The best way to determine bargains is to know the method the business earns. Travel agencies have travel packages that seem affordable and truly have no hidden fees but they also have methods to inflate travel costs without their customer's knowledge. Here are five things to remember when finalizing travel agency fees.
Traveler's payments mostly go to travel agents and less so to the latter's partners, which include the travel insurance company, travel services and all agencies in the travel distribution chain. It is only in airline ticket booking that travel agents have less commission as air companies hold better advantage when discussing commission with agents as air travel is essential for any kind of itinerary.
To completely minimize or do away with travel agency fees, travelers could use independent traveling applications that allow deal comparisons online. Travelers not accustomed to using the Internet and technology in researching for travel would often pay more in itinerary packages -- which provides travel agencies and agents about 10 to 20 percent commission according to Chron.
According to Host Agency Reviews, travel agencies now earn commissions through "booking car and hotel" for business travelers. It estimates that agents primarily earn from service fees -- their replacement for earning less from airline tickets, which the agency review website deems as "once the lifeblood of the industry."
Perhaps the biggest travel agency fees are earned through the sale of traditional leisure packages. Host Agency Reviews writes -- citing the 2012 ASTA Service Fee Report -- majority of travel agencies still charge fees for service, tour and cruise packages. The Service Fee report indicated the amount to be $25 for all areas during leisure travel and $50 for cruise booking fees -- which is admittedly a tenuous task. However, the quality of leisure travel is changing and agents may need to shift business models once again
Lastly, to avoid further travel agency fees, it would be best to turn down offers that seem worthwhile from travel agents. These include cancel-for-any-reason insurance (if travelers are sure about their trip) and auxiliary benefits that could make the trip convenient but are completely unnecessary.