Corporate T/A rip-offs

[DTM1]

I just found out that our corporate t/a charges just under $200 for preparing a quote for international travel. I could not believe it !

They're a t/a for goodness sake - that's what they are supposed to do !

While they incorporate the charge into their costs at the end of the day, it gives them at least $200 leeway to be more expensive than other fares (or to pocket the excess). - and it's not as if their fares are even particularly competitive in any event.

If a client asked me for a quote and I charged them for preparing the quote, they'd take their business elsewhere, and rightly so.

Has anyone else come across this ?

 

[NM]

We get charged a booking fee only if and when the ticket is issued. There is no fee just for a quote. We pay $18 for domestic itineraries booked on-line via their corporate portal system, $35 for domestic itineraries booked manually, and $99 for all international itineraries (including fares like OneWorld Explorer).

 

[DTM1]

our booking fee (which is similar to NM's - and is entirely reasonable in my view) is on top of the quote fee. It's the quote fee that really gets me.

 

[creeno]

I think TA's have had to head in this direction with the erosion of airline commissions. I know of many an agent who has spent considerable time preparing quotes, only to have the client take the quote to another agency to match the price...easy for the other agent as the work is all done....disappointing for the agent who has done the work!

Anyway, I am sure many here will have views on both sides of the equation...

 

[NM]

I know of many an agent who has spent considerable time preparing quotes, only to have the client take the quote to another agency to match the price...easy for the other agent as the work is all done....disappointing for the agent who has done the work!

That should not be a concern for a corporate travel agent. Certainly not a concern for ours as we are not allow to use any other agent for our corporate bookings. The only risk is that the trip will not go ahead.

 

[littl_flier]

The main reasons TA's have had to make a move towards charging fees is the elimination of commissions on cheaper fares and the vast reduction in overrides and superoverrides from the airlines for obtaining a certain level of sales each contract year. Travel Agent's used to receive up to 10% superoverrides for meeting their top tier contractual requirements whereas this has been whittled back between 1-3% with QF in particular dropping the value that they pay. If the Travel Agent isn't recieving this income, they need to find other ways to generate income to keep the bottom line black.

As for corporate travel agent's, I know our old corporate travel agent received no commission from Qantas for our domestic travel as it's all based on private fares negotiated directly with Qantas. (but the $ value of sales was included into the superoverrides targets) We were charged a 10% base fare charge for domestic booking so for Y class domestics to BNE-SYD this was around $60 to $70. Under our new agent, there is no charge for booking online but a hefty fee for booking manualy with an agent and a flat fee for International travel.

 

[dajop]

I think our corporate T/A has a certain number of free quotes before charging (although I think they are more likely to charge for a quote for individuals that do a lot of mucking around). I've certainly never been charged for a quote, but I know one of my staff members has evil: ) because he was mucking around with an unnecessarily complex itinerary, and changing his mind etc (actually he was doing the sort of complex itinerary I would do, but getting the TA to do all the work, whereas I use the various information sources available on the web - including fare rules, availability and route distances thanks to AFF - so that I know exactly what I want and how it fits together - as one has to for MR's - by the time it gets to the TA).

 

[Travel Guru]

I think until you've worked as an agent, and done hours of work putting a quote together only to have a client go and book it online to save $10 (without exaggeration), then you can't appreciate just how much time people who would sell their own grandmother for $5 can be.

In my own agency, we charge a quote fee for new clients only which is completely at the discretion of the agents, and is basically there to ensure those agents (who yes, do work on commission) receive something for the effort they exude and limits tyre kickers from using up their time and sucking their knowledge out of them when they had no intention of booking in the first place.

Its definately a direction the industry is moving to, and you'll see it becoming alot more common over 2008 and beyond, and really, when you consider it, is fair and reasonable for both parties.

I can't say I understand why a corporate agent would bother charging it, especially when most corporate agents have exclusivity with their clients.

TG

 

[DTM1]

I completely understand Travel_Guru's point.

However, two points in response:

1. as NM said, this is a corporate T/A; and

2. it's not as if I was causing them much work (unlike some other travellers) - I had already planned out my travel itinerary and decided it would be a DCIRC26 - there should be nothing more for the T/A to do than input the sectors and add up the miles and check minimum stopover times to make sure it complied.

Unless I'm missing something, there shouldn't be any more to it in this case.

