How does TA's pay work?

[mickym]

I have a TA who seems less then happy to get us the price reductions. How does this affect their pay? What percentage of their sale do they get from the cruise line?

[Arwenmark]

They get all of their "pay" from the commissions they get from Cruiseline or whoever the travel is with, they used to get it on air tickets but no more which is why they often charge a booking fee for air tickets.

Obviously if your fare goes down do does what they get.

[paul929207]

But they should also know that the small increase they get for keeping your fare up will be more than offset by the loss of your future business.

 

I would let the TA know that you are not happy and, if you don't get the price reduction you will look elsewhere in the future.

[Aunty Pat]

A lower fare will reduce the amount the agency is paid by the cruise line. The percentage varies by cruise line and how much volume that agency does with the specific cruise line in a specific time frame. The individual TA’s pay maybe based on that commission, an hourly rate, salary, sales volume or a combination of these. Some agencies/TA”s charge a planning fee in addition to the cruise fare. Some charge a change fee for spending the time on the phone to get the lower rate from the cruise line.

Aunty Pat

 

Barefoot Windjammer - Phantom ‘81

K&D German Rhine Line ‘84

NCL - Norway ’85, Pride of America ’05, Southward ’87, Star ’97 & ‘05, Starward ’92, Sun ’02 & Windward ’93

RCC - Song of America ‘89

American Hawaiian - Independence ‘98

HAL - Volendam ’99, Noordam ’06, Oosterdam ’07 & ‘09, Statendam ’02 & ‘08, Prinsendam ’03 & ’06, & Zuiderdam ’04, ’06 & ’07, Westerdam ‘09

Carnival - Spirit ‘05

Celebrity – Summit ‘05

Cruise West - Yorktown Clipper ‘06

Princess - Golden Princess ‘07

A & K - East Queen ‘07

Cunard - QM2 ’08

Pending Cruises:

Oceania – Insignia, June 17, 2010

[MaiTaiMary]

I was a Travel Agent a long time ago.

We had preferred cruise lines we got more commission for. The agency received anywhere from 8-15%.

I split everything over 10% with the owner.

So if the cruise fare was, say, $1800 the commission for a 15% cruiseline was $270. I got $135 of that. If it was a 12% cruiseline, I would have received $108, etc. etc.

 

 

(gosh, I hope I did that math right. I have kids running all over the place as I type! :o )

 

 

I totally agree w/ paul929207. If the client is happy, they'll come back. That's what matters. I was always happy when the cruise fare came down because I loved giving good news! :D

[ATL2LAS]

I have a TA who seems less then happy to get us the price reductions. How does this affect their pay? What percentage of their sale do they get from the cruise line?

 

You need a new TA. Now, did you ask your realtor how much they made when you bought your house?:eek:

[mickym]

Yes, she seemed really nice when we booked the cruise but each time I call and ask her to give the cruise line a call because there has been another drop she gets more curt and now she isn't answering my emails. We are traveling with a group of 12 so each time it goes down she looses out twelve times and gets more work out of the deal. It really makes me feel like I am a real pest and pain but I work hard for my money and it's hard to pass up these price drops. I am thinking the next time I will just book through the cruise line so I can do my own calling and not feel like I am bothering someone.

[piper28]

Now, did you ask your realtor how much they made when you bought your house?:eek:

 

Probably not the best analogy. If you read your closing paperwork (which of course you should do), it's spelled out there. (Well, at least the amount paid to the agency, which is probably a similar situation to this).

[relaxandenjoy]

The business model for the travel industry has changed significantly over time. I started as a TA in 1990. At that time, all earnings were a straight commission paid by airlines, hotels, car rental companies, and cruiselines. By the time I left the business in 2006, most commissions had been eliminated and revenue streams had shifted to other areas including service fees, contracts to provide certain amounts of business with specific companies, "overrides" for exceeding certain levels, and corporate contracts.

 

I've been out of the business for a few years but I imagine it continues to evolve. It would be hard to say how any specific TA is paid as it is dependant on the way the agency is structured.

[Jade13]

Now, did you ask your realtor how much they made when you bought your house?:eek:

 

Yes, and it's disclosed on your closing paperwork.

