused firms show early signs of moving toward tiered consultancy packages.”

A key element of the report is the WTAA’s assertion that the adoption of transparent professional fees is due to a fundamental shift in traveller expectations.

“Today's travellers want complex itineraries, upfront pricing, and 24/7 support, and they want advisors who can dedicate their full expertise to creating the perfect trip. Professional fees enable advisors to be true consultants, not just instruction-takers," said Otto de Vries, Executive Director for the WTAAA.

"The comprehensive white paper ... confirms that this shift is now mainstream in key global markets. The report shows that rather than relying on increasingly volatile supplier commissions, travel advisors are charging upfront for their knowledge, in the same way lawyers or financial planners charge fees.

“This change allows them to deliver more personalized service, dedicate time to complex itineraries, reinvest in technology tools like AI-driven trip management platforms, and ultimately offer travellers greater value with full transparency.

“This marks a new chapter for our industry,” said de Vries. "We are witnessing a structural transformation where advisors around the world are no longer defined by what they book but by what they know. They're increasingly being compensated like true professionals, which ultimately delivers more value to travellers through personalised planning, transparency and trust.”

While initial client resistance emerged in some markets (70% reported pushback), agencies succeeding with fee implementation focused on clear value communication.

"Clients don't reject fees, they reject poorly communicated ones," noted a German agency in the study.

"When we explain that our €150 deposit covers ten hours sourcing exclusive villas and negotiating group rates, they see the investment value immediately."

The WTAAA research identifies emerging fee models mirroring other trusted professions: consultation deposits, project-based pricing for complex itineraries, subscription memberships for frequent travellers, and corporate retainers.

"This evolution positions travel advisors where they belong, as trusted professionals whose expertise commands fair compensation," added de Vries. "The future belongs to those who confidently charge what they're worth, because great advice isn't free."

You may also like
"Back to the 80s": Travel Agencies, Airlines Grapple with Microsoft Outage
Canadian travel advisors and agencies are picking up the phone as a global Microsoft outage knocks out communications for a second ...
Ensemble Hires Katie Kania as VP, Business Development
Ensemble has announced Katie Kania is taking on the role of Vice President, Business Development. Kania arrives from Norwegian Cruise Line, ...
Advisors Talk About Increasingly Have to "Untangle" Clients' AI Plans
Advisors tell Open Jaw they're increasingly having to fix their clients' AI itinerary mistakes. Advisors say the time consuming task of ...
Canadians Crave a Winter Escape, But Cost Keeps Many Home: Allianz
Canadians are dreaming of a winter escape to a sunny destination but costs are keeping many grounded. New data suggests those ...
Ensemble Launches Member Rewards Program at Annual Summit
Ensemble brought together agency owners, managers, preferred partners and industry leaders for its annual Ensemble Summit, held November 4–6 at the ...

Talk Back! Post a comment:

Jim Byers

Contributor

Jim Byers is a freelance travel writer based in Toronto. He was formerly travel editor at the Toronto Star and now writes for a variety of publications in Canada and around the world. He's also a regular guest on CBC, CTV News, Global News and other television and radio networks.