Time limit for transferring cruise to TA

[Hypo]

I just did a RCCL transfer to our regular TA, and they have already reduced the amount of OBC by 1 and a 1/2 % from the amount that they granted us for past cruises.

[Richiebaseball]

I just did a RCCL transfer to our regular TA, and they have already reduced the amount of OBC by 1 and a 1/2 % from the amount that they granted us for past cruises.

 

There are many reasons why they may have changed the OBC. Perhaps they decided they need to net more per reservation to sustain their business model. Perhaps the non-commissionable is higher than they were previously. The non-commissionable fare for Oasis and Allure sailings recently increased 10% for example. A 1 and 1/2 % decrease in the OBC certainly wouldn't make up for the difference between the lowest commission and what is likely the highest.

[Hypo]

There are many reasons why they may have changed the OBC. Perhaps they decided they need to net more per reservation to sustain their business model. Perhaps the non-commissionable is higher than they were previously. The non-commissionable fare for Oasis and Allure sailings recently increased 10% for example. A 1 and 1/2 % decrease in the OBC certainly wouldn't make up for the difference between the lowest commission and what is likely the highest.

 

 

I agree with your synopsis, just stating what I found had occurred when I transferred my reservation this morning.

[Richiebaseball]

I agree with your synopsis, just stating what I found had occurred when I transferred my reservation this morning.

 

Thanks for the info. It does bear watching and time will tell exactly what shakes out. When did you originally make the reservation you just transfered and when did you transfer it?

[sweettweety]

There is no grandfathering. As of October 6, 2010, a booking may not be transferred to a TA after 60 days of the first creation of the booking or after payment in full.

 

There are checks in place to tell of a client cancels and then rebooks.

 

 

I just phoned Celebrity and the agent put a note in my booking that I am grandfathered in for the cruise that I had booked in May for my Alaska cruise next year. So, yes, for bookings made more than 60 days ago, it will be grandfathered if you phone Celebrity or RCCL.

[CoachT]

I just phoned Celebrity and the agent put a note in my booking that I am grandfathered in for the cruise that I had booked in May for my Alaska cruise next year. So, yes, for bookings made more than 60 days ago, it will be grandfathered if you phone Celebrity or RCCL.

 

Just wait until you try to transfer it and see what happens. The new decision was made at a level much higher than the pay grade of Andes agent.

[biker1972]

TA's are in business. RCL has made it impossible for TA's to openly offer RCL cruises at a price lower than the RCL list, with the one exception being group pricing. TA's will continue to find ways to attract new business. If they don't, and there is no word of mouth about all of the wonderful services that they offer, many TA's will fall by the wayside. The cruise lines depend on the TA's to direct new cruisers to the appropriate brands for the cruiser's lifestyle. I would never have booked that first X cruise without the input of a TA who listened, asked good questions, and then advised. If RCL starts to mess too much with the system that is in place, the TA's will direct their clients elsewhere, to RCL's detriment.

[vacationagent]

I haven't heard anything about the lowered commission so I'll have to wait to see if that one actually transpires. Unlike the new 60 day policy that simply closes a loophole and really doesn't change the agency relationship, a lowered commission is indeed a sign that the cruise line is openly attempting to move business toward a direct model and is an anti-agency policy.

I think you misunderstand the policy, Richiebaseball. It is not so much anti-agency as it is anti-rebating of commission. The OBC's that you shop around for come out of agency commission. If an agency is using override commission to pay for an onboard credit and the commission drops to the standard commission with a transferred booking, then the agency could be handling the booking at net or close to net. I think it's a good policy and would like to see all cruise lines adopt it.

[Richiebaseball]

I think you misunderstand the policy, Richiebaseball. It is not so much anti-agency as it is anti-rebating of commission. The OBC's that you shop around for come out of agency commission. If an agency is using override commission to pay for an onboard credit and the commission drops to the standard commission with a transferred booking, then the agency could be handling the booking at net or close to net. I think it's a good policy and would like to see all cruise lines adopt it.

