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Service fees: How much should you charge and what to do if clients push back

Post date: Feb 29 2024

Date: Feb 29 2024

By: Cindy Sosroutomo

TORONTO — Carol Murray usually doesn’t make New Year’s Resolutions, but at the end of 2023 she vowed to do just one thing: to always charge fees for her travel services.

The Toronto-based travel advisor and owner of Your Vacation Home, who prior to 2024 was inconsistently charging clients here and there, tells Travelweek that the pandemic “changed everything” – including her take on service fees. 

“We found out how vulnerable we advisors are,” she says. “If our clients have to cancel their trips, trips that we poured hours into creating, we have to still be paid for our services, regardless if the trip happens or not.”

Now, Murray charges an amount each time, based on how much work is required and the number of passengers. “It’s $250 for up to four people and it will increase from there,” she says, adding that she’s no longer concerned about possible push-back from certain clients.

“In some cases, travel advisors don’t get that much from the supplier and yet we’re doing tons of work for the client. That is not sustainable for a business,” says Murray. “We are professionals and experts and we need to be paid for our time. All advisors need to charge fees, finally making it a norm across the industry.”

WHY ARE AGENTS STILL NOT CHARGING FEES?

In a perfect world, every travel advisor would be charging service fees to compensate for their time and hard work. But the reality is, only a small percentage of advisors are consistently doing it – why?

“The biggest reason is confidence,” says Zeina Gedeon, President and CEO of Trevello Travel Group. “For a very long time, travel advisors did not believe they should or could charge service fees because they were getting commissions. There are also many advisors new to the industry who are concerned about building their client base, and others who’ve been working with clients for a long time and don’t want to now implement a fee.”

Gedeon does note, however, that more and more advisors are implementing service fees post-pandemic.

“Many advisors re-evaluated their businesses during the pandemic and realized that they cannot depend solely on commissions. They worked so hard to cancel, rebook, cancel, rebook flights and in the end everything got cancelled, and they did all this for no fees and no commission! They realize now the true value of the services they offer,” says Gedeon.

Flemming Friisdahl, Founder and CEO of The Travel Agent Next Door (TTAND) is also seeing an increase of travel advisors charging fees.

“100% we are seeing more fees coming in, as a percentage of sales. However, it’s still a fairly small number of advisors doing it routinely. But more and more are becoming comfortable charging for their time. I wish it was more the norm than not, but we are getting there,” he says.

HOW MUCH SHOULD ADVISORS CHARGE?

When it comes to how much a travel advisor should charge a client, there’s no one-size-fits all; it all boils down to what the advisor is comfortable with, how much they value their time, and the type of booking being made.

“The amount varies based on an advisor’s experience, expertise, location and the type of booking,” says Gedeon. “However, we give our advisors some general guidelines when they consider charging service fees, around 10%-20% of the total cost of the trip, or a flat fee based on the component of travel, like flights, hotel, FIT and vacation package. Every advisor is different, and they should find a fee structure that works best for them and their business model.”

Friisdahl, who sees both ends of the scale with some advisors charging up to $2,000 for a J class airline ticket while others charge nothing, says that TTAND offers a model on service fees though it’s 100% up to the travel advisor to follow it or not. But he’s quick to add that it’s not so much about the amount, but rather about getting consumers used to the idea of a service fee in the first place.

“Remember when we all used to fly from YVR to YYZ and we had a meal included? And now the airlines charge for meals. Nobody barks at paying for this because it has become the norm. So we have to ask everyone to jump on the wagon and make sure consumers know that a professional travel agent’s time is worth money,” says Friisdahl.

HOW DO YOU BROACH THE SUBJECT?

It can be an awkward conversation when mentioning to the client what your service fee is, especially if it’s an existing client and you never charged one before. This is why Murray tells them up front, before she starts working on building their itinerary, to avoid any surprises in the end.

“I think it’s more expected now and better received because clients understand that they need us more than they realized! They also understand that we should not ‘work for free.’ Those days have passed,” says Murray.

Gedeon also agrees that starting with transparency is key: “Be upfront about your fee structure from the beginning. Clearly explain that as a professional travel advisor, you provide personalized service and expertise that go beyond simply booking flights and accommodations. Emphasize to clients that the fees are a reflection of the time and expertise that goes into planning their trip, and remind them that they are paying for a personalized service that will save them time, money and hassle in the long run.”

Friisdahl adds that travel advisors should treat a service fee the same as they would for other extra costs, like airline taxes and fuel surcharges: “It is simply part of the cost of travelling! The advisors I’ve talked to just make it part of the entire conversation and they don’t stop to make a big deal about it.”

WHAT IF THE CLIENT PUSHES BACK?

It’s to be expected that some clients will push back on the idea of paying a service fee, especially if they can find another travel advisor who doesn’t charge one at all. But if this happens, Friisdahl says honesty can be the best policy.

“Tell them the truth, that you’re not paid commission and this is why you’re charging a service fee. Tell them that your time is worth money – the truth is the best way to explain it,” he says. 

Gedeon adds that the key to handling clients who don’t want to pay the fee is to focus on the benefits of working with a travel advisor and to address their objections with empathy and professionalism.

“Advisors need to be confident and show the client the value in working with them, focusing on how their services can save the client time and alleviate stress when planning their trip,” says Gedeon. “The personalized service they offer, their access to exclusive deals and amenities, the knowledge they have for the destination, and the support they provide the client while planning the trip, while they’re on their trip and during any emergencies that may arise – all of this justify the cost of your service fees and help retain clients who may initially be resistant to paying them.”

WHAT IF YOU’RE CHARGING TOO LITTLE?

For travel advisors who have already implemented a service fee, how do they know if they’re not charging enough? And how do they raise their fee without scaring away their existing clients?

Gedeon recommends four tips:

• Re-evaluate : “We recommend re-evaluating your fees on a yearly basis. You should be continuously researching what other advisors in your area or niche are charging for similar services. Assess your value proposition to make sure your fee structure reflects the value your client receives. And always take into account your clients’ feedback and consider their expenses.”
• Space it out : “Rather than implement a significant fee hike all at once, consider gradually increasing your fees over time. This allows clients to adjust to the new pricing structure and help minimize the risk of scaring them away.”
• Give notice : “Always give clients advance notice of any fee increases, and explain the reasons behind the change. This demonstrates transparency and allows clients to prepare for the adjustment in pricing.
• Get feedback : “Advisors should keep track of clients’ responses to the fee increase and be prepared to adjust their pricing strategy if necessary. Solicit feedback from clients to understand their perspectives and address any concerns they may have.”

This article appears in the Feb. 29 issue of Travelweek. 

Tags: Lead Story, TTAND

Cindy is Deputy Editor at Travelweek and has worked for the company since 2007. She has travelled to more than 50 countries and counts Kenya, Morocco, Thailand and Turkey among her favourite destinations.

Cherry Picked!

Hand-selected articles, guides, and more from the makers of Check Cherry, designed to help your business grow and flourish.

Charging Your Clients Travel Fees [Beginners Guide]

If you travel to provide services to your clients, there is a good chance you've considered implementing travel fees. In this article, we'll cover everything you need to know about travel fees and provide some actionable advice to ensure you're doing it right.

What is a travel fee?

A travel fee is an additional fee added to your standard pricing. Often, travel fees vary based on the distance one travels. The further one travels, the higher the travel fee. 

👉 Use a quality online booking system with travel fees built-in, like Check Cherry, so you can automatically calculate and charge clients travel fees. It saves a lot of time and ensures accurate billing.

