Do you know when a client's budget is too low?
A potential client reaches out to you for help. They're looking for a travel advisor to book a 3-week trip to England.
You're so excited. It sounds amazing! And you love booking England. What a great opportunity!
Until you get into the details.
They've already booked their airfare. Not a big deal, except they're flying into Amsterdam because they found a great flight price a few weeks ago. They don't want to spend any time in Amsterdam, not even a night. It's purely a stopover on their way to England.
Oh, and they want to take the train to England on the same day they arrive in Amsterdam. Or a ferry. They like that idea more than a train. But they want you book whichever is cheapest.
Their trip is being planned around a writers retreat they're attending in Hull (northern England). A few days of accommodations will be covered by the retreat. But the rest needs to be planned. When they arrive in England, they want to stay in London for a few days before heading north towards Hull. They prefer going by train, but they're open to driving.
They need help arranging accommodations, transportation, and excursions for the whole trip, other than when they're in Hull.
The kicker? They want all of this on a $5K budget.
Can you do it? Maybe. But should you?
At first glance, it sounds fairly doable.
You can probably plan a trip for yourself on that budget, as long as you stay outside the main part of London and travel into the city by train. So of course you can plan it for a client…right?
I mean, it won’t be 5-star accommodations or dining at Michelin restaurants. But it still can be done. At least you think it can.
When you break it down, it quickly becomes clear that this is a LOT harder than you thought. This budget won’t work for a DMC. But you love planning FIT (fully independent travel) so that’s not a biggie. You're looking forward to the work, and learning more about a new part of England.
Once you start looking, you realize it's going to take ages to find hotels that pay commission. Sure, you may be able to find some pubs to stay in that fit the budget. But they don’t pay commission.
You may be able to get some commission from the train tickets or rental car. Maybe a bit from the excursions too. But wow…this is a lot harder than you thought! And it's going to take a LOT more time than you planned.
Situations like this are unfortunately more common than you think.
Many travel advisors don’t take time to calculate what their time is actually worth. They think they can take on any client who asks for help, regardless of if it makes financial sense. And often they don’t realize it doesn’t make sense.
That mindset is exactly what keeps advisors overworked and underpaid. And sometimes, working for free!
So what do you do?
I’m so glad you asked.
Why “low budget” isn’t just about price
A small budget doesn’t automatically mean a bad client. Some travelers are flexible and realistic about what’s possible (or not possible).
The real problem is when a client’s budget is so low that:
It limits options to the point that you’re really struggling to make it all work.
The commission you’d earn doesn’t justify the time and effort required.
The client has unrealistic expectations about what their budget can get them.
Let’s go back to the England trip. They need 18 days of travel (minus the 3 spent at the retreat in Hull) with lodging, transportation, and excursions.
And it all needs to be done within the $5K budget.
When you factor in the exchange rate and think about fluctuations, that works out to about £200 per day.
And that’s for everything! Hotels, ferries, car rental (or trains), sightseeing…everything!
Even if you manage to find bare-bones accommodations and transportation within budget, it’s going to take hours of research, emails, and back-and-forth with suppliers.
If you’re only making about 10% commission (and not everything will be commissionable), you’ll max out at $500 in commission for the entire trip. That’s without counting all of the unbillable work you’re going to end up doing along the way.
Does that sound worth it?
How to calculate what your time is worth
If you’ve never broken down your actual earnings per hour (overall earnings, not just this trip), here’s how to do it.
Start with your total income. Look at your annual earnings from commissions and fees.
Estimate your total work hours. Think about time spent booking travel, handling inquiries, marketing, client calls, administrative work…everything that goes into the time you spend on your business.
Do the math. Divide total income by total hours worked.
Let’s say you made $50K last year and worked 2K hours. That means your hourly rate is $25/hour.
If a trip like the England itinerary takes 20 hours of work, your commission earnings would need to exceed $500 just to break even with your regular rate. Any lower in commission, or taking more than 20 hours to plan and service the whole trip, means your hourly rate is tumbling downhill fast.