While I do understand charging for complex bookings, even that shouldn't be the case where you are generally a captive customer.

 

[alien]

My corp T/A charges $20 for Dom. not sure on international though. No charge for a quote.

I would start and re consider your account with them and let them know that you aren't happy with the charge. It's not as if they don't get fares from your company so why charge i reckon. I can understand if not a client already.

 

[Travel Guru]

I completely understand Travel_Guru's point.

However, two points in response:

1. as NM said, this is a corporate T/A; and

2. it's not as if I was causing them much work (unlike some other travellers) - I had already planned out my travel itinerary and decided it would be a DCIRC26 - there should be nothing more for the T/A to do than input the sectors and add up the miles and check minimum stopover times to make sure it complied.

Unless I'm missing something, there shouldn't be any more to it in this case.

While I do understand charging for complex bookings, even that shouldn't be the case where you are generally a captive customer.

I agree with you 100%

Obviously management need to offer their consultants some discretion about when they do or don't charge it.

I dont see an issue with it as a whole, especially if its going to be taken off the total bill, but for a corporate agency to charge it is a bit over the top.

TG

 

[NM]

While I do understand charging for complex bookings, even that shouldn't be the case where you are generally a captive customer.

You probably need to ask your corporate travel coordinator about the policy and agreement your company has with the TA. In our case its a global agreement with specific localisation. And yes, its an exclusive agreement and staff are not allowed to go outside the policy, so the corp TA knows that they will be booking ALL our corporate travel.

 

[straitman]

You probably need to ask your corporate travel coordinator about the policy and agreement your company has with the TA. In our case its a global agreement with specific localisation. And yes, its an exclusive agreement and staff are not allowed to go outside the policy, so the corp TA knows that they will be booking ALL our corporate travel.

We have almost an identical arrangement as NM with this. The TA charges a low fee for a domestic booking and a higher fee for an international booking and nothing for booking accommodation. (I don't recall the exact figures) They have an exclusive agreement to which we have very little options to go outside of.

 

[Travel Guru]

We have almost an identical arrangement as NM with this. The TA charges a low fee for a domestic booking and a higher fee for an international booking and nothing for booking accommodation. (I don't recall the exact figures) They have an exclusive agreement to which we have very little options to go outside of.

Yes but are you talking about a quotation fee or a service charge there straitman?

A service charge is common throughout retail, corporate and other areas of travel to cover what the airline once would have paid and prevents the agent from doing the work for nothing.

TG

 

[Reggie]

Our TA charges us nothing for our quotes, but basically we take all our quoted flights. They do charge us a booking fee.

They do however charge a quote fee for those who come in of the street, as some else said, the numbers who come in and get the agent to do the work and then go off and book it themselves is unbeleivable.

 

[Travel Guru]

Our TA charges us nothing for our quotes, but basically we take all our quoted flights. They do charge us a booking fee.

They do however charge a quote fee for those who come in of the street, as some else said, the numbers who come in and get the agent to do the work and then go off and book it themselves is unbeleivable.

It's unbelievable yes, but don't think we don't kill ourselves laughing when they stuff their booking up and are left on their own after they've screwed over one of the agents.

TG

 

[bambbbam2]

I work for a govt. department and we pay a flat fee of 23.90 through Carlson Wagonlit for a domestic, not sure about int'l.

 

[kpc]

I work for a govt. department and we pay a flat fee of 23.90 through Carlson Wagonlit for a domestic, not sure about int'l.

Carlson Wagonlit charges $195 for international

 

[GDSman]

Having seen a lot of corporate tenders I would suggest that unless you have visibility of every element of the deal - rebates, discounts, nets, commission shares - then it might be a bit unfair to compare 'apples' with 'oranges'. Surely the procurement process that selected the agent in the first place would have taken all fees and benefits into account?
More and more agents are using 'innovative' models to apply price where cost exists - the old remuneration system never allowed for this......

 

[pauly7]

I have a question, a little OT but interesting.

Recently flew home , booked and paid with QF / JQ direct.

Get back to work, and my VP has emailed saying that our corporate travel agent has written to make sure that the travel i undertook was personal, not corporate (and therefore breaking our contract with them). They somehow tracked my travel.

Apart from the breach of privacy which I'm not very comfortable about and working out how to respong, has anyone had this happen to them? How would a travel agent track travel by other people when they haven't booked it?