Why do people charge travel fees?

If you package your services, there is a good chance you've factored some travel into your pricing. However, if a client needs you to drive 62 miles, your standard pricing may no longer be profitable. Travel fees allow you to service a larger geographic area by offering clients the option to compensate you for travel.

Should I charge travel fees?

If you're open to traveling further distances to work and leveraging packages to sell your services, you should charge travel fees because they will ensure you are operating profitably.

If you are unwilling to travel outside a smaller area or send proposals with custom pricing to each client, you might want to lump all costs into one price to ensure each booking is profitable.

👉 Travel fees give more people the opportunity to hire you because it expands the geographic area you are willing to serve.

Distance-Based Travel Fees

We often see our customers include a free travel range with all packages. For example, the first 30 miles are free, and if they must drive more than 30 miles, it's $2.00 per mile. Distance-based travel fees are outstanding because they are granular and account for time and fuel costs best.

Flat Rate Travel Fees Tiers

Some people like to charge a flat fee for travel. For example, one's travel fee structure might look like this:

0-25 miles - FREE

25-50 miles - $35 Flat Fee

50-100 miles - $125 Flat Fee

This option is much less popular. One positive aspect is you can make one tier meaningfully more expensive than another.

Round-trip or one-way?

The majority of Check Cherry customers charge one-way travel fees. If a wedding venue is 55 miles away, they charge a travel fee based on 55 miles (single trip). Another option is calculating based on the length of getting to and from the service address (round trip).

One-way calculations make it easier for the client to understand your fee structure because most clients will not think to double the distance. If you opt to charge on a one-way basis, consider increasing your per-mile fee to account for the trip back home.

On the other hand, the round trip calculation will make the per-mile fee appear lower than a single trip fee. This may be helpful during the initial sales process. Round-trip is also a more accurate representation of actual costs associated with you traveling on behalf of a client.

Should I just use the rates provided by the IRS?

Each year, the IRS releases Standard Mileage Rates . In 2022, the amount was 58.5 cents per mile. Check with the IRS or your tax professional each year and track mileage for any business purposes. Regardless if you charge travel fees or not, you can deduct the cost per mile that you travel for business. Talk to your accountant about how to do it right.

Remember that the number provided by the IRS each year is based on an annual study of the fixed and variable costs of operating an automobile. It's probably a mistake to charge clients based on rates set by the IRS.

How much should I charge my clients for mileage?

This answer will vary by market, service type, and ideal customer profile. Here are three factors to consider when calculating a travel fee:

Travel time

One of the more significant expenses is your time, and travel will effectively increase the time you need to dedicate to complete your service. If you have staff, you probably want to pay them for travel time to ensure they want to work a booking or event.

Gas prices are outrageous. Do a rough calculation to see what it goes to drive 15, 25, or 50 miles based on your fully-loaded vehicle.

Vehicle wear and tear

The more you drive a vehicle, the more it costs to own due to depreciation, interest on your loan, insurance premiums, maintenance, and repairs. Estimates can be as low as $0.21 per mile and more than $0.62 per mile. You can use this handy calculator to get an estimate for your vehicle.

Example Travel Fee Calculation

Here is an example of how one might estimate the true costs of travel.

Fuel - $0.206 per mile

Cost per gallon of fuel: $4.33

Miles per gallon of fuel: 21

Fuel cost per mile = $0.206 cents per mile ($4.33 / 21)

Wear & Tear - $0.66 per mile

5 Year Vehicle Wear and Tear = $49,515

Vehicle Wear and Tear Per Year = $ 9903 ($49,515/ 5)

Per Mile Wear and Tear = $0.66 ($9903 / 15,000 miles)

Staff Costs - $0.517 per mile

Distance to Venue: 38.7 Miles

Travel Time: 1 Hour

Hourly Rate: $20

Cost per mile = $0.517 ($20 / 38.7 miles)

Estimated Travel Fee

$1.38 per mile ($0.206 + $0.66 + $0.517)

Automatic Travel Fee Calculations

Watch how Check Cherry makes it easy to  calculate and charge travel fees . You can create multiple travel zones, limit bookings outside your service area, and more.

People will ❤️ how easy it is to book you online.

Try Check Cherry free for 14 days, no credit card required.

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"I found Check Cherry when doing a search for something to schedule mini sessions for my photography business. It's the perfect end to end online booking and payment solution. I has made my work so much easier, and its convenient for my clients to click to select their session, sign the contract, and pay. I love it! Not to mention, their customer service is on point. Quick response time and open to suggestions. Fantastic!"

Trip Planning // Getaways

How Much do Travel Agents Charge?

How to navigate the waters with a travel agent.

With trip bookings just a finger's touch away on your smartphone, you might think using a travel agent is an overpriced service for people who are too lazy to plan a trip themselves. However, a travel agent's insider knowledge of your destination can mean the difference between a "pretty good"trip and a once-in-a-lifetime experience available only to travel agent clients. You might even save more money than booking bargain vacations online.

How does a travel agent work?

The advantage to using a travel agent goes beyond insider knowledge. Although you can research YouTube videos and "ask a local" sites to find out the best off-the-beaten-track adventures, travel agents goes this one better. Their secret? Connections. Your travel agent can hook you up with one-of-a kind experiences, such seeing your destination through the eyes of archaeologists and architects that moonlight as tour guides. Tour guide connections with hotels, cruise lines and other providers can mean garnering free upgrades, credits or other perks that aren't offered to the general public.

• How to Book Cheap Flights
• Do Travel Agents Save You Money?
• How to Cruise for Free

When good trips go bad

The best perks of using a travel agent come with the unexpected monkey wrench. When bad weather grounds your plane, kick back in the hotel lounge or take a taxi to see a few sights while your travel agent tweaks your itinerary. From VIP phone line access to bumping you to the top of waiting lists or getting you a seat on a flight that might say "full," a travel agent's connections, expertise and diligent work lets you relax.

How does a travel agent make money?

Travel agents make money in a few different ways.

Commission: Your travel agent receives a percentage from the hotels, tours and other travel you book through him. This doesn't raise your costs. When you book online, the commission is already built into the price you see and is paid to the online provider. The amount your travel agent gets is exactly the same as what you see online. The only difference is your travel agent might have a relationship that can score you some perks for the price you'll pay, and he sometimes has access to deeper discounts.

Service fees: In the early 2000s, airlines stopped paying commissions to travel agents. Because they lost this stable part of their income, some agencies started charging service fees for the expertise and time to book your trip. Service fees could include a $25 to $50 fee per airline ticket, or up to $500 for full itinerary design and booking. Some agents charge by the hour, but not all agencies charge service fees.

Net based pricing: Some venues give your travel agent their bottom line price, and your travel agent makes the difference between that price and what you are charged.

Pros and cons of booking through a travel agent versus online

• A travel agent has direct access to specials, upgrades and deeper discounts than those offered online to the general public, based on her relationships with airlines, hotels and tour companies. 
• Your travel agent knows the reputation of airlines, hotels and tours. On your own, you might book with a bargain airline that has a reputation for delays and missed connections. Your travel agent can steer you to a better option.
• Your travel agent can manage unforeseen problems like missed connections due to weather delays while you take it easy.
• Not all travel agents have after-hours service. Your travel agent may or may not be available if problems happen outside of business hours. 
• You might be able to score a better deal on your own. When you're planning your honeymoon or exotic getaway, you're best off using a travel agent. When you're flying across the country for a weekend away, you might find the best deals online.
• Not all travel agents are equal. You can spend hours researching and vetting the best travel agent for your needs. Travel agents don't need to be licensed in some states, and some people are agents as a part time gig. The best way to find a reputable travel agent is from friends who recently used one and are gushing happily about their trip. 

