Been there, done that and happy to share, for a price, their savvy and expertise. That’s the objective of travel advisors. And there’s nothing quite like having an insider plot your trip, say financial professionals who rely on travel advisors both for their clients’ travels and their personal jaunts, too.
“Think about the many opportunities you might have lost without a knowledgeable sparring partner to inspire and guide you, so you stay on track within your dreams, objectives and possibilities. This is where you might regret having underestimated the value of a knowledgeable and trustworthy advisor,’’ says Tobias Maag, CFP, an independent advisor and mentor/coach based in Switzerland.
Maag has used travel advisers for international study-group forays and strictly tourism trips.
“The tourism travels (were) to explore new places and cultures, or mixed business-leisure travels, where time for exploring and/or relaxing needed to be optimized. The duration and budgets varied a lot,’’ he says.
“The real differentiator will be in the details, and the handling of the unexpected. One will mainly notice the added value when running into any unforeseen issue, like cancelation of flights or services, overbooking, turmoil at your destination, and so many other surprises,’’ Maag says.
In a New York Times story on travel advisers, Julie Weed wrote that these insiders excel at fine-tuning an itinerary: “Those specializing in cruises might know which cabin to choose if you are prone to seasickness, while a safari planner could help you decide which park would be best for bird-watching or seeing specific animals, like rhinos.’’
Fees May Be Negotiable
The American Society of Travel Advisors (ASTA) and Travel Leaders, a network for professional travel agents, have websites that can get travelers and their advisors started on planning a trip.
In his experience, Maag says advisers have typically charged a flat fee — $100 to $500 per trip — or a percentage, of 5% to 10% of the total value of the travel package.
“When the client is corporate or a larger group, certainly much is negotiable,’’ Maag says.
Rob Schultz, CFP, a wealth manager and senior partner at NWF Advisory Services, Inc., in Los Angeles,
says the expense of a travel adviser is worth it to his clients, and to him, too.
“With clients that are all high income earning, the efficiency of using an expert to plan an experience pencils out,” he says.
Peace of Mind, Too
“The other area that is incredibly important but often overlooked is the handoff between different transportation methods,” says Schultz. “For my own family on a trip in Florence a few years ago, someone came to our resort and dropped off a BMW which we drove to Rome and there was someone waiting at the hotel out front to receive the car upon our arrival.”
“This reduces the amount of details that need to be considered and time away from exploration, which is why you’re there,’’ he says, noting that a travel advisor provides peace of mind, ease of movement and insider information.
“The time spent researching really does cost money. Experiences such as a mask-making class in Venice have been wonderful and unique. These are not the sort of activities that are mass marketed because they are usually just for a small group or family,’’ says Schultz.
A ‘Necessity’ of Luxury Travel
Shane Moore, a CFP professional based in of Austin, Texas, considers travel advisers a necessary component of luxury travel, keeping clients far above the horror of cancelled flights and overbooked resorts.
“Luxury travel is one of the key elements of our comprehensive wealth management process. Many of our clients are sudden wealth recipients (retirees, inheritors, etc.) and may not have experience with luxury travel.” — D. Shane Moore
“Luxury travel is one of the key elements of our comprehensive wealth management process. Many of our clients are sudden wealth recipients (retirees, inheritors, etc.) and may not have experience with luxury travel,’’ says Moore, a managing partner with Quartz Financial.
“Since the destinations can be overwhelming, we believe an experienced travel specialist is essential” for these clients, he says. “It also aids in their overall financial planning process as we can help develop the budget and incorporate in their future plans. Last, but not least, it’s fun to be involved in this exciting aspect of our clients’ lives!’’
His clients’ trips have ranged from 10-day cruises of Alaska to multi-week trips to Europe. Italy is currently being a popular destination, Moore adds.
More Perks
“Also, many travel advisors participate in travel networks and can often provide perks (breakfasts, waived resort fees, etc.) on simple domestic travels,” says Moore.
“Our clients have appreciated the experience of the travel advisor to help plan the overall logistics from getting to the destination to tours and sightseeing and even dining recommendations. They can usually find and provide travel perks such as ground transportation and stay upgrades,” he says. “Mostly though, experienced travel advisors can alleviate the overwhelming nature of planning large trips.’’
Moore’s clients pay travel advisers for planning fees that include research, itinerary development and bookings.
“I’ve seen this fee start at around $175 for more straightforward itineraries such as a luxury cruise but it could be higher for more complicated trips. Most of their compensation generally comes from commissions,’’ Moore says, referring to travel advisors.
Favorable Pricing is Possible
Kashif A. Ahmed, CFP, and president, American Private Wealth, Bedford, Mass., says travel advisors can be a bargain.
“Their price is not that much higher than if you tried to piece it together. Many times, travel advisors have existing relationships with hotel chains, all-inclusive resorts, etc. and you can get favorable pricing because you are their client,” he says.
“You can also give the advisor a wish list and a budget (like I did once for a Scandinavia trip) and they will come up with an itinerary for you,’’ Ahmed says.
Ahmed works with travel advisers who research a destination and present the client with an itinerary in a summary format.
“For example, ‘Here is a castle you should visit, and here is a brief history for you,’” he says. “And in my case, they even bought the tickets in advance and put them in the folder for me.’’
Paying for Travel: Do’s and Don’ts
Ahmed advises against using investments to pay for travel.
“Our clients pay from straightforward bank accounts. You do not want to invest your vacation money (in) stocks or bonds, because you may be down on your balance when you need to pay for the trip,’’ he says.
Schultz of NWF Advisory Services says most of his clients pay for travel with money from savings accounts.
“Usually the timeframe is so short that we’re not investing for it and so we build up additional cash throughout the year in anticipation above the target savings reserve. Occasionally, we’ll use a Treasury bond but most likely it’s just sitting in a high-yield savings account,’’ says Schultz.
And Moore of Quartz Financial says clients most often pay with money from “normal investment or savings accounts — not retirement accounts.”
“When we’ve known ahead of time about upcoming travels, or even ‘maybe’ trips in the near future, we can work these costs into normal distribution planning by matching their portfolio to the planned cash needs, he says. “A few clients pay for their trips over time, sometimes as long as 12 months in advance. These installment payments are easier to work into normal budget planning.’’
Maag, the Switzerland-based financial advisor, says there was no one simple answer to how his clients financed their travel advisor-assisted-trips because each situation is unique. “But ideally, the related expenses were budgeted ahead,’’ he says.
Positive Feedback
Is the expense of using a travel adviser worth it?
“From most feedback I have had, yes,” says Maag. “Obviously one can go ‘hybrid,’ delegating part of it to an advisor, and taking part of certain things by him/herself. In the case of the international Study Group, initially we would set up a package including flights. Unless a participant specifically requests assistance on this, we just inform when they need to arrive and can depart, so they can eventually pay for (the) flight with miles, etc.,’’
Moore said client feedback has been strictly positive. “The convenience and perks seem to easily outweigh any additional costs,’’ he says.
Ahmed says he personally almost always uses a travel adviser when traveling abroad, especially on leisure trips with his family.
“I have recommended that to clients and they have had nothing but positive outcomes and feedback,” he says. “They love how they can outsource the planning of the trip, and simply then enjoy the trip that has been laid out, step by step. Not only that, but the peace of mind that if there is any snafu, you have a dedicated person to call, not some 800 # or a website!’’
And was the expense worth it?
“Absolutely! The real value is having an actual person to talk to if something goes wrong,” says Ahmed. “For example, I had some issues with the driver for sightseeing in the Middle East. I emailed my agent, and next day, I had a new driver, fluent in English, and in a brand-new car, too!’’
