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I agree with Miles, the change in the law does mean a big change for most travel agencies and a lot of companies will be looking at how they can reduce these additional costs when margins are already tight. The issue you will always have is that clients will always want to pay on a credit card to get the "additional protection" and I suspect more will take advantage of this now the fees are no longer able to be implemented.
Most Tour Operators have negated this problem by increasing their operating margin levels across all bookings to account for the additional payment costs, but how does a Travel Agent cover these costs? Well increased commissions from a Tour Operator will help offset these. Or encouraging clients to pay by BACS or Paypal will help offset the additional charges. Another option which is to go the way of the USA (although this will be the most unpopular solution, I admit) and pay the operators directly with the clients card details and the commission is paid after departure. That way the card payments costs are met by the tour operator.
Miles Morgan. why should the travel industry make more money out of the CUSTOMER The law says from Jan 2018 you must not charge for a customer using a card but you are saying that one way round this is to charge a booking fee which no doudt will be more that the charge you used to use when customers paid by card. Mr Morgan stop conning the customer who after all PAY YOUR WAGES
Oh dear, Mr Steve Kane's at it again.
The Agency is NOT making more money.
Typical travel agency works on 2-4% profit margin.
If the credit card company is going to charge 1.5%-3% for accepting the card, then the agency needs to re-coup (I know, a big word for you) that loss.
Booking fee's are 100% legal, so it's simple logic to change the wording from '2% Credit Card Charge' to '2% agency Booking fee'. Legal.
Well done Julie, Mr Kane does understand that the banks make these charges and all an agent can do is pass them on (plus VAT of course). Now we still have to pay the banks, but can not recover these charges.