More Travel Content

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• 5 Things to Look for in a Travel Buddy
• What are Hacker Fares?
• How to Travel the World for Free
• Travel + Leisure: Why use a travel agent?
• Gifted Travel Network: How and how much do travel agents get paid?

About the Author

Jodi "Jato" Thornton

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The 2020 Independent Travel Agent Fee Report [+Infographic]

Have you heard? HAR’s 2020 Fee Survey results are in! With over 1,000 survey responses, HAR amassed a mountain of data. So much so, that we’re able to parse out results for hosted travel agents and independent travel agents.

Wait a minute. Aren’t hosted agents independent contractors? Well, yes. It gets so complicated! But for the purposes of this article, when we say “independent travel agents” we’re referring to agents who have their own accreditation.

In 2020, 16% of our respondents reported they were independent. Here’s a bird’s-eye view of this segment of travel agents:

Did this whet your appetite? I sure hope so, because a smorgasbord of data awaits! And if video is your preferred way to intake information, we've got that for you too:

But before we dive in, I want to emphasize that all this data was collected pre-coronavirus. We’re not sure how COVID-19 will impact fees, but we’ll find out with next year’s survey.

⭐️ HAR ARTICLE HIGHLIGHTS: ⭐️

• Fee Survey Primer

How Many Independent Agents Charge Fees?

• What Service Fees do Independent Agents Charge (and How Much?)
• What Consultation Fees do Independent Agents Charge (and How Much?)
• Agency Models of Independent Agents, and How it Relates to Fees

Experience and Likelihood to Charge Fees

Independent agents who do not charge fees.

• Independent Fee Survey Takeaways

A Glossary of Terms

Infographic: independent travel agent fee report overview.

Here’s the visual. It’s really pretty, but we don’t recommend printing it out unless you want to wallpaper your entire house or to use it as gift wrap (a whole lotta great data = a whole lotta paper).

You may notice that trends among independent agents are wildly different than those of hosted travel agents. How would you know such a thing? From our recently-published results, “ The 2020 Hosted Travel Agent Fee Report .”

HAR’s Fee Survey Primer

Our survey explored every nook and cranny of fee charging practices. But before we dive into results, let’s make sure we’re all on the same page when it comes to definitions.

In our survey, we explored two types of fees:

• Service Fees: Typically flat fees per transaction/ segment of a trip (i.e. car, rail, air, hotel, change fee etc.).
• Consultation Fees: Commonly pertain to time/expertise used to plan, research, or book a trip and/or support clients during their trip.

Additionally, in this report we’re going to throw around words like median, mode, and interquartile range (the scariest one, in my opinion).

I understand you probably didn’t get into the travel industry because of your love for statistics, or for an added edge in your Scrabble game. But don’t worry, all you need to do is click on the word and you’ll be taken to a short lay-person-friendly definition. You can try it right here! Interquartile range .

Okay, back to our regular programming.

Okay, so the intro had a spoiler: 75% of independent travel agents reported charging fees in 2020. This is a 4% increase from our last fee survey in 2018, when 71% of independent agents reported charging a fee. 1

Among independent agents who charged a fee:

These results were close to our prior survey, with a 5% increase in the likelihood to charge service fees only, no increase in the likelihood to charge consultation fees only, and a 1% decrease in the likelihood to charge both a service fee and consultation fee.

Independent travel agents were much more likely to charge fees than their hosted counterparts (75% compared to 52%). The “both” category (charging a service fee and consultation fee) experienced the most significant difference, 31% among independent agents, compared to only 16% of hosted agents who charged both a service and consultation fee.

While independent agents were much more likely to charge fees than their hosted counterparts overall, the growth in percentage of agents who reported charging fees in 2020 was equitable, with a 4% increase among independent agents reporting they charged fees and a slightly higher 5% increase among hosted agents agents.

Why Do Independent Agents Charge Fees?

This year was the first year we asked why travel agents charged fees. The top 4 reasons to charge fees in 2020 were as follows:

Independent agents’ primary motivation to charge fees was to value their time and expertise, leading the 2nd most common response by 55%. These top 4 responses are identical to hosted responses in rank.

If you’re curious to dig into why you might consider charging fees, we have a ton of resources for you:

• Listen to our Travel Agent Chatter podcast to hear how seasoned destination specialists Madeline Jhawar , owner of Italy Beyond the Obvious, and Andres Zuleta , owner of Boutique Japan. Both agents earn a majority of their income from fees rather than commissions.
• Do you need a little extra encouragement to charge fees? Check out HAR’s guide to charging fees here. ]
• Want to refresh the fee-charging practices you already have in place? Check out these creative fee strategies .

What Service Fees Do Independent Travel Agents Charge (and How Much?)

Overall, 64% of all independent agents charged a service fee 2 . This is a 4% increase from our prior results.

When homing in on the segment of independent agents who reported charging fees, 85% reported charging a service fee. Below is a breakdown of the types of bookings for which independent agents charged, the median fee, and the interquartile range (IQ range):

Fewer independent agents charged for FITs in 2020 than in 2018 (40% compared to 54%). Cruises also experienced a double-digit drop in response rate (an 11% decrease), with only 13% independent agents charging for that booking type in 2020. 3

Alternately, independent agents reported charging fees for international air at a much higher rate this year, responding at a 24% higher reporting rate in 2020 compared to 2018 (72% compared to 48% respectively).

In the top five booking categories, there was an 8% increase in fees for rail tickets and a 7% increase for frequent flyer fees 4 .

Compared to hosted agents, independent agents were the same or more likely to charge for services in every category. (See infographic for more details)

What Consultation Fees Do Independent Agents Charge (and How Much?)

For this section, we continue to focus on independent agents who reported charging fees. Among this segment, 42% reported charging consultation fees. This is a 1% decrease compared to the same segment in 2018.

Here’s a breakdown of consultation fees with the percentage of agents that reported charging that type of fee. Where we had enough data, we also included the median fee and the range of fees charged:

Flat fees were on trend with 2018 results with a modest 1% increase in those that charge a flat fee in 2020. Among those who charged flat fees:

• 96% charged a one-time flat fee
• 4% charged a flat fee per day

Plan-to-Go Fees

This year HAR added a “plan-to-go” fee option to our survey in addition to our usual suspects listed above.

A plan-to-go fee is an upfront payment agents require from clients in order to render their services. The plan-to-go fee—in full or in part—is then applied to the booking if the traveler decides to book through the agent.

Of the independent agents who charge fees, 35% reported charging a plan-to-go fee. Among those who charged this fee:

• 60% applied the entire fee to the booking
• 20% applied a certain dollar amount to the booking
• 20% applied a certain percentage to the booking

Agency Models of Independent Agents

“All-Inclusive” and “FIT” were the most common niches among independent respondents

Independent travel agents varied in how they conducted business. Here’s a big-picture on the business models of independent agents including location, hours worked, niche and how these factors impacted their likelihood to charge fees:

Home Based vs Storefront

Independent agents were much more likely to work at a storefront than their hosted counterparts: While IA only accounted for 16% of survey respondents, they accounted for 69% of the total storefronts in our survey.

Among independent agents only, 36% were storefront and 64% were home based. This is a 6% increase in storefront agencies from 2018 results.

Independent agents who worked at storefront agencies were also much more likely to charge fees than their home based peers: 89% compared to 68%. This trend is consistent with hosted results as well in 2020.

