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DEFINITION of 'Service Charge'. A type of fee charged to cover services related to the primary product or service being purchased. For example, a concert venue may charge a service fee in addition to the initial price of a ticket in order to cover the cost of security or for allowing electronic purchases.
The necessity to cut production costs especially with the development of LCCs, with low-cost meaning low production costs and not low fares, even if the two are closely linked. 4 Service Fees and Commission Cuts 1 This new step meant that travel agencies received a 10% commission on all tickets up to 500 USD.S agencies charge the most for trip planning and research (on average 65 USD).The US experience shows that once travel agents overcame their initial hesitation to charge service fees, they quickly discovered that the implementation of service fees did not result in a loss in clients.