You are a travel expert providing a valuable service to your client that involves time and hard work. How you setup your business is up to you, but it's important to realize you're not just in a service business, you're in a RELATIONSHIP building business. When establishing your relationship with your client you want to build trust and show your value. 

Why service fees are important

Charging a service fee allows you to not only making a commission on your booking, but also receive another reliable source of revenue for your business. The key to charging fees is your mindset. Let the customer know what you will do for them, earn their trust, be transparent, and then do the work and do it well! When you feel comfortable and confident asking for a service fee, the client will be comfortable paying it. 

Charging a service fee can also help you weed out the "window shoppers" and "value shoppers" just trying to find the cheapest price. You are not a human booking engine! Charging a service fee can help you find higher-quality and repeat clients that will appreciate you and value your services. 

As much as you love travel, it's also your job. Even if you decide not to charge a service fee, do not tell your client your services are free. It diminishes the value of your work and time, and could inhibit your ability to start charging fees in the future if you decide to do so. 

How do I add a service fee through the vendor when making my booking?

Not every vendor allows you to add a service fee on your booking, but many do! Most of the time it's in the final stages of the booking process. To find out if and how a vendor does this, we encourage you to do their vendor's training or contact the vendor directly for more information. 

If I add on a service fee through the vendor, do I receive 100% of the fee?

Services fees received through the vendor are treated as commission and follow your normal commission schedule. Meaning, if you are a New Face or Tier 1 agent, you will receive 75% of the commission. If you are a Tier 2 agent, you will receive 85% of the commission. 

Can I charge my own service fee?

For most agents, yes, however there are some exceptions in states with Seller of Travel (SOT) laws (California, Florida, Hawaii, Iowa and Washington). If you or your client live in one of these states, please research the state's Seller of Travel law before charging your client. These laws vary from state to state. 

What are Seller of Travel Laws? 

Seller of Travel (SOT) laws require travel agencies to register, regulate sales by travel agencies, and usually require financial protections for consumers. They primarily affect anyone living in or selling to residents that live in California, Florida*, Iowa, Washington, and Hawaii. Xstream's SOT license for the these five states covers our agents as independent contractors so long as you do not break their rules.

*Agents in Florida: You need to apply and pay the fee for the Independent Agent Statement of Exemption Form. This form can be found in your Xstream Agent Hub under the Resources tab and then Forms & Documents. Please click on the Seller of Travel Laws link that was provided for further details regarding this subject. SOT laws are one of the biggest reasons behind our policy of you not taking cash, checks, or using your own accounts for taking payments for trips.

What to charge

This is totally up to you! Each booking is different. Consider this, if your only income source is the commission on your booking and your client cancels, a non-refundable service fee or a cancellation fee, may help you retain some income in this circumstance. Also take into consideration bookings that take more time or offer less commission from the vendor. Charging a fee will supplement your income. Another idea is charging fees on non-commissionable or low commissionable add-on services like air, rail, car only, cancellation fee, trip changes, time intensive bookings like FITs, etc.

It's also important to understand the marketplace. Do some research and figure out the average fee in the current marketplace for travel agents. Google or ask on the Xstream Facebook page to see how much other travel agents are charging. Your fees are not the place to show you are the least expensive. Consider that higher fees can be perceived as higher value, but your decision should be based on your budgetary expectations as well as be within the means of the client. 

A good place to start is to create a business plan for yourself. Figure out how much you need to make in a year and determine what you need to charge to meet your revenue goals. Your fee is going to be between your revenue goals and the average fee in the marketplace. 

It's important that you communicate your fee schedule to your client and be sure the client physically signs a service agreement agreeing to your service fee schedule.


Different service fee models include:

  • Flat fee: One standard fee upfront to cover all the research and planning for the client's trip regardless of number of passengers or type of package. Many agents start at $100-$250 per booking (ultimately, it's up to you).
  • Per Person Fee: This fee would be a flat charge upfront for each passenger on the trip. This is popular for large groups. 
  • Hourly Fee: A charge per number of hours it takes you to plan, research, and book a trip for your client regardless of number of passengers or type of package. 
  • Transaction Fee: This fee would be for each type of service or add-on like an air or rail fee, excursion fee, car rental fee, etc. This means the client would be paying on how complex their package becomes. 
  • Plan-to-go Fee: This type of fee is a service fee that you charge upfront but then apply to the cost of client's trip. This disincentivizes window shoppers and can be charged in any of the models above. It's also a great option for agents apprehensive about fees to get familiar with them. 
Here's a sample service fee chart. Remember, what you charge is ultimately up to you:

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Additional options to consider:

You may also consider promotions to encourage repeat clients like only charging fees on the first vacation for your client, and then waiving their fee for their next vacation. Another idea is to waive your fees on the client's next trip if they refer a client to you that travels. 

You could also consider offering a complimentary 30 minute consultation for a client to qualify them to determine if they are the right client for you, and you are the right travel advisor for them. It will allow you to build trust between you, and provide a time and space to approach your fee schedule with them before you start researching. 

What should I call the fee? 

Some people don't like the term "service fee," and that's ok! Here are a few terms you can use: 

Travel design fee, service charge, consulting fee, consultation fee, research fee, concierge fee, agency management fee, processing fee, research & design fee, retainer fee, and customization fee are all great ideas. For transaction fees (per service), some agents list a "Fee Menu," which list the fee per service. 

When do I charge the fee?

Set a process. Decide when and how you will approach the service fee with your client. We recommend a process that looks like this:

  • Qualifying call: This is the stage when you're getting to know the client and determine their needs
  • Set expectations: Be clear about what the client can expect from you and the value you can bring to their vacation experience. 
  • Explain your service/research fee. Most agents decide that it will be non-refundable, but this is up to you. 
  • Collect your fee. Many agents collect their fee before the client's quote is delivered. When you collect your fee is ultimately up to you. 
How do I bring up service fees to my client? 

First, ask your client if they've ever worked with a travel advisor before. If no, remind them of the benefits of working with you and how you can provide a more personalized experience than they would find on some online booking tool like Priceline. They don't have to manage hours of research or details of the booking, insurance, additional services, etc. YOU are going to handle this for them so they can just relax and enjoy their trip. 

You could also consider beginning the relationship with your client by offering a complimentary 30-minute consultation. This will allow you to qualify the client to determine if you’re a good fit for each other. It will allow you to build trust and allow you the time and space to approach your fee schedule.

Here's a sample pitch for your client:

“This non-refundable retainer fee covers my time in researching, planning and arranging services with my suppliers. When you retain my services as your trusted travel advisor, I get to work confirming all reservations, sending you detailed confirmation materials, requesting exclusive upgrades and perks, when available, and acting as your advocate before, during, and after your trip.”

Be sure the client physically signs a service agreement agreeing to your service fee schedule.

Where can I find a sample of a service fee agreement?

We've provided one for you on your XstreamCRM! This allows you to send your Service Fee Authorization form directly to your client for an e-signature. You can also find templates online through sites like Jotform, Formswift, TravelJoy, etc.

How to charge the fee:

  • Your own merchant account: Quickbooks, Paypal, Square, Venmo, ARC Pay, etc. Some merchants may consider travel high risk. You may consider labeling the fee as a “Consultation fee.”
  • Through the vendor: This option applies to vendors that allow a markup, and may be the only option for agents or clients in states that have Seller of Travel laws. These fees are processed as commission and will be paid out on your normal commission percentage schedule (New Face and Tier-1 75%, Tier-2 85%). 

Be sure the client physically signs a service agreement agreeing to your service fee schedule.