It's also worth noting that 69% of all storefront agencies were attributed to independent travel agents in this year’s survey. Additionally, independent storefront agencies had significantly higher median experience that hosted storefront agencies, 28 years compared to 15.5 respectively. (We'll chat on how experience alone impacts fees soon!)

Corporate vs Leisure

In 2020, 9% of independent agents who completed the survey were corporate agents. This is a 7% increase from 2018, when only 2% of independent agents were corporate.

Corporate agents were more likely to charge fees than their leisure counterparts, 80% compared to 75% respectively.

While independent agents were more likely to charge fees than hosted agents overall, corporate independent agents departed from this trend:

However, independent corporate agents departed from overall fee-charging trends, with fewer from this segment charging fees compared to their hosted counterparts: 80% compared to 92% of hosted corporate agents.

Full Time vs. Part Time

84% of independent agents worked full time (30+ hours). This is much higher than hosted agents, where only 59% reported working full time.

Independent travel agents were rewarded with a greater number of clients: In 2020, agents’ time investment had a direct relationship to the number of clients. 62% of independent travel agents reported having 100+ clients, whereas only 29% of hosted agents reported the same in 2020.

Fee Practices According to Niche

The top 5 niches among independent agents were:

• All-Inclusive
• Ocean Cruises
• Weddings/ Honeymoons

Three of these niches—FIT, Groups and Weddings/Honeymoons—were also among the top 5 niches to charge a fee. Below is a list of niches most likely to charge a fee and the response rate of independent agents who reported charging 5 :

Weddings/ Honeymoons, is new to the top 5 niches most likely to charge, with many more independent agents reporting charging a fee in 2020 than 2018 (91% compared to 53%). (See our full infographic for complete details on niche and likelihood to charge fees.)

ASTA Membership & Likelihood to Charge Fees

Industry engagement had a strong correlation to charging fees. 74% of independent agents reported belonging to a travel association, with the majority belonging to ASTA and/or ASTA-SBN (52%).

Independent agents who belonged to ASTA and/or ASTA-SBN were more likely to charge fees, 76% compared to 52% overall.

Independent agents reported a significantly higher median experience in 2020 than in 2018, 19 years at current compared to 13.5. Furthermore, independent agents also had significantly more experience than their hosted counterparts, who only reported a median 5 years experience.

The median age among independent agents in 2020 was 59, in comparison to their hosted counterparts whose median age was 54 years.

Following trends across all travel agent segments, new independent agents were less likely to charge a fee: only 68% of new independent agents charged fees 6 compared to 76% of experienced agents.

Below, the chart compares experience to the likelihood to charge fees for independent agents. These trends are similar to previous years’ results.

25% of independent agents reported they did not charge fees. Among this segment, here are the reasons they reported charging no fees 2020, ranked below:

Client retention was the primary reason independent agents chose not to charge fees in 2020 (compared to “I might not be able to attract new clients” in 2018). Another notable change from 2018’s results is that in 2020 independent agents were much less concerned about lack of experience: While that reply ranked 6th in 2020, it ranked 2nd in 2018.

It’s also interesting to note that among all respondents (hosted and independent agents) who did not charge fees, only 9% were independent agents.

Do Independent Agents Plan to Charge Fees?

This was the first year we asked about future prospects of charging fees. When asked if they planned to charge fees in the next 12 months, only 8% of independent agents replied “yes,” 46% replied “maybe,” and 46% replied “no.”

While the trend is similar to hosted agents, independent agents were less likely to consider charging fees in the next 12 months.

HAR had a lot of help in drawing agents to our survey, and we couldn’t have provided this data without them. Who are these good samaritans of the travel industry?

• Nexion Travel Group
• Oasis Travel Network
• Travel Planners International
• Travel Quest Network
• Uniglobe Travel Center
• Outside Agents

Further Resources

Stay tuned because there is a heckuva lot more information to come, including a report that digs into the relationship between demographics and charging fees! We'll keep you posted!

• Interquartile Range (IQ): A typical "range" shows us the lowest and highest fee. But the interquartile range helps us remove outliers in order to get a clearer picture of moderate fee-charging practices. This isn’t to discount your fee strategy if you charge $1,000 for fee for international air, or if you only charge $2 to grandma Matilda because she pays you (literally) in dimes. It’s just to help give a clearer picture of what the “average” hosted agent is charging. For those really nerding out, the Interquartile Range measures the range between the 25th and 75th% percentile. This means the range excludes the data from the lowest 25% and the highest 25%, eliminating the lower and upper outliers and offering a picture of more moderate fee charging practices.
• Median: The median is the middle value in the set of numbers. (That’s right, the middle child of data!) We used the median value to determine age and years of experience. This helped us get a clearer picture of the “average” agent, by eliminating outliers that skew the data.
• Median Range: When we offer a median range the numbers reflect the spread between the most common lowest fee and the most common highest fee reported by our respondents in our survey.
• Mode: The mode is the number that appears most often in a set of numbers. For our purposes, it means that it was the most frequently-occurring response among travel agents who answered the question. We used mode to determine the most common amount charged for certain service fees, in order to give a clearer picture of what the “typical” agent is most likely to charge.
• Why no 2019 results? We conducted our 2018 at the end of year and published the results early 2019. After that, we modified our survey schedule, releasing it in Jan. 2020 rather than late 2019 ↩
• Of those, 49% charged both a service fee and consultation fee ↩
• Four additional services experienced a decline in response rate in 2020: Exchanges, 3% drop; Refunds, 6% drop; Special Coupons and Shore Excursions, 1% drop. ↩
• The remaining categories—accommodation only, car only, cancellations, and ancillary services—experienced a higher response rate for fee charges in 2020 compared to 2018. Tour packages were the same in 2020 as in 2018 ↩
• River Cruise and Adventure Travel ranked 2nd and 3rd respectively, but we did not have enough data on those specific segments ↩
• We consider “new agents” those with fewer than 3 years experience ↩

About the Author

Mary Stein has been working as a writer and editor for Host Agency Reviews since 2016. She loves supporting travel advisors on their entrepreneurial journey and is inspired by their passion, tenacity, and creativity. Mary is also a mom, dog lover, fiction writer, hiker, and a Great British Bake Off superfan.

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A Quick Guide to Charging Fees as a Travel Agent

By Travefy Academy

Should you charge a planning fee to your clients? This is a popular question among many travel agents whether you’re new to the travel industry or a veteran.

In a previous Travefy Academy webinar, we chatted with Sandy Saburn, VP of Sales at Gifted Travel Network and she shared why travel agents should always charge planning fees. To watch this webinar, click here or watch below. In the webinar, she walks through the different types of fees and how to charge your clients.

If you would rather read about fees, scroll past the video for more information!

Why charge a fee?

First, the most important question: Why even charge a fee? 

The simple answer is because you are the expert, your clients are using your expertise to help plan their travel. Take for example when you go to the dentist. You may have to pay for additional add-ons like fillings or extra dental work, but you still have to pay the fee to just see the dentist first.

As a travel agent, you aren’t just booking travel (that’s only part of the job), you are also researching, offering expertise, and planning so you should get paid for that too because that can end up being hours upon hours of your time. If you aren’t charging a fee, you will only earn commissions on what you book, which is still amazing but when you have a fee coming in too that’s just another source of revenue for your business.

Think about it this way: Let’s say you book a trip and earn a $1,000 commission. If you were to include a service fee of $250, that’s an extra 25% to the bottom line! It also helps you feel empowered to go above and beyond for your clients because you’re getting compensated to do so.