[blindrid]

Yes, she seemed really nice when we booked the cruise but each time I call and ask her to give the cruise line a call because there has been another drop she gets more curt and now she isn't answering my emails. We are traveling with a group of 12 so each time it goes down she looses out twelve times and gets more work out of the deal. It really makes me feel like I am a real pest and pain but I work hard for my money and it's hard to pass up these price drops. I am thinking the next time I will just book through the cruise line so I can do my own calling and not feel like I am bothering someone.

 

Reding between the lines, you may be a higher maintenance customer than you realize. When you mention price drops (in plural) that means you are calling several times to see if you can get the reduction. I've seen prices change almost instantaneously and by the time you may call the price has moved again. That or you may not be eligible for any price reductions whether it's new booking prices, you've already paid in full or whatever. I may be the odd one out on this one but I never check prices after I book and don't expect any price reductions just like I would not want to pay a higher rate, if it increases.

 

That and I could care less what a TA makes or does not make off of my transaction. It really doesn't matter.

[mickym]

Yes, you are probably right on this one. I have become become very an annoyance and I really don't want to do that. The reason I inquired as to how TAs are paid is to try to understand our TA's motivation and make the decision as to if the problem is me becoming obsesive compulsive here and if so try to calm it down. I really hate being a problem for anyone. I saved each of us $300 a couple a couple weeks ago and I think it drove me to compulsion a bit but it is hard to get myself to stop checking and asking for more. I'll try to get it under control and try to be more understanding of my TA on this. Thanks everyone.

[MaiTaiMary]

How the Travel Agent is paid varies from agency to agency. Where I worked, some of the agents were just salary, no commission (or rather, the commission went straight to the owner). Others were 100% commission, no salary. Then there was me, who just split anything over 10%. No way to really tell how much your specific agent is making, unless s/he tells you.

[G'ma]

Yes, she seemed really nice when we booked the cruise but each time I call and ask her to give the cruise line a call because there has been another drop she gets more curt and now she isn't answering my emails. We are traveling with a group of 12 so each time it goes down she looses out twelve times and gets more work out of the deal. It really makes me feel like I am a real pest and pain but I work hard for my money and it's hard to pass up these price drops. I am thinking the next time I will just book through the cruise line so I can do my own calling and not feel like I am bothering someone.

 

Obviously, the TA is tired of losing money...which is what happens everytime your price goes down. In addition, she is spending a lot of time making phone calls on your behalf....

 

Most agencies are in business to make a profit, not turn their commission back or lose money on the deal.

 

Book direct next time....deal with the cruise line yourself.....

[MICHLEV1974]

I worked at a TA for awhile as well and was paid a straight hourly rate. Others in the office were commission-based. The hourly folks typically called to get the price reductions and fares adjusted and the "busy work" type stuff so the commission folks could do the commission based work.

 

If you are the type of traveller that likes to watch for fare drops, booking directly with the cruise line will make your life smooth and guilt free (as you indicated you don't want to be a burden or put anyone out).

 

You could ask your agent what the proper protocol is when you recognize a price drop...should you call, email, fax. They should be appreciating your business and future business. The economy is tough on us all and I would hate to think the TA is snubbing you for a few dollars on commission, especially since you are booking a trip in the middle of a downturn in the economy...seriously, I am sorry you are being ignored. TA truly needs our business.

[amberben]

I have been on to my TA about refunds on our up coming cruise and today he came back with this email to say why I cannot get any.

have advised me fully of how the policy works;

• If the senior rate means that the price is less, then they will reduce the fare. They do take into account though the air fare also. Basically the cruise fare has come down (£238.00pp) however the air fare has increased significantly in price (now £250.00pp more than when you booked).
  
• So basically, if they put you onto the senior rate then the full fare is re-calculated, so you would end up paying £12.00pp more.
  

So the rate is re-calculated, however they do not give you the cheap airfare and then the cheaper cruise rate, you either get the rate at time of booking or the senior rate which in this case is more when it is worked out.

I hope this makes sense.

Is this correst.? As another person on my cruise has had refunds given and another an upgrade.I am flying fron the UK.

[Jesscap5]

I know some agents who get an hourly rate plus a small commission depending on the catergory booked.

