Travel agents to begin charging customers for booking flights

Many travel agents in the Republic are to begin charging customers a fee for services they provide.

Many travel agents in the Republic are to begin charging customers a fee for services they provide.

The Irish Travel Agents' Association yesterday said its members were being forced to charge customers because Aer Lingus was about to reduce the commission it paid to agents.

Aer Lingus confirmed its recent decision to reduce its commission to Irish travel agents from 9 to 7 per cent from March 1st.

The new charges to customers will vary from one agency to another, ITAA's chief executive, Mr Brendan Moran, said.

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"It's up to each individual agent to determine an appropriate level of service fees in relation to the services that they provide. It could be anything."

Most Irish travel agents are expected to introduce the fees this spring.

The ITAA president, Mr Fergus Kilkelly, said: "Travel agents will have to incorporate service-fee programmes in order to continue to provide clients with a quality service."

He said the cut in Aer Lingus commission represented a 22 per cent loss in gross earnings for his members.

Mr Gearoid Mannion, a director of Tom Mannion Travel Worldwide Choice in Ennis, said his company would charge for making Aer Lingus bookings when the reduced commission came into effect.

"With any airline that pays under 9 per cent we have no choice but to charge the customer for the service."

He said the firm had not decided what rates would apply, but "it will be calculated on the basis of making up for the 2 per cent. The margins are so tight in our business that when you go under 9 or 10 per cent it's not worth your while to take the booking."

An Aer Lingus spokesman, Mr Declan Conroy, defended the reduced commission. "What we've done is to reduce our commission to bring it in line with the industry average," he explained. The Director of Consumer Affairs, Ms Carmel Foley, gave a measured response to the ITAA announcement.

"My main concern is that it's clearly explained to people what's involved and what is being paid for. Travel agents do provide a good service to people, and it's up to them to demonstrate the added value people are getting from using their businesses," she said.