Changing consumer expectations drive advisors to adopt fees: WTAAA

Travel advisors around the world are adopting transparent professional fees in response to a fundamental shift in traveller expectations according to a new study released by the World Travel Agents Associations Alliance (WTAAA).

Otto de Vries, Executive Director for the World Travel Agents Association Alliance (WTAAA), said: “Today’s travellers want complex itineraries, upfront pricing, and 24/7 support, and they want advisors who can dedicate their full expertise to creating the perfect trip. Professional fees enable advisors to be true consultants, not just instruction-takers.”

The WTAAA’s white paper confirms that this shift is now mainstream in key global markets. The report reveals that rather than relying on increasingly volatile supplier commissions, travel advisors are charging upfront for their knowledge, in the same way lawyers or financial planners charge fees.

This change allows them to deliver more personalized service, dedicate time to complex itineraries, reinvest in technology tools like AI-driven trip management platforms, and ultimately offer travellers greater value with full transparency.

Said de Vries: “This marks a new chapter for our industry. We are witnessing a structural transformation where advisors around the world are no longer defined by what they book but by what they know. They’re increasingly being compensated like true professionals, which ultimately delivers more value to travellers through personalized planning, transparency and trust.”

Key findings from the WTAAA’s global study include:

New Zealand leads globally with more than 95% of agencies now charging structured professional fees after airline commissions were cut by up to 100%. This has driven profit margins from under 5% (on commission-only bookings) to between 12–20% per transaction, based on trip complexity.

Europe reports a 66% adoption rate, with widespread use of non-refundable consultation deposits. Among fee-charging agencies surveyed across EU markets:

• 85% report improved revenue predictability
• 60% cite higher profitability
• Client loyalty has increased significantly among those implementing upfront planning charges

In the United States, 55% of traditional travel agencies now charge professional fees through hybrid models combining consultation charges with residual commissions.

In Canada, around 50% of advisors consistently apply service or consultation fees despite confidence gaps reported when presenting pricing models directly to clients.

In South Africa, over 90% of corporate-focused TMCs already operate under transactional service-fee structures; meanwhile leisure consultants are increasingly adopting non-refundable deposits tied to itinerary planning, especially among mid-to-high-income clientele who prioritise risk reduction post-pandemic.

In contrast, fee adoption remains limited across much of Asia-Pacific: only pockets such as South Korea show momentum. In Latin America cultural expectations continue favouring embedded pricing models instead of explicit advisory charges; however, luxury-focused firms show early signs of moving toward tiered consultancy packages.

The WTAAA also reports that while initial client resistance emerged in some markets (70% reported pushback), agencies succeeding with fee implementation focused on clear value communication.

“Clients don’t reject fees, they reject poorly communicated ones,” noted a German agency in the study. “When we explain that our €150 deposit covers ten hours sourcing exclusive villas and negotiating group rates, they see the investment value immediately.”

The research identifies emerging fee models mirroring other trusted professions: consultation deposits, project-based pricing for complex itineraries, subscription memberships for frequent travellers, and corporate retainers.

According to de Vries: “This evolution positions travel advisors where they belong, as trusted professionals whose expertise commands fair compensation. The future belongs to those who confidently charge what they’re worth, because great advice isn’t free.”

Go to www.WTAAA.org for more.