And that’s without factoring in the emotional effort of handling potentially difficult clients, itinerary changes (hello train strikes!) and coordinating with suppliers.
Now ask yourself. Why would you take on any job for less than what your time is worth?
The case for charging fees as Travel Advisors
Advisors who rely solely on commission can find themselves in situations where they’re working for free. Sometimes more often than they realize. Charging fees changes that.
A sufficient planning fee ensures you get paid for your time and expertise, regardless of whether the client follows through with booking. If a client wants a complex, low-budget itinerary, a non-refundable upfront fee - one that isn’t applied to their booking - guarantees you aren’t spending hours of work for minimal or no return.
At The Savvy Travel Advisor, we understand that not all hosts are supportive of charging fees. It’s also contingent on regulations in certain states, or your country of residence if you aren’t based in the US. But in general, it is the clearest way to ensure you’re being paid for the work that you’re doing.
Disclaimer: This is not legal or tax advice. Consult an attorney and/or tax professional regarding your individual business. If you’re hosted, check your host agency agreement before making changes to your business model.
Ways to implement fees
Trip Planning Fees: Charge a set amount for itinerary research and customization.
Consultation Fees: Charge for the initial proposal to weed out non-serious inquiries. The proposal could be a self-book or it could be one that you go on to book for them.
Custom Itinerary Design and Concierge Fees: Charge for custom FITs like the England trip. It includes planning and servicing the entire trip.
By charging upfront fees, you filter out clients who aren’t willing to invest in your expertise.
Your fees can also be charged on a sliding scale, depending on the complexity of the trip. On your website, you can be upfront about your fees starting at $XXX amount.
Based on what they’re looking for (discussed on a complimentary consultation call), you can do some quick calculations. While you’re still on the call, let them know what your fee will be for the trip they’re describing. Then it’s up to them if they proceed or not. But no work is done on their trip until the fee has been paid.
Considering charging a fee? Download our free Fee Calculator here.
Let’s go back to the England trip. If you make $500 in commission and spend 20 hours on it, you break even on your $25 hourly rate. But what if you charge a planning fee?
Let’s say the planning took you 40 hours instead of the 20 you anticipated. If you charge a $500 planning fee and expect $500 in commission, you still break even at your $25/hour rate. It's not great, but at least you aren’t working for free.
On the other hand, what if you actually spend the 20 hours you planned and you’ve charged a fee? When you charge a $500 planning fee and expect $500 in commissions, your hourly rate goes up $50/hour.
Charging a significant planning fee starts to make it worth your time, even though it’s a budget trip. Assuming it’s a trip you want to plan.
How to tell a client their budget is too low
Now every client is a good fit, and that’s ok. Here’s how to kindly but confidently say no when a budget simply won’t work.
Acknowledge their request. “I appreciate you reaching out. This sounds like an amazing trip.”
Set clear budget expectations. “For a 21-day itinerary to England, travelers booking with me should be prepared to spend $500/night on 3-star accommodations and $750/night on 4 and 5-star accommodations.”
Offer alternative solutions. “With your budget, your funds can be stretched further if you book yourself. Pubs could be a good option for your budget and the smaller towns you want to visit. If you’re open to increasing your budget, I’d be happy to assist further.
Stand firm if they push back. “I want to make sure I can deliver the level of service you deserve. Given your budget, I won’t be able to create an itinerary that meets your expectations while ensuring the best experience.”
You don’t need to justify or over-explain. When you state your boundaries with confidence, the right clients will respect them.
And if they don’t…they aren’t the type of clients you want to work with anyway.
The bottom line
If you’re serious about scaling your travel business, you have to stop saying yes to every request. A trip that takes 20+ hours to plan should result in meaningful compensation. Not a break-even situation. Or worse, unpaid labor.
By knowing your worth, charging for your expertise, and confidently declining trips that don’t align with your business model, you free yourself up to attract higher-value clients. The kind who trust your recommendations and are happy to pay for them.
Your time is valuable. Start treating it that way.
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