Travel agent margins: what is reasonable?

One of those "what do you think" questions...

We all know that travel agents have to get paid, and their wages, office costs and so forth come from the passenger. I suppose that usually they get a percentage of the flights and hotels and so forth that they sell, and we never really know how much. And so long as they add value to our trip, that is fine.

Anyway, someone I vaguely know is organising a group tour to a place where she has specialist knowledge. Total cost (food; tours; transfers; accommodation; guides etc.) is likely to be around 350 pounds. On top of that, there is a fee for organising it. Do you think that a fee of 200 per person (or 300 per couple) is excessive?
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Comments

  • Heliflyguy
    Heliflyguy Posts: 932
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    Is she a travel agent and is this through an agency she works for or is it as an independent TA.

    So comes down really to the overheads but what is excessive is charging £50 more for a single person compared to a "couple".
  • Mr.Everready
    Mr.Everready Posts: 198 Forumite
    So the actual trip cost is £350, but with "fees" it's £550 ?


    How many are in the group ?



  • Voyager2002
    Voyager2002 Posts: 15,244
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    She is an independent educator with specialised knowledge of the destination.

    The group is to be five.

    An estimate of costs per person is up to £350, but the admin fee (£200) is on top of that.
  • EssexExile
    EssexExile Posts: 6,110
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    We have no idea what value this person will be adding to the trip. Will it change it from a boring disorganised wander around somewhere to a stimulating fun-packed adventure taking in all the interesting & exciting sights?
    Tall, dark & handsome. Well two out of three ain't bad.
  • NoodleDoodleMan
    NoodleDoodleMan Posts: 3,305
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    How long is the trip ?
  • mattyprice4004
    mattyprice4004 Posts: 7,492
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    You’re not just paying for the lights to stay on in the agency, you’re paying for their years of knowledge in the field.

    I’d say it’s perfectly reasonable for them to charge a large premium - they’re putting the package together and have used their experience to create the holiday for you.

    Can’t have something for nothing - at the end of the day, if you’re not happy to pay their margin then put it together yourself.
  • Voyager2002
    Voyager2002 Posts: 15,244
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    It is about four days...

    I am confident that with a couple of hours on-line I could put together something that is almost but not quite as good, but of course then I would not have the company of the rest of the group.
  • Pollycat
    Pollycat Posts: 34,578
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    Is the £200 fee (on top of the £350 trip cost) transparent to the people booking?
    Or do you just know about it because it's someone you 'vaguely know'?

    If I was considering booking a tour at a price of £550 and thought it was good value for money, I would book it.
    If I was booking a tour at a price of £350 plus £200 for 'specialist knowledge' that would enhance my enjoyment of the tour, I'd make a decision as to whether I'd get £200-worth of benefit from that specialist knowledge.

    Or maybe I'd just do as you have done and "put together something that is almost but not quite as good" and compare whether my 'not quite as good' experience was good enough or if the organised tour really is worth the extra £200.
  • Voyager2002
    Voyager2002 Posts: 15,244
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    Pollycat wrote: »
    Is the £200 fee (on top of the £350 trip cost) transparent to the people booking?
    Or do you just know about it because it's someone you 'vaguely know'?

    If I was considering booking a tour at a price of £550 and thought it was good value for money, I would book it.
    If I was booking a tour at a price of £350 plus £200 for 'specialist knowledge' that would enhance my enjoyment of the tour, I'd make a decision as to whether I'd get £200-worth of benefit from that specialist knowledge.

    Or maybe I'd just do as you have done and "put together something that is almost but not quite as good" and compare whether my 'not quite as good' experience was good enough or if the organised tour really is worth the extra £200.


    The fee is perfectly transparent.


    The combined trip is worth (to me) the £550, although the added value as compared to what I could do for myself does not amount to £200.
  • daveyjp
    daveyjp Posts: 12,468
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    £800 to £1,000 for 4 days work doesn't appear excessive to me.
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