Princess to Introduce Price control

[1 HappyCruiser]

As I understand it, as of Jan 1, 2012, Princess will be limiting the rates at which TA's can advertize their product. It appears that they want to be only ones who can discount the advertized rates. I'm not sure about any rebates from TA's in the form of cabin credit or kickback like a Specialty dinner for booking with them. Somehow I'm certain that they can control those also. :mad:

 

"This policy was created due to consumer feedback that price differences were confusing."

How nice of Princess to help me decide who has the better prices. How many of us were that confused about which was the cheaper of the two?

I guess we can all look to the new & higher price cruises in the new year. :mad:

[serene56]

Princess is one of the few lines left that allow discounting using a travel agent. Most of the other cruise lines cut the TA out. SOme now offer insurance or onboard credit or a percentage off cruise excursions.

 

FOr our upcoming Ruby we got a 200 discount and a 75. onboard credit.

 

Yeah- that will go away now.

[betterthanworking]

This is happening already. When booking our March 2101 cruises my TA said that Princess is already starting to limit the discounts that TA's can offer.

[Woobstr112G]

When I booked next month's cruise on the Ruby, in March of 2010, I used a T/A for the first time and saved major $$$$$ over the princess website price. When I booked my 2013 cruise the T/A told me that Princess was starting to limit T/A discounting. Looks like it is coming to fruition.....:(:(:( On a similar note; when princess first release pricing for the October 2012 Med-T/A the price for a mini was quite cheap. I just looked at the price a couple of days ago and it is several thousand more.....

 

Bob

[Gail & Marty sailing away]

It was going to happen....

[Princess Patches]

As I understand it, as of Jan 1, 2012, Princess will be limiting the rates at which TA's can advertize their product. It appears that they want to be only ones who can discount the advertized rates. I'm not sure about any rebates from TA's in the form of cabin credit or kickback like a Specialty dinner for booking with them. Somehow I'm certain that they can control those also. :mad:

 

"This policy was created due to consumer feedback that price differences were confusing."

 

How nice of Princess to help me decide who has the better prices. How many of us were that confused about which was the cheaper of the two?

I guess we can all look to the new & higher price cruises in the new year. :mad:

 

Where are you quoting from? I did not see this under the press releases on the Princess website.

 

Please Princess, let us be confused!!

[curiouscat]

Yeah.... about time...:D

 

But those "on line" agencies will still find a way around it:rolleyes:

 

 

CC

[Gettingwarmer]

This has already happened in trhe UK and discounts by TAs are no longer allowed for 2012-2013 cruises. They cited the same reason which is ridiculous.

"This policy was created due to consumer feedback that price differences were confusing."

They said that people were confused by all the different prices around. It applies to P & O as well.

[daveoc]

Princess are following the system that P&O here in the UK are already using, the intention being that when you book you pay the same amount with the cruise company or the travel agent.

 

Of course both are part of Carnival, so if it works expect it to be rolled out to all brands under the Carnival banner in due course.

[PescadoAmarillo]

As a frequent Princess cruiser I'm not thrilled. But as a stockholder I say it's about time! I would really hate Princess to continue to compete on price. Surely the Princess experience should command more than simply the lowest cruise price available. Along with all the combinable OBCs, Princess really had become the best cruise value around.

 

With all these recent changes it looks like Princess has decided it's time to reverse the trend of the last few years. Cruise lines change; that's why I would never limit myself to just one. Better, I think, to be open to shopping around.

[Toto2Kansas]

I confirmed this 'limited or no discounting', and yep, it's happening as of January 1, 2012.

I feel there have been just far too many changes (both onboard and when booking now) taking place in too short of a time to absorb for me. I honestly expect the next to be a cut in past passenger benefits (guessing). I also feel they are drawing a line in the sand, and they are going to loose a lot of those long time Princess passengers who cruise many times each year over this one. But only time will tell I guess.

I have added it to my little book titled "What is Princess thinking with this idea"?

[Loonbeam]

I know one concern has been agencies who advertise extremely low rates but then provide lousy service leaving Princess to clean up the mess in terms of customer relationship.

 

It's not really a shareholder issue because the price to the cruiseline doesn't change, the discounts come from the TA's commission.

 

That said, theres a difference between advertising low prices and being allowed to offer stuff back. For example, take a $2000 cruise. Right now a TA could offer it at $1800. With the new rules it sounds like they could say $2000 with $200 on board credit. Same net price, but a totally different presentation.

[betterthanworking]

Can someone post a link to the Press Release??

[Toto2Kansas]

Can someone post a link to the Press Release??

 

There is no press release that I know of. They don't normally release a press release for things like this. They alert TA's to the changes coming when it concerns their pricing structure!

