At the ASTA's Global Convention last month, the Society introduced a new motto for members that officially endorsed travel advisors charging professional fees. Jamie Biesiada caught up with the board chair to discuss the endorsement.
There is a person named MARC CASTO.
Are you encouraging advisors to charge fees? What's the reason?
We need to update our motto as to what we stand for and who we are as an organization and also who we are as members of the same organization. It was important to let the world know that we are professionals. We should be seen by our clients and our suppliers in a different way. Professional fees are a part of the remuneration system. We changed our name from the American Society of Travel Agents to the American Society of Travel Advisors because we are more than just in the middle of a transaction.
A: Fees have been advocated for a long time. The endorsement is coming now.
The timing is the culmination of a long series of work. We've been focused on membership growth. The organization's goal is 20,000 members. "members of a professional organization" is what we're being very clear with. Some people are travel advisors. The people who will be the best members of this organization are those who live by the code of ethics and the creed. Membership has to stand for something.
What are some common fee structures that are used by advisers? There are more than one model out there.
There are a lot of different models. They can be anything from a per transaction fee to an hourly consulting fee to another per unit economic fee.
When and how much should be decided by us. It's out of our interests. Professional advisers should be charging professional fees.
What arguments do you have against charging fees?
The clients aren't ready for it and the argument is about how it will be received by them. It's difficult to discuss that they haven't been charged those fees in the past. People are willing to pay for this conversation because it has been going on for a long time. If you want to receive professional treatment, you need to establish yourself as such. This isn't something you do for a living. This is an engagement for the rest of one's life.
Do you believe we'll get to a place where most of the advisors charge fees?
We're moving very quickly in that direction. Some people feel like they're more competitive than others, and that's their decision. As an industry norm, I think we'll be there very quickly, if the Pandemic really forced us to have our revenue streams not tied to commission payments.
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