[grod19]

If you are that worried about it you could always cut the TA a check as a thank you. If you saved 300 a person and had 12 people that is 3600 in cruise fare they lost out on. So ask for $25 a person from your group and you can give her $300. Probably better then she would have gotten in commission.

 

However your TA should be happy that you are introducing 12 people to his/her service.

 

I don't use TA's often but they should be used to price drops. His/her attitude is losing her the business of your future cruises......

[hototo]

The only travel these days that have on going price drops are cruises. Unless your TA does a massive volume of cruises they should be checking on prices regularly - so easy to do on line or through their travel agent sites.

 

Calling you and telling you there was a price drop or a great upgrade offer is intelligent business.

[blindrid]

I have become become very an annoyance and I really don't want to do that. The reason I inquired as to how TAs are paid is to try to understand our TA's motivation and make the decision as to if the problem is me becoming obsesive compulsive here and if so try to calm it down. I really hate being a problem for anyone. I saved each of us $300 a couple a couple weeks ago and I think it drove me to compulsion a bit but it is hard to get myself to stop checking and asking for more. I'll try to get it under control and try to be more understanding of my TA on this. Thanks everyone.

 

I did not mean to insult you. If I did, I apologize. I know how it is and I get a bit on the stubborn side myself...... Good luck and happy cruise.

 

Randy

[relaxandenjoy]

I wouldn't care how "difficult" a client you think you may be. The reason people choose to use TAs instead of booking direct is because they expect a higher level of service and expertise. It takes a TA about 2 minutes to call the cruiseline and request a price drop. The TA industry is a "customer service" industry. If you're in that industry, serving the customer IS your job! The customer is not an inconvience, they are the whole reason your job exists.

[blindrid]

I wouldn't care how "difficult" a client you think you may be. The reason people choose to use TAs instead of booking direct is because they expect a higher level of service and expertise. It takes a TA about 2 minutes to call the cruiseline and request a price drop. The TA industry is a "customer service" industry. If you're in that industry, serving the customer IS your job! The customer is not an inconvience, they are the whole reason your job exists.

 

I respectfully disagree. That opinion is a little pie in the sky. With the advent of online TA's dealing with volume, it is no longer a service industry. You go online, TA may call you and take your order, for reduced commissions - how can one expect service. Quote it, book it, forget about it.

[Kenito]

I was told by my TA that for GROUPS it works like this:

 

(RE a Carnival Cruise anyway...)

 

The TA gets $50 per cabin, in increments of 8 cabins. So, for the first 8 cabins the TA made $400. If they met the next break of another 8 cabins, they got another $400. But if they sold 12 cabins, they got nothing over the first $400.

 

Based on everything else the TA has told me I have absolutely no reason to believe a word of it.

 

Anyone out there who can illuminate me on this... because I have other questions about what we have been told! :confused:

[MaiTaiMary]

I was told by my TA that for GROUPS it works like this:

 

(RE a Carnival Cruise anyway...)

 

The TA gets $50 per cabin, in increments of 8 cabins. So, for the first 8 cabins the TA made $400. If they met the next break of another 8 cabins, they got another $400. But if they sold 12 cabins, they got nothing over the first $400.

 

Based on everything else the TA has told me I have absolutely no reason to believe a word of it.

 

Anyone out there who can illuminate me on this... because I have other questions about what we have been told! :confused:

 

It's pretty much up to the owner/manager of the agency how the commision/salary/hourly rate is handled. All agencies are different.

 

Agencies also receive differnet commissions from the same cruise line. Agency A might get 10% from Carnival, while Agency B might get 15% from Carnival. A lot of it has to do with the number of bookings they do per year. (at least this is how it worked a while back.)

[relaxandenjoy]

I respectfully disagree. That opinion is a little pie in the sky. With the advent of online TA's dealing with volume, it is no longer a service industry. You go online, TA may call you and take your order, for reduced commissions - how can one expect service. Quote it, book it, forget about it.

 

Of course you're welcome to disagree. But then where is the incentive to use a TA? If they're not doing anything other than making the reservation, I can do that myself. It's pretty painless. We use a TA for our groups who is more than happy to make changes whenever asked, gets us all seated together in the MDR, will come and do informational seminars if asked etc. If he didn't accomidate requests, why wouldn't we just book direct?