Booking Question

[Slacktide]

How come it's cheaper to book through a travel site than directly with the cruise line? How can the travel site afford to do this?

[JanineM]

Depends on the cruise line. Some lines, like Royal Caribbean and Celebrity do not allow travel agents to discount. If you are seeing a special deal then the agency has block booked rooms and is re-selling them. Whatever discount you see if probably coming out of their commission.

[paul929207]

Often, if a TA is prohibited from offering discounts, they will offer perks like OBC or free wine.

[CaveDiving]

How come it's cheaper to book through a travel site than directly with the cruise line? How can the travel site afford to do this?

 

Hi Slacktide,

 

The direct answer to your question is really straightforward.

 

Cruise lines depend on TA's (Travel Agents) for their business. Without the cooperation of the TA's, the cruise lines would be in a heap of trouble. TA's earn a commission. If a cruise line started selling cruises below the rate that TA's charge for the same cruises, the TA's would stop doing business with that cruise line and the line would be in trouble.

 

Now let's say, (as an example only and not based on any specific cruise's data,) that for a given cruise, the TA's are getting a 15% commission. There may be a larger on-line TA that does enough business that he is willing to accept a 5% commission for that given cruise. Now that TA's price for the cruise will be nearly 10% less than other TA's and also 10% lower than the cruise line's price.

 

If the cruise line tried to match the lower price offered by that TA, it would be undercutting all of the other TA's, so it cannot do this. The cruise line must stick with the list price of the cruise to protect the smaller TA's that cannot afford to accept a lower commission.

 

Reserving large blocks of cabins on certain cruises may also permit larger TA's to get a lower price per cabin from a cruise line and subsequently pass this savings on to cruisers.

 

By the way in my experience, the cruise lines "forbidding the TA's to discount prices" is a concept that is often spoken of by some TA's that do not want to reduce their commissions, but does not hold water with the larger TA's that really want your business. Enough said.

 

I hope this helps answer your question.

 

Scott & Karen

[Slacktide]

Thanks all for clearing that up for me. Having never delt with this mess before, I can't help but feel caught up in a "shell game".:eek: Now I'm visualizing a machine at the end of the gang plank that picks you up, inverts you and shakes the last nickel out of your pockets.:rolleyes:

[STARFISH*4]

it really depends more cruiselines are not allowing the TA discount so they are actually the better deal...has worked for us sometimes...my Dec cruise coming up it was much cheaper to book thru the cruiseline and i got OBC too--i dont care about the free wine or useless coupon book--just have to shop around and decide.

[scchasgal]

Just remember that most if not all if you have any questions about your trip or see a lower price you have to go through your TA not directly with the cruiseline.

 

Sometime it is just better and easier to be in control of your own travel arrangements and cut the middle man out.

[excruisestaff]

Although we are past passengers, if not for the agency we booked with, our Dec. HAL cruise would have been much more expensive and we would not be getting shipboard credit. I think it depends on the particular agency as some might have blocked group space and/or have a better rapport with that particular line than others. My Aunt booked her first one through an agency which claimed to be a top account of the cruise line she wanted and wound up getting not only a great price but a complementary 9 category upgrade (from an inside to a balcony!)...so you never know!