Hi Norma
Yes, we do have a provision to charge a small fee (only $250). It is really there simply to discourage people from asking around and then walking away: exactly what you mentioned. If someone has put their hand in their pocket, they are less likely to bow out. in our Ts & Cs we state:
"Where you request us to customise an itinerary, we may first require you to pay a $250 customisation fee. Upon receipt of the fee, we will customise an itinerary for you based on your preferences and any particular instructions. If you confirm the itinerary (or any variation of it as prepared by us) within 1 month of us providing it to you, then the customisation fee will be applied towards payment of the price for the travel arrangements forming the itinerary."
I hope this helps.
...Steve
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Steven Cairns
Managing Director
Liberty Tours
BARANGAROO NSW
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Original Message:
Sent: 21-01-2024 16:37
From: Norma Keshishian
Subject: Tour Operators Charging Service fees
Dear Steven,
Obviously I'm not talking about completed proposals that have been accepted, I'm talking about the % of proposals I write and spend time on that don't get confirmed, as you say, those ones I am designing packages without any guarantee of selling them, it's time wasted. I'm talking about that.
My question to you is, and since you say that you are currently doing this, how much do you charge then for
- a design fee for creating the itinerary
- a non-refundable deposit that will come off the trip price if and when they book
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Your suggestions here would be most helpful and appreciated. Personally, I don't think the clients then go agent shopping with my itinerary, I just think they decide to do it themselves, or find cheaper options, but use my proposals as their template.
Kind regards,
Norma |
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Norma Keshishian
Owner
Destination Artisans
KILLARA NSW
Original Message:
Sent: 21-01-2024 13:39
From: Steven Cairns
Subject: Tour Operators Charging Service fees
Hi Norma
As a tour operator, you create products and you can sell them for any price you like, so for completed products your question is irrelevant.
However, if you are designing holidays without any guarantee of selling them, there are two things that I see as appropriate, and I use both of them from time to time.
- Charge a design fee for creating the itinerary
- Charge it as a non-refundable deposit that will come off the trip price if and when they book.
This is quite important for big tours, as I have known of people asking you to do many hours of work (as you have) and then going price-shopping to other agents to book the holiday.
Cheers
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Steven Cairns
Managing Director
Liberty Tours
BARANGAROO NSW
Original Message:
Sent: 18-01-2024 16:49
From: Norma Keshishian
Subject: Tour Operators Charging Service fees
Hello,
I am wondering should Tour Operators be charging service fees? I am a tour operator and up until now do not charge for creating itineraries. Some are very easy, but others are more involved and have taken me hours to complete the proposal. My income is generated purely from the commission from the booking and only obviously if the proposal is accepted. My conversion rate is relatively high, but still. My question is, should tour operators be charging service fees like travel agents do and are there any tour operators who are currently charging fees?
many thanks,
Norma
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Norma Keshishian
Owner
Destination Artisans
KILLARA NSW
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