Demystifying the economy | Travel agency commissions

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Basically, travel agent compensation comes from commissions paid to them by tour operators, airlines, cruise lines and hoteliers. These vary according to the volume of business of each agency, specifies Justin Bordeau, president of Voyages Arc-en-ciel, in Trois-Rivières. Thus, larger agencies get a higher percentage.

For consumers, this commission does not change the selling price. “The prices of flights and packages sold in agencies are the same as those indicated on our website,” says Air Transat spokesperson Bernard Côté.

Moreover, throughout the country, companies that sell plane tickets use the same electronic platform developed by Softvoyage, adds Justin Bordeau.

Misperception

The urban legend that online prices are more attractive than in agencies persists, however, relates Moscow Côté, president of the Association of Travel Agents of Quebec.

To these commissions are added, more and more often, booking fees – also called management fees, administration fees, service fees or professional fees. These vary from 0 to 85 $, indicates Moscow Side, while specifying that this amount is especially invoiced with the purchase of inexpensive flights. A $400 Montréal–Toronto ticket can earn the travel agency the modest sum of $7.50 in commission. This is little considering the working time required to make the customer’s reservation. “For flights in Europe, it’s rare that there are fees, because the commission is enough,” he says.

But some agencies systematically charge their clients, judging that their expertise has value and that it deserves to be paid, continues Justin Bordeau. “Most retailers [les agences] charge a professional fee to their customers to accompany them in their formalities, to answer their questions, to inform them about the entry and exit requirements of the countries, to inform them about the conditions of reservation and to provide them with advice on the destination “.

Each agency establishes its price list according to its own criteria, such as the price of the ticket or the type of trip (South package, cruise).

Remember that trips purchased in agencies holding a permit from the Office de la protection du consommateur (OPC) are covered by the Compensation Fund for customers of travel agents (FICAV). The purchase can be made online, over the phone or in person.

This financial protection is not offered for purchases made directly from a supplier (airline carrier, hotelier, etc.) or from an agency located outside Quebec that does not hold an agent’s license. trips. FICAV reimburses when services – flight, guided tour, overnight stay – are not received due to bankruptcy, unexpected closure, strike, storm, delayed flight, etc.