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Does your TA charge a service fee, and if so how much?


flagger

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My new TA (first time booking with them) charged me a $75 booking fee. I'm getting a $200 OBC for the 10 day Equinox cruise.

 

I was searching for a new TA before I booked this cruise...sent out many emails and no one was willing to give me an OBC except this company. Some companies sent a generic email that said "thanks for contacting us. We can't provide you squat for information by email but would be happy to talk with you". I dismissed those. So I thought the OBC outweighed the booking fee.

 

Maybe I'll think differently net time.

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My new TA (first time booking with them) charged me a $75 booking fee. I'm getting a $200 OBC for the 10 day Equinox cruise.

 

I was searching for a new TA before I booked this cruise...sent out many emails and no one was willing to give me an OBC except this company. Some companies sent a generic email that said "thanks for contacting us. We can't provide you squat for information by email but would be happy to talk with you". I dismissed those. So I thought the OBC outweighed the booking fee.

 

Maybe I'll think differently net time.

 

Our TA said that she charges a 75.00 per cabin cancellation charge. The TA

also gave us the lowest quote for the cruise plus a 200 dollar obc. On our last cruise we were not expecting anything from the TA. TA gave us two bottles of wine and a 100 obc. The 75 dollars seems reasonable to us for all the work they do.It could be we always manage convince at least four friends to cruise with us,so the perks are meant as a thank you They never mention them as such.

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Our old travel agent started charging non refundable $25 per person service fee. That's why I said our "old" agent.

 

I feel sorry for the position agencies are in. I know more about the cruises I want to take than most agents I've delt with, thanks to sites like Cruise Critic.

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I use a Ta from time to time it is a major travel agency the day I get charged it would be bye bye. This travel agency recieves 16% commission from my booking's from X & RCI. This is a nice chuck of change with that commision no one should be charging additional monies. I tried to book on my own through the cruiseline unless she can give me a better deal.

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I use a Ta from time to time it is a major travel agency the day I get charged it would be bye bye. This travel agency recieves 16% commission from my booking's from X & RCI. This is a nice chuck of change with that commision no one should be charging additional monies. I tried to book on my own through the cruiseline unless she can give me a better deal.

Not all travel agencies earn 16%. There are quite a few people who will have a TA do all this research and then do not book or take their business elsewhere.

 

You pay an accountant to do research for you. You pay an attorney a retainer. TAs are also professionals and you will begin to see more and more fees from them.

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I use a Ta from time to time it is a major travel agency the day I get charged it would be bye bye. This travel agency receives 16% commission from my booking's from X & RCI. This is a nice chuck of change with that commision no one should be charging additional monies. I tried to book on my own through the cruiseline unless she can give me a better deal.

 

They only get commission on about 80% of the fare you see on the cruise line website and nothing at all if you cancel. As Flagger said, many don't get the 16%, either. More like 10-12. If they give you any OBC or gifts, those come out of their commission. Many people take a lot of the TA's time and then cancel or don't book. I think everyone deserves to be paid for their time.

 

I have only canceled one cruise and I didn't get a service charge. But I also don't take a lot of her time. I let her know what I am looking for (usually the exact cruise, but never more than a short time-frame and itinerary). She does sometimes give us OBC or a little gift, but that is not why I use her. I look for her to get me the cabin we want (and we are pretty particular) and handle any problems that come up. I look for fare reductions, but she does too. Recently we each found one on a cruise I have coming up next year (who would believe two reductions?) plus she applied a coupon I didn't know anything about.

 

If I made a habit out of taking a lot of time and then not booking with her, how could I be mad if she made $25-50 for several hours of her time? She runs a business, not a charity.

 

But I would never deal with a TA that charged me a service fee for changes or one who hit me with a cancellation fee for one cruise out of about 20 (not to mention quite a few referrals).

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I will say that service charges (either included in the price of the quote or as an additional flat rate) are becoming more and more the norm for TAs even for cruises. There are many passengers that will have one TA do all the research and then take that same fare to a different TA because of an OBC.

 

When people ask their TA to get them a lower fare they are also asking their TA to earn less money.

 

Posters on CruiseCritic spend more of their time researching cruises than the average passenger and also many TAs so I would expect that they would balk at a service charge, but I have seen it coming up far more frequently.

 

 

A refundable service charge is acceptable to me. If the booking is finalized, the fee is refunded. If all the work has been done, but the booking never reaches final payment, then $50.00 fee. So many people take advantage of the personal help a TA gives in finding a cruise and then they sit down and go book it on-line with the cruise line. A TA can only take this happening to them so many times before they have to start charging a refundable fee. ;) People who wont book unless they get gifts and OBC, look at your cruise fare only. Not the tax's, port fee's and fuels surcharges. figure 12% and then what your OBC's and gifts are costing the TA come out of that. If you are an easy client where not much work is involved then its worth it to the TA to gift you, (most of the seasoned cruise critics members) BUT if you take alot of the TA's time and book the lowest price cabin.........well the TA needs to earn a living.