 

I'm not misunderstanding and I don't shop for OBC. As an agency owner, I see it as anti-agency. The policy of limiting a transfer to a certain number of days from creation is fine and makes perfect business sense. Actually I think 30 days would have been perfect. But I have a handful of clients that will see a particular cabin or a particular cruise while browsing online, perhaps in the middle of the night, and book it directly with the cruise line knowing they can send me an email or call the next day and transfer it. That's the original purpose of the ability to transfer. Don't put any obstacle in the way of the consumer to book but make sure our travel agent partners can continue to keep their clients. So what happens if this new policy is indeed implemented? I get penalized by the loss of commission and the client may or may not lose some OBC. The only true winner in that scenario is the cruise line. For them, they still get the booking but have to pay less commission.

[vacationagent]

I'm not misunderstanding and I don't shop for OBC. As an agency owner, I see it as anti-agency. The policy of limiting a transfer to a certain number of days from creation is fine and makes perfect business sense. Actually I think 30 days would have been perfect. But I have a handful of clients that will see a particular cabin or a particular cruise while browsing online, perhaps in the middle of the night, and book it directly with the cruise line knowing they can send me an email or call the next day and transfer it. That's the original purpose of the ability to transfer. Don't put any obstacle in the way of the consumer to book but make sure our travel agent partners can continue to keep their clients. So what happens if this new policy is indeed implemented? I get penalized by the loss of commission and the client may or may not lose some OBC. The only true winner in that scenario is the cruise line. For them, they still get the booking but have to pay less commission.

 

You are only penalized if the client takes more than 60 days to transfer it to your agency. Most people who do this, do it in order to shop for onboard credit and the purpose of this new restriction is to stop (or slow) the rebating of commission. I hope it puts the rebating agencies out of business.

[Richiebaseball]

You are only penalized if the client takes more than 60 days to transfer it to your agency. Most people who do this, do it in order to shop for onboard credit and the purpose of this new restriction is to stop (or slow) the rebating of commission. I hope it puts the rebating agencies out of business.

 

We were not discussing the new 60 day policy but rather if they were to take the policy further and only pay the lowest tier commission on any transfer.

 

And this policy will do nothing to stop agencies from "rebating". I'm sure there are others like you that hope any competition goes out of business. Apparently you think that it's the job of the suppliers to help keep you in business. Or perhaps the government should step in and create some regulations so you can stay in business.

 

There is enough business to go around and many different business models but not all of them can be successful. Perhaps if you're not finding success, instead of wishing for less competition you should go into another business.

[jagoffee]

You are only penalized if the client takes more than 60 days to transfer it to your agency. Most people who do this, do it in order to shop for onboard credit and the purpose of this new restriction is to stop (or slow) the rebating of commission. I hope it puts the rebating agencies out of business.

 

Why do you think that 60 days is not enough time to shop for OBC or to make a final decision? I fail to see why this new policy will drive anyone out of business. More bookings will now be transferred to TAs earlier and require less direct support from Celebrity. Sounds like a win-win. For those that wish to control their booking until the final payment date are now going to need to give up any TA OBC if they decide to keep the booking direct. As a result I believe more people will transfer to a TA earlier.

 

If in fact more people book direct and stay direct, it will certainly be a loss for TAs. I doubt that is the intent of the policy change. Celebrity should be able to continue to grow their business without the need to add more Customer Service people.

[webecruzn2]

I just phoned Celebrity and the agent put a note in my booking that I am grandfathered in for the cruise that I had booked in May for my Alaska cruise next year. So, yes, for bookings made more than 60 days ago, it will be grandfathered if you phone Celebrity or RCCL.

I spoke with the resolutions department at RCL today. Any booking with a creation date prior to10/18/10 is grandfathered. That is contrary to the advice I got from 2 independent travel agents and a csr at RCL. It is troubling how unreliable the service can be in this industry.

[Hypo]

Thanks for the info. It does bear watching and time will tell exactly what shakes out. When did you originally make the reservation you just transfered and when did you transfer it?

 

I booked it 55 days ago and transferred it last Sunday (the 17th)

[Richiebaseball]

I booked it 55 days ago and transferred it last Sunday (the 17th)

 

Thanks. I guess we'll just have to wait and see what exactly the future holds as far as what is grandfathered, what might be grandfathered, and what isn't grandfathered. I agree this likely has little bearing on the current relationship between the cruise line and the travel agency. It will just force consumers to choose between direct or agent early in the process. While there are some that will stay direct to retain "control", I'm betting that the large majority will continue to use an agent.