FlyerTalk Forums - View Single Post - Do Virtuoso & FS Preferred Partner Travel Agents charge a fee for hotel bookings?
Old Jun 14, 2011, 2:16 pm
  #23  
ajinlondon
 
Join Date: Aug 2003
Programs: BA, LH, BD
Posts: 1,469
Originally Posted by Jasper2009
I would understand it if an agent charged a booking fee for organizing an entire trip including airfare, ground transportation, hotels, private guides etc. and has to invest quite a bit of time to organize the itinerary (plus some of the things listed above are generally not commissionable).

But charging an extra fee for making a simple hotel booking or looking up rates/amenities?

AFAIK TAs receive 10% commission at most hotels. Rates at hotels associated with Virtuoso rarely cost less than $200/night and often can be >$1000/night, so the TAs get a decent kickback most of the time.

That is an assumption that the hotel actually pays the commission, which would be nice if they did. But unfortunately it is not always the case, and many hours can be spent chasing this down, for what $20? not really worth it in some instances, also knowing Expedia/ T.City get around 20% ++ for the same room/rate and do what for this payment?


But as you rightly say if someone only wants a straight forward hotel booking then no fee is charged. Though I expect fees for hotels or anything done by TA's are likely to increase as loyalty to agents decreases.

The other thing which is probably not recognised in the hotel only scenario

- client calls up "I want a hotel in NY around $400 for a luxury room near times sq for one night"

Travel agent gets to work, for a potential $40.

Virtuoso hotels, consortia rates (ABC, CCR and in house rates) the hotel website and the other OTA's (expedia etc) all need to be compared for a suggestion on 3/4 hotels. As I would expect most people on FT would double check the rates they got offered were the best available. If the agent happens to miss a special deal somewhere does he get the booking?

Last edited by ajinlondon; Jun 14, 2011 at 2:33 pm
ajinlondon is offline