Navigating the sensitivity of introducing service fees

Navigating the sensitivity of introducing service fees

If you’ve been reluctant to start charging for your service – don’t worry, you aren’t alone.

Why now? The bigger question is, why haven’t you been doing so already? Never undervalue your worth. (Consider other service providers like financial advisors or personal trainers. Do you hesitate to pay them?) Do you feel uneasy about implementing service fees, especially with loyal, long-term clients?

There’s a mix of discomfort and fear of appearing pushy. Rest assured, you’re not alone – many advisors still don’t charge fees, which baffles me!!

What to call it: Options abound, from service fee to research fee, consulting fee, or management fee. Choose what feels right for you and your business.

When to introduce new fees (or even a fee increase): If you’re not already charging, the beginning of the year, even the beginning of a quarter is a good idea. Send an email to your clients introducing your fees, explaining the why and the when.

How much to charge: Fees vary widely by advisor, from a minimal ticketing fee to thousands for a complex itinerary, to a menu of service fees for each different type of booking, or even an annual retainer fee. Again, set fees that work best for you and your business. Ask other advisors/colleagues and consult with your host agency for ideas. And yes, the plan can change over time.

When to discuss it with clients: Always up front, right at the beginning of each new trip discussion. Charging up front improves cash flow, unlike commissions which may take months. For new clients, this is easy – there’s nothing to change except your confidence!

How do you get that confidence: Practice! Especially if you’re new to this, rehearse with friends, colleagues, or family members. Anticipate objections and reasons for resistance, and prepare responses like:

  • “Clients appreciate that if anything goes wrong post-booking, it’s my concern, not theirs.”
  • “I offer years of expertise with insider knowledge and industry relationships to get you access to experiences and complimentary benefits you won’t find online.”

Bear in mind, any client who is refusing to pay is not a client worth keeping. Remember, you get paid commission for the work you do for the partners, not for your clients.

Countless advisors have embraced charging for their services, feeling prouder and receiving positive feedback from clients. It’s time to recognize your own value.






Get travel news right to your inbox!