Another reason why many travel agents charge fees is because it can help weed out the “window shoppers” to your actual paying clients.

How to decide your fee price.

Most likely the hardest part is trying to put a price tag on your expertise. If you’re new to the industry, you might undervalue yourself and that’s okay if you want to work on raising your fees in the future but don’t underestimate how much work you will be putting in for clients.

According to the Gifted Travel Network , most successful travel agents are charging over $125 for a fee. You can always start around that price range where you feel most comfortable and increase in the future. You can also set limits around this fee. For example, if you are asked to plan a trip for a large group which include many tours, activities, accommodations, flights, etc. maybe you increase the fee to each couple or every x amount of people.

How to approach the fee conversation.

We get it, asking for money from a potential new client can be challenging because you obviously don’t want to scare them off! So to be successful at charging a fee you first want to be confident enough in yourself that you deserve a service fee. Just think about all of the research and planning that you will be spending on this client and let them know up front that you will be requiring a fee and list out why you are charging the fee (time of planning, research, and making it the best trip possible for the traveler).

Decide ahead of time when you introduce the fee into the conversation as well. Whether you want to wait until they request a proposal or quote or up front at the very beginning. If you decide to post in advance on your website, you may lower your leads but that will better qualify your clients. Find what works best for you and your business and run with it!

Understanding travel agency fees: the essential guide

Whether you're planning a business or leisure trip, you might want to save time by using a travel agency. The concept of a tour operator is simple: buy holidays in bulk and for less. This solution often saves you a lot of money, but it's essential to take travel agency fees into account. Here's what they include!

What are the travel agency fees?

Travel agency fees cover part of the administrative costs involved in booking and managing your trip. These may include flight searches, accommodation reservations, train or plane tickets, transfer coordination, etc. 

Not all travel agencies charge handling fees, but the vast majority do. When you're planning a trip with a travel agency, we advise you to find out about any fees beforehand. This should be done right from the start of the process, so that you clearly understand the costs associated with their services, and avoid unpleasant surprises at the final settlement!

To give you an idea, here's an overview of what a travel agency's handling fee includes.

Consulting fees

First of all, travel agencies may charge a consulting fee for the time spent talking with you, understanding your needs, your preferences in terms of destinations, airlines and type of accommodation, and developing a customized itinerary. Consulting fees also include planning fees, covering the time and effort invested by the agency in designing a trip tailored to your specific needs.

Service, management and transaction fees

Service fees refer to reservations for airfare, accommodations, car rentals, as well as certain travel-related activities. Travel agents coordinate the various elements of the trip to ensure that everything is synchronized, such as flight schedules and hotel reservations. Typically, transaction fees are charged as a percentage of each reservation, modification or cancellation on your behalf.

Service and management fees can also include administrative costs, linked to the agency's general administrative costs, such as the maintenance of reservation systems, personnel, office expenses, etc.

Assistance costs

The advantage of using a travel agency is that they often offer 24/7 assistance throughout the planning stage, as well as ongoing assistance during the trip in case of problems or unforeseen situations.

Insurance costs

Going through a travel agency sometimes involves extra charges for travel insurance, either included or optional. This offers protection to travelers in the event of unforeseen circumstances. Travel insurance costs cover various aspects:

• trip cancellation due to unforeseen circumstances such as illness, accident or death of a family member;
• trip interruption for medical emergencies or unexpected events ;
• medical insurance to cover emergency medical expenses abroad, including hospitalization;
• baggage insurance guaranteeing reimbursement in the event of loss, theft or damage to baggage during the trip;
• third-party liability covering damage caused to third parties during the trip.

Insurance costs in France may vary according to the coverage chosen by the agency and the duration of the trip. Find out which travel insurances are best for you , and contact your bank. You may already have adequate travel insurance with your bank card!

Booking through a travel agency: is it more expensive?

If you're thinking of entrusting your travel project to an agency, you're probably wondering: will I pay more? Because if the travel agency is working on my trip, there are bound to be costs!

The answer is no, it won't cost you more. On the contrary, it often saves you money! Whether it's for low-cost or first-class air tickets, accommodation, activities or tours, the travel agency negotiates contracts with various brands and companies at the best price, and obtains exclusive promotions. 

So, if you use a travel agency, the chances are that the price of your holiday will be lower than if you booked directly with each service provider. In many cases, travel agencies can help you save money. The only thing to bear in mind is the booking fee, which varies from one agency to another, depending on the services offered.

What percentage does a travel agency take?

Most travel agencies take between 9% and 15% commission for anything to do with services, stays or tours. For a single airline ticket sold, a travel agency might take 8% of the public price.

However, this percentage varies from one travel agency to another, depending on the services they offer. Some travel agencies may charge between 15% and 20% commission. Make sure you find out what the fees are before embarking on your adventure with a travel agency, and above all, use an agency that is transparent about them!

Why use a travel agency?

The first advantage of using a travel agency is that it saves you time . Travel agents can take care of your trip from A to Z. If you've ever planned a trip, you know how complex and time-consuming it can be. Travel agents take care of planning, hotel reservations, flights, transfers and other details that save you time and energy.

Travel agents are experts in their field and can provide you with useful advice on destinations, the best times to go there, activities to do, and so on. Their in-depth knowledge can help you plan a trip perfectly suited to your needs and preferences.

Then, the second big advantage is that they give you access to preferential rates and exclusive offers, having negotiated with their partners. This means you'll get better deals than if you booked with each provider yourself.

Finally, when you use a travel agency, you often benefit from assistance in the event of a problem (flight delays, cancellations or accommodation problems, etc.). This takes the stress out of your trip, and allows you to quickly resolve any unforeseen situations with a single point of contact!

What's the difference between a travel agent and a travel agency?

A travel agent is someone who works for a travel agency, or who works independently. They help you plan your trip, book flights and hotels, and advise you on visas, travel insurance and tourist activities.

A travel agency is a commercial enterprise that composes and sells a range of travel-related services. It is made up of one or more travel agents.

There is no better option between the two, it all depends on the quality of the services provided by the agency and the independent travel agent, and of course, the prices of the trips offered and the handling fees!

Travel agencies are required to provide a financial guarantee to ensure that travelers are reimbursed in certain situations, such as trip cancellation, non-performance of scheduled services or even bankruptcy of the agency itself. The aim is that, should something go wrong, you're protected from A to Z.

Today, the majority of companies work with a travel agency to plan their business trips, and find it a real added value in terms of travel management. 

To help office managers, we've developed Fairfees , which compares your travel costs across different agencies. This easy-to-use simulator will help you choose the travel agency best suited to your needs.

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Service fee

A fee charged by a travel agency to a company/individual for travel services.

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Is a Travel Agent Worth It? The Pros and Cons

N eed to pivot your trip plans but don't want to deal with the extra time, money and hassle of rebooking flights and accommodations on your own? That's just one area where a knowledgeable travel agent (also commonly known as a travel advisor) can help. Read on to discover the other benefits – as well as the downsides – of using a travel agent, so you can confidently decide whether or not a travel agent is worth it for your next trip.

The Pros of Using a Travel Agent

Travel agents can save you money – and get you other perks.

"In some cases, you'll actually get a better  deal by working with a travel agent," says Jackie Steele, travel expert at MagicGuides . "This could be in the form of a cruise onboard credit (free spending money to use on the ship), access to special agency/group rates, or even just learning about a discount you qualify for but weren't aware of." The best agents will even keep an eye on new discounts as they're announced and apply them to your trip even after you've booked, he notes.

