Travel Agent Commission

[mikjr]

I know this topic has come and gone, and I sure hate to beat a dead horse, but I'm trying to get a handle on how the "room rates" works.

 

We are doing some planning for some future cruises... we've used the same T/A for over 10 years now. But lately the rates they quote are no different than those published by the cruise line itself.

 

NOW... I understand that Carnival has sent the memo to "The Agents", advising them that they are to NO longer discount cruises... I'm assuming that is for ALL Carnival owned cruise lines.

 

So the question is... how can I get four different rate quotes for the same category room, most being cheaper. Did someone "miss the memo"??

 

All quotes included port charges and government taxes, but there was a difference of as much as $600/couple for the same room!!

 

Does that mean the agents are going against Carnival's new policy?? One of the quotes came from the travel agents associated with a very large warehouse club, and they even offered an OBC and a bottle of wine!!

 

Also, I've read that the cruise lines have cut commissions to agents from 20/30% to only 10%.

 

again, I don't mean to rehash old news, but I've searched the boards and really can't find a definitive answer.

[Toto2Kansas]

Mike, my understanding this has not taken effect on Princess yet, and has not even been announced that it will (although I am sure the day is coming). That is probably why you are getting all different price quotes from TA's. ;)

[Coral]

Carnival's memo is for Carnival only, not Princess (yet). No news on Princess yet.

 

I think many Travel Agents work on 15% commission but have to pay their parent company (if they are associated with one) a few percentage points depending on their agreement. Also remember that discounts are off of the cruise fare, not the taxes and fees.

[Pam in CA]

Carnival's memo is for Carnival only, not Princess (yet). No news on Princess yet.

 

I think many Travel Agents work on 15% commission but have to pay their parent company (if they are associated with one) a few percentage points depending on their agreement. Also remember that discounts are off of the cruise fare, not the taxes and fees.

Right. The memo went out to Carnival Cruise Lines, not from Carnival Corporation & PLC which is the holding company that owns several different cruiselines, including Carnival Cruise Lines. It's easy to confuse the two, thinking that what Carnival Cruise Lines does means Princess will have to do. Not true. The two cruiselines are separate and managed separately. Just like HAL, Cunard, Windstar, etc.

[sultan_sfo]

TA commissions are also based on their volume. Those TA that book a substantial number of cabins as "group" space get a much lower price for that group. The group space can then be sold as individual cabins. Cruise lines will not allocate substantial group space to TAs on itins that sell out at their normal prices.

 

Probably only 20% (a total random guess) look for cheap prices and are willing to go to on-line agency TAs. Most will book with standard travel agents who do not discount at all but do a lot of hand holding. So for the cruise line it is a win win situation -- get the market share of the typical cruiser who spends 2 or more hours each day on Cruise Critic boards and those who pick up their phone and just call their TA.

[Coral]

TA commissions are also based on their volume. Those TA that book a substantial number of cabins as "group" space get a much lower price for that group. The group space can then be sold as individual cabins.

 

There are some group prices that are significantly better then other group prices. For example, some of the Transatlantic group space had substancial discounts above what Princess quotes.

[Pam in CA]

There are some group prices that are significantly better then other group prices. For example, some of the Transatlantic group space had substancial discounts above what Princess quotes.

Right. I got a really good group discount to start with and at final payment, got a big reduced re-fare. Then I got upgraded last week to a mini-suite. I wound up paying only $100 more than my sister in an obstructed view cabin. Now she's asking, "Why you?" :)

[Coral]

Right. I got a really good group discount to start with and at final payment, got a big reduced re-fare. Then I got upgraded last week to a mini-suite. I wound up paying only $100 more than my sister in an obstructed view cabin. Now she's asking, "Why you?" :)

 

Have a great time!

[TracieABD]

Actually, I received a lower price and OBC from my TA... Works for me!

[DrivesLikeMario]

TA commissions are also based on their volume. Those TA that book a substantial number of cabins as "group" space get a much lower price for that group. The group space can then be sold as individual cabins. Cruise lines will not allocate substantial group space to TAs on itins that sell out at their normal prices.

 

Probably only 20% (a total random guess) look for cheap prices and are willing to go to on-line agency TAs. Most will book with standard travel agents who do not discount at all but do a lot of hand holding. So for the cruise line it is a win win situation -- get the market share of the typical cruiser who spends 2 or more hours each day on Cruise Critic boards and those who pick up their phone and just call their TA.

 

That sure would be a nice commission!! :D Too bad that is impossible with all the cruise lines!! :mad:

 

Commission rates are based on the cruise rate only and depend on the volume an agency sells, but most are between 12-15%. Out of that, a fee is taken by the parent company, then the passengers get a discount from the commission and the agent's expenses come out of what's left. :(

[Loonbeam]

Commission have dropped recently too a little, which has reduced the flexibility of the agency I deal with. But as noted, the ability to price is very dependent on the volume that a given agency does and any commitments that they are prepared to make regarding block purchases.

[paul929207]

When planning a cruise, I check a bunch of online TA's. I then call my TA and tell her the lowest price I found. She always matches it, usually with a higher category cabin.

[spongerob]

I'm not really sure that there are any definitive answers. As much as people want to help by discussing the questions and posting their experiences, there is no substitute for shopping around and paying attention to individual companies' terms and conditions.

 

The most important lesson I've learned is that if you are not willing to pay the price quoted at the time you book, don't book.

[Coral]

 

The most important lesson I've learned is that if you are not willing to pay the price quoted at the time you book, don't book.

