Service fee / Transaction fee

The per-booking fee charged by a TMC or travel platform. It's a separate charge from the cost of the flight, hotel or other travel service itself, and covers the cost of the booking service — whether processed online or through an agent. Service fees can vary depending on the complexity of the booking and whether it's handled online or by phone.

Service fee models vary between providers. Some charge a flat fee per transaction, others use different rates for flights, hotels and rail, and some distinguish between online bookings and those made with an agent's help. Additional fees may apply for changes, refunds, after-hours support or complex itineraries. Some providers also have management fees or subscription charges on top of transaction fees, while others earn income through markups on fares and room rates instead of, or in addition to, visible fees.

When comparing providers, it is important to look at the total cost rather than the fee alone. A low service fee combined with hidden markups on fares may cost more than a slightly higher fee with transparent supplier pricing. Companies should also check what the fee includes — for example, 24/7 support, reporting, integrations and account management — and whether costs increase as the company grows.

Tumodo works on a transparent service fee model: companies pay only for the services they actually book, with no setup fee. With prepayment, the fee is from $10 per airline or train ticket, and hotel bookings carry no service fee. Postpayment options are also available, and companies with more than 100 trips per month can receive an individual offer. Approvals, reports, integrations, 24/7 support and a dedicated account manager are included, and prices come direct from suppliers with no hidden markups.