Travel agents handle all the details

Hotel room? Booked. Dinner reservations? Made. Tour tickets? Ready to go. A travel agent handles every detail of your vacation itinerary. "The traveler still gets to be involved in the fun part of dreaming up ideas and providing their travel wishes, while we take and perfect them," says Jessica Parker, founder of Trip Whisperer .

Molly McShea, owner and travel advisor at McShea Travel , points out that travel agents can also help with timing logistics. "Travel agents know how many days should be spent in each destination, which tours go together, and how many things you should do in a day," she says, adding that crafting an itinerary can be challenging if it's not something you regularly do. Additionally, travel agents can help you choose the best time to visit your preferred destination(s) based on seasonality and your budget, and sift through travel insurance policies to find the best option for your needs.

Travel agents can provide local expertise

"A travel advisor's industry connections and relationships provide added value to their clients," says Valerie Edman, a luxury travel advisor and agency owner at Cultured Travel LLC. She says when working with a travel agent, travelers gain access to a global network of connections including:

• In-destination specialists who work exclusively with travel advisors and can connect travelers with unique, off-the-beaten-path experiences they wouldn't otherwise know about
• Exclusive experiences not available to the general public

You'll avoid surprise fees

When deciding if a travel agent is worth it for you, remember this: A reputable agent can guarantee you won't encounter any surprise fees on accommodations and activities once your trip is booked.

You'll have someone to troubleshoot unexpected travel issues

A travel advisor is essentially your personal vacation concierge. "Because they've been around for so long, agents really know what to look for," says Christopher Elliott , a consumer advocate and journalist. "Travel agents are among the first to know about flight cancellations and delays , making it easy for them to rebook itineraries right away." 

The Cons of Using a Travel Agent

It might not be your cheapest option.

There are some instances when it makes more sense to plan your own trip. "If you're planning a quick flight from New York City to Los Angeles, it's easy enough to book it yourself online directly or through a third-party booking site," says Elliott. "If you're planning a once-in-a-lifetime trip or bucket list honeymoon , that's when you call the experts."

You'll have less flexibility in your itinerary

The upside of working with a travel agent is having someone plan an epic vacation for you based on industry knowledge and local expertise. But this can also be a downside in the event you discover an activity you'd like to do or a restaurant you'd like to try that isn't on your pre-planned itinerary. If you alter your plans, you risk losing money; plus, the time it takes for you and your travel agent to coordinate your change of plans may not be worth the hassle.

You still have to do some research

It's important to find an agent you can trust, which means you still have to do some of the vacation planning. For this part, Parker recommends picking up the phone. "Lots of people avoid or don't pick up the phone as much anymore," she says. "That's where you get the high-touch service, tone of voice, excitement or concerns to manage." She advises to look for the following red flags:

• No fees: " Travel advisors are charging planning fees more now or increasing them, so the client knows more confidently than ever, we work for them, not the suppliers with the best commissions," Parker explains. "There are a lot of things that are non-commissionable and the advisor's time and expertise shouldn't be given away for free, either. That's the best way to show an advisor takes their business seriously."
• Limited options: If you work with someone who is inexperienced or has an incentive to book you with a certain supplier, they may not be prioritizing your best interests. "It's important to check if they are with a larger consortia, accreditations and network, typically listed on their website and signatures," says Parker. "That level of mindshare doesn't come with a lone advisor unless they have many, many years of experience."
• Slow response times: If communication is delayed, that's a sign they may be too busy to plan your trip – but again, this is something you can avoid by having the right conversations early on.

Edman suggestes starting your search with the American Society of Travel Advisors . "ASTA-verified travel advisors are committed to the highest industry standards and have verifiable industry knowledge so consumers can feel confident in working with them," she says.

You might also be interested in:

• Is Travel Insurance Worth It?
• First-Time Cruise Tips
• Carry-on Luggage Sizes by Airline
• What to Pack in Your Carry-on Bag
• The Best Luggage Brands

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Here’s How To Become a Travel Agent and Earn $3,000 Monthly

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No matter the type of travel you enjoy doing travel planning takes attention to detail mixed with a bit of the spirit of adventure. Every once in a while when the stars align you can take what you love to do and turn it into a living. It’s time to pack your go bag and explore the travel agency world .

See Also: 6 Unusual Ways To Make Extra Money (That Actually Work)

How To Become a Travel Agent

Just because someone has travel experience does not mean they can automatically become a travel agent. However, if you are interested in becoming a travel agent there are many programs you can take to help you become one, or even start your own business. Skills you will learn include how to organize travel arrangements, business ethics, customer service, itinerary planning and the ins and outs of travel insurance.

No matter your career goals, whether you want to focus on luxury travel or more of a local tour operation, the following programs and certifications, which can be done in person or remotely, can get you started on the right path.

• Departure Lounge: Learn how to navigate the hotel industry as an independent contractor as well as get tips on tour operating.
• Premier Cruise Lines: Many lines such as Virgin Voyages, Cunard or Ritz-Carlton Yachts provide training programs for travel agents to help them sell their products and services more efficiently.
• Get Certified: When your training and coursework are complete a certification helps distinguish you in the field with these designations. Some popular ones include the International Air Transport Association, Cruise Line International Association or Travel Industry Designator Service. Be sure to research which certification makes the most sense for you as it will imply different things for your business.

How Much Do Travel Agents Make?

The median pay for what travel agents get paid in the United States is estimated to be about $46,400 annually which is over $3,000 monthly. This may seem underwhelming, but this is an estimate by the U.S. Bureau of Labor Statistics which means is only based on what full-time employees make and not self-employed people. In other words, you can make a lot more money as an independent travel advisor as opposed to working for a host agency. 

Travel agents make money by earning commissions on trips they book as well as charging fees such as booking or service fees. This is a great way to also set your own schedule and only choose the gigs you like. 

Final Take To GO: Love To Travel?

When it comes to starting as a travel agent, a good rule to follow is to try to sell and book trips you yourself would want to take. If you already love to travel this could be a natural next step in your career or a budding side business. 

A great way to sell yourself as a travel agent is to define your unique selling point. Essentially what is it about you that will make people want to book trips with you? It also helps to optimize your website, create high-quality content from trips you’ve booked or been on and leverage your social media platforms. Once you have your foundation firmly established, everything else is booking a day at the beach. 

• Full-time travel agents make roughly $46,400 a year which is over $3,000 a month. However, there is a chance to make more money than this estimate by starting your own travel agency and working for yourself. This way you can set your own schedule and don't have to worry about splitting your commissions.
• You don't need a specific degree to get started as a travel agent, but finding a training program and getting certified with varying destinations does help distinguish you as a trusted travel agent to your potential clients.
• Selling yourself as a travel agent, much like with any job or small business, starts with defining your unique selling point. Essentially what is it about you that will make people want to book trips with you? It also helps to optimize your website, create high-quality content from trips you've booked or been on and leverage your social media platforms.
• Get Certified: When your training and coursework are complete a certification helps distinguish you in the field with these designations. Some popular ones include the International Air Transport Association, Cruise Line International Association or Travel Industry Designator Service. Research which certification makes the most sense for you as it will imply different things for your business.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy .

• Condé Nast Traveler. 2023. "How to Become a Travel Agent—Because, Believe It or Not, the Industry Is on the Rise."
• U.S. Bureau of Labor Statistics. 2024. "Travel Agents: Occupational Outlook Handbook."
• Host Agency Reviews®. 2024. "How Much Do Travel Agents Make? | 2024 Travel Agent Salary."