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A refundable service charge is acceptable to me. If the booking is finalized, the fee is refunded. If all the work has been done, but the booking never reaches final payment, then $50.00 fee. So many people take advantage of the personal help a TA gives in finding a cruise and then they sit down and go book it on-line with the cruise line. A TA can only take this happening to them so many times before they have to start charging a refundable fee. ;) People who wont book unless they get gifts and OBC, look at your cruise fare only. Not the tax's, port fee's and fuels surcharges. figure 12% and then what your OBC's and gifts are costing the TA come out of that. If you are an easy client where not much work is involved then its worth it to the TA to gift you, (most of the seasoned cruise critics members) BUT if you take alot of the TA's time and book the lowest price cabin.........well the TA needs to earn a living.
Does an attorney or accountant offer a refundable service charge?

 

Many offer a free consultation but once they start doing actual work of their specialty the fee gets charged. Attorneys take a retainer. The work a TA before during and after the deposit doesn't end and I believe they should receive payment for it. Some can apply it to the booking and others can just charge a flat fee.

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Does an attorney or accountant offer a refundable service charge?

 

Many offer a free consultation but once they start doing actual work of their specialty the fee gets charged. Attorneys take a retainer. The work a TA before during and after the deposit doesn't end and I believe they should receive payment for it. Some can apply it to the booking and others can just charge a flat fee.

 

The problem with comparing a travel agent to a lawyer or accountant is that a TA is an agent for the cruise line and is facilitating the sale a product that they don't own while the others are just providing professional services. The free consultation that some lawyers and accountants provide is essentially to show a potential client that they have the integrity and professional knowledge to perform the professional service that is needed. Therefore, once that is established they charge fees for all of their professional services.

 

A travel agent on the other hand is more comparable to a real estate agent because they are also agents for the owner of a product that they are trying to sell and frequently spend an inordinate amount of time giving advice and showing homes but don't get paid unless their customer buys a house and that sale closes.

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A travel agent on the other hand is more comparable to a real estate agent because they are also agents for the owner of a product that they are trying to sell and frequently spend an inordinate amount of time giving advice and showing homes but don't get paid unless their customer buys a house and that sale closes.

I don't know if you have been around real estate agents in awhile but everyone I know around here is charging fees before a home closes. The market place is changing.

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I don't know if you have been around real estate agents in awhile but everyone I know around here is charging fees before a home closes. The market place is changing.

 

WHAT????? What fee??? I have been selling real estate for 23 years and have NEVER heard of an agent charging a fee before close. Please tell me what you are talking about!

 

Cathy

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Sky Sweet,

 

I respectfully disagree. True, the agent represents cruise lines, but he/she is a provider of a service and that commodity has value to the client. If you don't need the service, you should go directly to the owner of the product. Why go to an agent if you don't need something from them?

 

If a client takes the agent's time and does not go through with the cruise for whatever reason (never intended to book, just comparison shopping to beat up another agent, or cancels), then the agent has expended time and gotten nothing in return. While that may be a risk of doing business, the margins a TA works with are small and I've never heard of one getting rich. While a real estate agent can spend many more hours per sale than a TA, the rewards are much, much higher.

 

I think your description of the time a lawyer or accountant spends demonstrating integrity (how do you do that in a short consultation?) and professional knowledge is valid and could equally apply to a TA for an initial conversation. That is really true for any initial encounter in a potential transaction. The provider needs to convince the customer to use their service/buy their product. But you seem to have no problem with the lawyer and accountant beginning to charge immediately following that while, in your view, the TA must continue to provide all of the services requested on faith that they will be paid.

 

The approach mentioned by a couple of other people of charging a reasonable service fee (but very clearly explained up front) that will be applied to the final payment would not offend me at all. But once a long-term relationship (such as I have with my agent) is established with a history of low-maintenance and few cancellations, the agent could score some points by waiving that fee up front (good marketing).

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WHAT????? What fee??? I have been selling real estate for 23 years and have NEVER heard of an agent charging a fee before close. Please tell me what you are talking about!

 

Cathy

To get comps and into a car and drive around looking at houses will costs you from $200-$700 depending on the area of town. Some of it applies to closing others keep it as a service fee above what they will receive at closing.

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The approach mentioned by a couple of other people of charging a reasonable service fee (but very clearly explained up front) that will be applied to the final payment would not offend me at all. But once a long-term relationship (such as I have with my agent) is established with a history of low-maintenance and few cancellations, the agent could score some points by waiving that fee up front (good marketing).

I agree it can be good marketing to waive a fee for good service, however back to the lawyer and or accountant comparison. You don't to apply your fee to your accountant to what you pay in taxes or receive as a refund.

 

Not everyone is going to pay it and others won't bat an eye.

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[quote name='bob278']Off topic, but am I going crazy, or does that dog blink?[/quote]

You are not going crazy Bob, the dog is definitely blinking.
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[quote name='flagger']To get comps and into a car and drive around looking at houses will costs you from $200-$700 depending on the area of town. Some of it applies to closing others keep it as a service fee above what they will receive at closing.[/quote]

Can you tell me in what part of the world this is happening? I find it really hard to believe, since now with MLS listings available to buyers on line, there is no reason to pay for a tour. And I guarantee the first time I asked someone to pay for the privilege of touring in my car, it would be the LAST tour I ever gave!

