To me, paying $250 seems excessive unless there are some very special circumstances. I wonder whether the fee is just a way to discourage clients that this agent doesn't want.

In fact, except for the recent airline ticketing fees (which I've paid for a few complicated international trips), I don't pay travel agent fees but expect them to be paid by commissions. An exception would be some very complicated arrangements where the travel agent has invested a lot of time researching your trip for you. Usually I know what I want or at least have identified a few hotels of interest and just need to compare rates and benefits. I've always done tourist stuff independently rather than either taking group tours or arranging private tours.