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Some airline issues get you a refund, some don't. How it works | Cruising Altitude

John Schrier was traveling home to New York from Taipei last month and said the flight was interminably boring.

“As we boarded, you could see that about half of the screens had a black screen,” he told me. “Half of us were not able to watch an entertainment system.” 

Schrier said he reached out to the Taiwanese airline EVA Air on multiple platforms, including on social media during the flight, but said he initially had no luck hearing back or getting reimbursed for the inconvenience of a transpacific flight with no inflight entertainment.

Unfortunately for Schrier, it’s unlikely that compensation will be required. Airlines have conditions attached to every ticket, known as contracts of carriage, that outline their minimum obligations to passengers. Contracts of carriage, coupled with rules from regulators like the Department of Transportation, give passengers their basic rights when flying – but seatback screens are not usually considered mandatory equipment, even if they’re advertised as an available amenity.

Nevertheless, the DOT recently announced new rules that give consumers increased protections when other kinds of things go wrong, so here’s what you need to know about what is and isn’t a reimbursable offense by an airline these days.

What is an airline contract of carriage?

Airline contracts of carriage are the terms and conditions that passengers agree to when they fly. Travelers automatically sign on when they purchase their tickets, even if they don’t have to formally sign a document. The contracts typically outline an airline’s commitments for transportation, as well as what happens if your flight is delayed or canceled and other fine print related to your itinerary.

“Some airlines have a customer bill of rights to basically simplify the airline contract of carriage, but essentially it’s what’s allowed, what’s not allowed, but everybody has a little bit different verbiage,” Loulu Lima, founder of the Texas-based travel agency Book Here Give Here, told me. 

If you want to comb through the fine print, airlines make their contracts of carriage available on their websites. EVA’s contract , which covered Schrier’s trip, includes terms and conditions on how tickets can be used and (not) transferred, how stopovers work, what kinds of delays or cancellations make a passenger eligible for a refund and other assorted policies.

“It’s going to depend on the airline. An American airline is going to have a different set of rules than an Asian one,” Lima said. “The rules are really written based on the country of the corporate office.

Here are the contracts of carriage for each of the major U.S. airlines, if you want to take a look: 

• American Airlines
• United Airlines
• Delta Air Lines
• Southwest Airlines

Can passengers get a refund for broken inflight entertainment?

Usually not. 

“If you have status, you might get some loyalty points out of it, but other than maybe going on social media and making a big stink about it you’re probably not going to get anything,” Lima said.

Some airlines are also more accommodating than others and may voluntarily give passengers credits when something like that goes wrong. A few years ago, I was flying on Delta, and my seatback screen was broken, and they gave me about 2,500 SkyMiles as a goodwill gesture. 

Schrier said EVA eventually offered him about $100 in compensation.

Last week's Cruising Altitude: Another Boeing plane issue? Don't fall for the headlines.

New Department of Transportation rule increases traveler protections

While inflight entertainment isn’t typically considered critical equipment by an airline, which means it’s safe to travel even if those seatback screens aren’t working, the DOT recently announced new rules that help guarantee protections and refunds for other kinds of issues in the air. 

Part of the change mean: 

• Airlines will have to automatically issue refunds within 20 days if a passenger’s flight is canceled or significantly delayed (over three hours) and they choose not to travel on alternative flights offered.
• If a traveler pays a checked bag fee and their bag is significantly delayed, they’ll be entitled to a refund of the fee. 
• If a traveler pays in advance for an ancillary service like an extra legroom seat or Wi-Fi and then does not have access to that amenity on the flight, they will have to receive a refund for those charges.

The refund policies were also coupled with another new rule that requires more upfront, clear-cut disclosure of airline fees.

“A lot of what we hear from passengers involves refunds – or the lack thereof – for passengers who experience cancellations and disruptions.” Transportation Secretary Pete Buttigieg said in a statement announcing the new rules. “Infrequent fliers are especially vulnerable, since they may not know that we are here for them, and are often not told about their right to a refund, and too often instead offered compensation in form of a voucher or miles whose value amounts to pennies on the dollar of what they are actually owed. Or they enter the vortex of call centers and chatbots, sometimes giving up before they get their money back.”

Schrier, for example, said he had a lot of trouble getting through to EVA to file his complaint. 

It’s definitely frustrating for travelers who are on a long flight without functioning entertainment. I’m usually totally dependent on the seatback screen for my distractions while flying. But if the alternative is for a flight to get significantly delayed or canceled while technicians fix the operating system, I think I’d rather just get going. 

Zach Wichter is a travel reporter for USA TODAY based in New York. You can reach him at [email protected].

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Automatic Refunds and No More Hidden Fees: D.O.T. Sets New Rules for Airlines

The Transportation Department issued new requirements on refunds when flights are canceled or delayed and on revealing “junk” fees before booking. Here’s what passengers can expect.

By Christine Chung

The Transportation Department on Wednesday announced new rules taking aim at two of the most difficult and annoying issues in air travel: obtaining refunds and encountering surprise fees late in the booking process.

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” said U.S. Transportation Secretary Pete Buttigieg in a statement, adding that the changes would not only save passengers “time and money,” but also prevent headaches.

The department’s new rules, Mr. Buttigieg said, will hold airlines to clear and consistent standards when they cancel, delay or substantially change flights, and require automatic refunds to be issued within weeks. They will also require them to reveal all fees before a ticket is purchased.

Airlines for America , a trade group representing the country’s largest air carriers, said in a statement that its airlines “abide by and frequently exceed” D.O.T. consumer protection regulations.

Passenger advocates welcomed the new steps.

Tomasz Pawliszyn, the chief executive of AirHelp, a Berlin-based company that assists passengers with airline claims, called it a “massive step forward and huge improvement in consumer rights and protection” that brings the United States closer to global standards in passenger rights.

Here’s what we know about the D.O.T.’s new rules, which will begin to go into effect in October.

There’s now one definition for a “significant” delay.

Until now, airlines have been allowed to set their own definition for a “significant” delay and compensation has varied by carrier . Now, according to the D.O.T., there will be one standard: when departure or arrival is delayed by three hours for domestic flights and six hours for international flights.

Passengers will get prompt refunds for cancellations or significant changes for flights and delayed bags, for any reason.

When things go wrong, getting compensation from an airline has often required establishing a cumbersome paper trail or spending untold hours on the phone. Under the new rules, refunds will be automatic, without passengers having to request them. Refunds will be made in full, excepting the value of any transportation already used. Airlines and ticket agents must provide refunds in the original form of payment, whether by cash, credit card or airline miles. Refunds are due within seven days for credit card purchases and within 20 days for other payments.

Passengers with other flight disruptions, such as being downgraded to a lower service class, are also entitled to refunds.

The list of significant changes for which passengers can get their money back also includes: departure or arrival from an airport different from the one booked; connections at different airports or flights on planes that are less accessible to a person with a disability; an increase in the number of scheduled connections. Also, passengers who pay for services like Wi-Fi or seat selection that are then unavailable will be refunded any fees.

Airlines must give travel vouchers or credits to ticketed passengers unable to fly because of government restrictions or a doctor’s orders.

The vouchers or credits will be transferable and can be used for at least five years after the date they were issued.

Fees for checked baggage and modifying a reservation must be disclosed upfront.

Airlines and ticket agents are now required to display any extra fees for things like checking bags or seat selection clearly and individually before a ticket purchase. They will also need to outline the airline’s policies on baggage, cancellations and changing flights before a customer purchases a ticket.