 

I used to wait until the price goes down to what I wanted and booked a lot of flash fares. I have started booking far out. On a few cruises, the prices have been unreasonable. On one specific cruise, the price has almost fallen in half but because I booked a long time ago, I was able to get the cabin I want and have taken advantage of several price drops because of it (E731).

 

Since I use an agent who doesn't charge cancellation fees, I don't think I am risking anything and it has worked out well.

 

So I disagree with your important lesson.

[sadiecat]

I called MCL yesterday to price a Eastern Caribbean for one of the suites on EPIC. NCL price with military discount total was $6839, my current TA who we always use with military discount total was $6208. In addition when I asked NCL if there were any other perks I was told no. My TA said this included a $300 OBC and a bottle of wine in the cabin. I think we will stick with our TA.

[grandmato4]

As other's have said, the new pricing policy is for Carnival only and so far not the other brands under Carnival Corp. Even under the new policy for Carnival ships only there is room for some amenities to be given if first approved by Carnival and some agencies will be creative enough to find ways to circumvent the new policy just like agents have done with RCI's policy.

 

I think that figuring out how pricing works is diffcult beacause there are several different scenarios that effect it. Generally Princess pays agents a set 10% of the commissionable fare and then depending upon their volume and status with the cruiseline an additional percent which varies to agents so different agents have a different amount of commission they may recieve for booking the same cabin. Right now agents can still choose to pass some of their commission onto their customers in the form of lower price and/or OBC or other amenities. Sometimes agents book group space with lesser pricing and amenities (OBC/wine/ect) associated with it that agents will pass on to passengers. And of coarse then there are the special sales that the cruiseline will offer to the agents for limited times that agents can sell to their customers that aren't available directly to passengers if they book directly with the cruiseline.

[CruzinNoony]

What is the risk, if any, in booking with an on-line TA? What if they go bankrupt?:cool:

[WeBeGone]

What is the risk, if any, in booking with an on-line TA? What if they go bankrupt?:cool:

 

You just need to go with a reputable on line agency - one that has been in business for a while, one that has a phone number that gets you to a real person, one that has no hidden cancellation/change/service fees,, etc. About 1/3 of all bookings are now made on line.

[sultan_sfo]

Just make sure that all payments one makes (Deposits / Full Payments) are made to the cruise line not the agency. This is the normal practice used by nearly all TAs in USA for cruise bookings.

 

What is the risk, if any, in booking with an on-line TA? What if they go bankrupt?:cool:

[imsulin]

Who came up with the 20-30% commission rate? The highest I've ever heard of was 16% (on the cruise rate only) and that was based on the volume of bookings done the previous year. Our agency had to renew contracts with cruise lines (and land-based vacations) each year, so each year we received a "preferred vendor" list, which showed who offered the highest commissions. The highest I (as a TA) ever saw was 16%, and that was from Carnival. We did a TON of Carnival bookings because they were usually the cheapest, and our clients were within driving distance of the ports. BTW - this was a brick & mortar agency.

[CruzinNoony]

How do I make sure my deposit/final payment goes to Princess and not to the agency? I don't believe it shows up on the cruise personalizer, or does it? But, actually, if the money all goes to Princess, then even if the agency goes bankrupt it won't affect me. Correct? :eek:

[Travelcat2]

Personally, I do not feel that a TA's commision percentage is any of my business. What I pay for a cruise is what is important. Keep in mind that when you book the least expensive cruise, there tends to be less benefits available from your TA (yes -- based on their commission -- whatever it is). Some TA's do rebate a small percentage of their commission to their clients -- gifts, bottles of wine, a free excursion, etc. If your TA is unable to do anything for you, IMO, it is still better to have a TA than not have one (to assist you in the booking as well as being your advocate should anything go wrong). Certainly look into other TA's that specialize in cruising -- but make sure they can provide references for you.

[sultan_sfo]

With Credit Card payment, you can check your statement -- it should be a direct post to the cruise line. With checks, I suggest arranging with the agency that you will make out the check to the cruise line. If they do not agree request a confirmation within a week of the cruise line statement. Now if the cruise line itself goes bankrupt (like airlines do) then the whole vacation will be limbo unless you have trip insurance that covers that.

 

How do I make sure my deposit/final payment goes to Princess and not to the agency? I don't believe it shows up on the cruise personalizer, or does it? But, actually, if the money all goes to Princess, then even if the agency goes bankrupt it won't affect me. Correct? :eek:

[spongerob]

I used to wait until the price goes down to what I wanted and booked a lot of flash fares. I have started booking far out. On a few cruises, the prices have been unreasonable. On one specific cruise, the price has almost fallen in half but because I booked a long time ago, I was able to get the cabin I want and have taken advantage of several price drops because of it (E731).

 

Since I use an agent who doesn't charge cancellation fees, I don't think I am risking anything and it has worked out well.

 

So I disagree with your important lesson.

We do the same thing, usually planning our cruises 8-14 months in advance. Once or twice we have booked when rates were high and they stayed high. I'm just saying that unless you are willing to cancel if prices remain elevated, be prepared to pay the price quoted. You can't bank on price reductions all the time.

[luvmybicycle]

I booked with a travel discounter and got a very good price for a cabin. I was surprised at how high the taxes were though which I did not see until after I had booked the cruise.

 

When I check on the royal caribbean site a few days later I found that the taxes were about $50.00 cheaper for a room that was more expensive. I emailed the agent and she said that Royal Caribeean calculates taxes differently each day. How does this work?