On second thought, maybe it's the equivalent of using a tour from a cruise ship. There are those who for convenience or security or lack of knowledge of a particular place will pay astronomical sums to be driven around in a big bus; there are others who prefer to make the discoveries on their own.

Off my soapbox now, but please do tell me where this applies as I have never heard of it.

Cathy
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[quote name='flagger']Not all travel agencies earn 16%. There are quite a few people who will have a TA do all this research and then do not book or take their business elsewhere.

You pay an accountant to do research for you. You pay an attorney a retainer. TAs are also professionals and you will begin to see more and more fees from them.[/QUOTE]

As I agree not all TA's receive a 16% commission my post was a Major Travel Agency receives 16% from X & RCI & yes it is 16% because I personnlly have seen the paper work. I understand that there are times that people us a Ta for information & then not book with them I look at that as a part of doing business. I do not agree with how some passengers treat their TA's regarding unwarrented cancellations but it is the travel business.
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[quote name='CathyCruises']Can you tell me in what part of the world this is happening? I find it really hard to believe, since now with MLS listings available to buyers on line, there is no reason to pay for a tour. And I guarantee the first time I asked someone to pay for the privilege of touring in my car, it would be the LAST tour I ever gave!

Off my soapbox now, but please do tell me where this applies as I have never heard of it.

Cathy[/quote]It happens here in NW GA. It was happening eight years ago in 1999. Many realtors unbundle the commission and ask for and receive a payment to come open a house for a showing or to work with a home stager or drive around their clients.

I bet if you said two years ago that people would just stop flying if their airlines started charging for checking bags but that has not exactly happened as revenue has been increasing for airlines and some will actually see a profit.

Not everyone will pay it, but some will.

Are you performing a service or providing one? There is a big difference. It's not what you charge it is what you do.

Do you change your own oil? Are you in the transaction business or consulting business?

If it is the latter, why not charge like a consultant?
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I have three different TAs I use for cruises.

None of them charge a fee for any of their services. They are always available, give excellent prices, and go to bat for me if the price goes down after final payment.

There are plenty of TAs out there that don't charge.
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[quote name='mafig']I have three different TAs I use for cruises.

None of them charge a fee for any of their services. They are always available, give excellent prices, and go to bat for me if the price goes down after final payment.

There are plenty of TAs out there that don't charge.[/quote]


And by your cruise history, a TA can trust that you will either finalize the booking, or be back for another. ;) Also, you know what you want and know how cruising works. You are a TA's dream. Thats the point I was trying to make. I think the fee should depend on the client..If you were new and "shopping" you may not get the same "no fee" treatment. Think of all the questions........ Do I need a passport? How do I get one? What do I wear? What is travel insurance? How do I get from the airport to the ship? How big is my cabin? Why do I have to pay for my 2 year old? Why cant he wear his diaper in the pool. :eek: A good TA would never say, "read the back pages of a brochure" instead they spend hours answering questions. that isn't worth $25 to $50? We here on Cruise Critic forget just how new and confusing a first cruise can be.
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[quote name='flagger']I was reading an article from 2003 about Oprah's TA. He charges a $10K initiation fee and a $5K per year retainer. His number is unlisted and only takes business from referrals.[/QUOTE]

It is not uncommon feor a TA that caters to the wealthy to charge a fee or their services. Of course they are not booking $3000 trips.
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[quote name='ccletzgo']And by your cruise history, a TA can trust that you will either finalize the booking, or be back for another. ;) Also, you know what you want and know how cruising works. You are a TA's dream. Thats the point I was trying to make. I think the fee should depend on the client..If you were new and "shopping" you may not get the same "no fee" treatment. Think of all the questions........ Do I need a passport? How do I get one? What do I wear? What is travel insurance? How do I get from the airport to the ship? How big is my cabin? Why do I have to pay for my 2 year old? Why cant he wear his diaper in the pool. :eek: A good TA would never say, "read the back pages of a brochure" instead they spend hours answering questions. that isn't worth $25 to $50? We here on Cruise Critic forget just how new and confusing a first cruise can be.[/quote]

Hi ccletzgo :)

Do you think it is a travel agent's job to let passengers know about inoculations they will need for the cruise they have booked?

We booked our Baltic Cruise to Russia over a year in advance through a TA.

When we received our shore excursion guide from Celebrity, just a month before our cruise, it mentioned that the CDC has been recommending Diphtheria shots for trips to Russia for the past fifteen years. It is a good thing I decided to read that booklet the day we received it or I would have had a serious problem. When I asked my doctor about it, he said I should definitely get it and it needed to be done at least a few weeks in advance to be effective.

I then decided to let our TA know so that she could advise her other customers when they book a cruise to Russia. To my surprise, she said it is not her responsibility to advise people about things of this nature.
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