The rules, which apply to all flights on domestic airlines and flights to and from the United States operated by foreign airlines, have varying start dates.

For example, automatic refunds must be instituted by the airlines within six months. But carriers have a year before they’re required to issue travel vouchers and credits for passengers advised by a medical professional not to fly.

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Christine Chung is a Times reporter covering airlines and consumer travel. More about Christine Chung

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Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .

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FACT SHEET: Biden- ⁠ Harris Administration Announces Rules to Deliver Automatic Refunds and Protect Consumers from Surprise Junk Fees in Air   Travel

Newly finalized rules will mandate automatic, cash refunds for cancelled or significantly delayed flights and save consumers over half a billion dollars every year in airline fees

WASHINGTON – Building on a historic record of expanding consumer protections and standing up for airline passengers, the Biden-Harris Administration announced final rules that require airlines to provide automatic cash refunds to passengers when owed and protect consumers from costly surprise airline fees. These rules will significantly expand consumer protections in air travel, provide passengers an easier pathway to refunds when owed, and save consumers over half a billion dollars every year in hidden and surprise junk fees.   The rules are part of the Biden-Harris Administration’s work to lower costs for consumers and take on corporate rip-offs. President Biden signed an Executive Order on Promoting Competition in 2021 that encouraged DOT to take steps to promote fairer, more transparent, and competitive markets.   Requiring Automatic Cash Airline Refunds

The first rule requires airlines to promptly provide passengers with automatic cash refunds when owed because their flights are cancelled or significantly changed, their checked bags are significantly delayed, or the ancillary services, like Wi-Fi, they purchased are not provided.   Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how to make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone. Passengers would also receive a travel credit or voucher by default from many airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or cancelled without navigating a cumbersome request process.   DOT’s rule makes it simple and straightforward for passengers to receive the money they are owed. The final rule requires refunds to be:

• Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.
• Prompt: Airlines and ticket agents must promptly issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.
• Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.
• Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees.

Protecting Against Surprise Airline Junk Fees

Secondly, DOT is requiring airlines and ticket agents to tell consumers upfront what fees they charge for checked bags, a carry-on bag, for changing a reservation, or cancelling a reservation. This ensures that consumers can avoid surprise fees when they purchase tickets from airlines or ticket agents, including both brick-and-mortar travel agencies or online travel agencies. The rule will help consumers avoid unneeded or unexpected charges that can increase quickly and add significant cost to what may, at first, look like a cheap ticket. Extra fees, like checked baggage and change fees, have been a growing source of revenue for airlines, while also becoming more complex and confusing for passengers over time. In total, thanks to the final rule, consumers are expected to save over half a billion dollars every year that they are currently overpaying in airline fees. DOT’s rule ensures that consumers have the information they need to better understand the true costs of air travel. Under the final rule, airlines are required to:

• Disclose baggage, change, and cancellation fees upfront : Each fee must be disclosed the first time that fare and schedule information is provided on the airline’s online platform — and cannot be displayed through a hyperlink.
• Explain fee policies before ticket purchase: For each type of baggage, airlines and ticket agents must spell out the weight and dimension limitations that they impose. They must also describe any prohibitions or restrictions on changing or cancelling a flight, along with policies related to differences in fare when switching to a more or less expensive flight.  
• Share fee information with third parties : An airline must provide useable, current, and accurate information regarding its baggage, change, and cancellation fees and policies to any company that is required to disclose them to consumers and receives fare, schedule, and availability information from that airline.
• Inform consumers that seats are guaranteed: When offering an advance seat assignment for a fee, airlines and ticket agents must let consumers know that purchasing a seat is not necessary to travel, so consumers can avoid paying unwanted seat selection fees.
• Provide both standard and passenger-specific fee information:  Consumers can choose to view passenger-specific fee information based on their participation in the airline’s rewards program, their military status, or the credit card that they use — or they can decide to stay anonymous and get the standard fee information.
• End discount bait-and-switch tactics: The final rule puts an end to the bait-and-switch tactics some airlines use to disguise the true cost of discounted flights. It prohibits airlines from advertising a promotional discount off a low base fare that does not include all mandatory carrier-imposed fees.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration Both of these actions were suggested for consideration by the DOT in the Executive Order on Promoting Competition and build on historic steps the Biden-Harris Administration has already taken to expand consumer protections, promote competition, and protect air travelers. Under the Biden-Harris Administration, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and returned more money to passengers in refunds and reimbursements than ever before in the Department’s history.

• DOT launched the flightrights.gov dashboard, and now all 10 major U.S. airlines guarantee free rebooking and meals, and nine guarantee hotel accommodations when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to and are displayed on flightrights.gov.
• Since President Biden took office, DOT has helped return more than $3 billion in refunds and reimbursements owed to airline passengers – including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.
• DOT has issued over $164 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued less than $71 million in penalties against airlines for consumer protection violations.
• DOT recently launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.
• In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2% — the lowest rate of flight cancellations in over 10 years despite a record amount of air travel
• DOT is undertaking its first ever industry-wide review of airline privacy practices and its first review of airline loyalty programs

In addition to finalizing the rules to require automatic refunds and protect consumers from surprise fees, DOT is also pursuing rulemakings that would:

• Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, as the Department is working on its family seating junk fee ban proposal.
• Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.
• Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity . The comment period on this proposed rule closes on May 13, 2024.

Travelers can learn more about their protections when they fly at  FlightRights.gov . Consumers may file an airline complaint with the Department  here .

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Travel | Travel Troubleshooter: Expedia said it would…

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Travel | the latest | 4 officers injured removing protesters at university of wisconsin in madison, travel | travel troubleshooter: expedia said it would refund my tickets four years ago. help.

I waited a few months, but the refund never showed up on my credit card. I contacted Expedia in early 2022, and they told me to contact Air Transat for my refund. I did, and an Air Transat representative said the airline had already sent my refund to Expedia.

I’ve contacted both Expedia and Air Transat on numerous occasions since then, and I’ve also asked my credit card company for help. It says that there’s no record of a refund from Expedia or Air Transat. I would love to get my refund. Can you help me?

— Keith Dawe, Toronto

ANSWER: Expedia should have refunded your money four years ago. I believe this is a new record for the longest airline refund case. (Congratulations, Expedia!)

Air Transat is a relatively small charter airline, so that might explain the initial delay. But at some point, Expedia should have taken ownership of this problem and helped you get a refund. Instead, it looks as if you bounced between Expedia, Air Transat and your credit card company for years. Literally, years. You must be exhausted.

What happened? It looks as if Air Transat refunded part of your purchase with a check, which appears to only cover taxes and fees. This left an outstanding balance of about $1,002. Air Transat claims it sent the money to Expedia, but Expedia said it never received the money.

You were way too patient with your airline and online agency. You should have received the promised refund promptly, and if you didn’t, you should have filed a credit card dispute to recover your funds.

I list the names, numbers and email addresses of the Expedia executives on my consumer advocacy site, Elliott.org . A brief but firm email to one of them might have motivated Expedia to find your missing money.

I contacted Expedia on your behalf. In response, the company apologized and admitted that there was “an error with the refund.” “The refund has been processed,” a representative said. Expedia also added $200 worth of points to your loyalty account as an apology for the delay.

Christopher Elliott is the founder of Elliott Advocacy , a nonprofit organization that helps consumers solve their problems. Email him at [email protected] or get help by contacting him at elliottadvocacy.org/help/ . (c) 2024 Christopher Elliott Distributed by King Features Syndicate, Inc.

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