[Pam in CA]

Interesting. This is similar to RCI policies. On my recent Celebrity cruise, I paid the cruiseline rate but my auto-tip was pre-paid by the TA plus they gave me a $250 OBC. Added up, it was about 12% of my cruise fare.

 

I wonder if my TA will be able to honor pricing already quoted and booked for 2012 and 2013?

[wardroom]

O well so if the ta cannot discount prices they will have to come up with something else. not sure what but we will have to wait and see

[old sole]

I can understand the consternation of those of you who have a long history with Princess and with a particuar TA, but for the rest of us with only a few Princess bookings or for Princess first-timers this is a more straightforward way to do business. I have sailed with Princess, Carnival, Disney, NCL, and I am booked with RCCL. Of those, only Princess allows discounting by TA's. I had the most pricing ambivalence over my Princess bookings, because I just couldn't shake the feeling that there was a TA out there somewhere with a deeper discount than the one I (sometimes) use, but I had no way to know who that was. Incidently, Princess bookings are also the only ones where I make the intial booking with a TA. I generally like to control the booking myself as long as possible.

 

The next shoe to drop might be disallowing transfer of a booking made directly with Princess to a TA. Carnival now only allows that within 30 days of the booking, with RCCL its 90 days.

[Gettingwarmer]

I know one concern has been agencies who advertise extremely low rates but then provide lousy service leaving Princess to clean up the mess in terms of customer relationship.

 

It's not really a shareholder issue because the price to the cruiseline doesn't change, the discounts come from the TA's commission.

 

That said, theres a difference between advertising low prices and being allowed to offer stuff back. For example, take a $2000 cruise. Right now a TA could offer it at $1800. With the new rules it sounds like they could say $2000 with $200 on board credit. Same net price, but a totally different presentation.

 

In the UK. Before the discount to the passenger came from the extra commission Princess gave the TA. They are limiting the commission they are giving the TA so any discount or OBC the TA gives you is now taking more from their profits. Will they do this? They could also lose Princess business by flouting their rules.

[PescadoAmarillo]

It's not really a shareholder issue because the price to the cruiseline doesn't change, the discounts come from the TA's commission.

 

If TAs are truly not allowed to discount (or give OBC as a way to discount), more people will be compelled to book directly with Princess. For those many cruisers who simply shop on price and don't need the service that TAs can provide, there will be no advantage to doing otherwise, and Princess will save the commissions they paid on all of those sales. Considering most of those commissions were 18% of commissionable cruise fares, that's a considerable savings.

[G8RH8R]

This is happening already. When booking our March 2101 cruises my TA said that Princess is already starting to limit the discounts that TA's can offer.

 

Wow! I've heard of booking well in advance, but never that far!!!:D

[Gettingwarmer]

Commission for the TAs in the Uk appears to have been reduced by 10%

[Loonbeam]

A very valid point, although offset a bit by the need for more customer service agents and the related customer handling expenses. But you are right, probably a net gain.

 

On the flip side, that will force TAs to compete on service, more than price, which from my point of view is a very good thing.

 

If TAs are truly not allowed to discount (or give OBC as a way to discount), more people will be compelled to book directly with Princess. For those many cruisers who simply shop on price and don't need the service that TAs can provide, there will be no advantage to doing otherwise, and Princess will save the commissions they paid on all of those sales. Considering most of those commissions were 18% of commissionable cruise fares, that's a considerable savings.

[newmexicoNita]

As I understand it, as of Jan 1, 2012, Princess will be limiting the rates at which TA's can advertize their product. It appears that they want to be only ones who can discount the advertized rates. I'm not sure about any rebates from TA's in the form of cabin credit or kickback like a Specialty dinner for booking with them. Somehow I'm certain that they can control those also. :mad:

 

"This policy was created due to consumer feedback that price differences were confusing."

How nice of Princess to help me decide who has the better prices. How many of us were that confused about which was the cheaper of the two?

I guess we can all look to the new & higher price cruises in the new year. :mad:

 

i think we could all see this coming. RCI was the first to do something similar (about 4 or 5 years ago) NCL adopted the policy about a year or so ago. I am betting all the lines will soon follow, just like open dining, more casual dress, auto tipping, etc.

 

Nita

[WVBill]

..... Incidently, Princess bookings are also the only ones where I make the intial booking with a TA. I generally like to control the booking myself as long as possible.

 

The next shoe to drop might be disallowing transfer of a booking made directly with Princess to a TA. Carnival now only allows that within 30 days of the booking, with RCCL its 90 days.

 

Help me understand.

 

I've only booked one cruise and that was directly with Princess - I understand that if I find a TA who can discount my fare below what I have with Princess, it would be to my advantage to transfer the booking.

 

What would be the advantage of transferring a Carnival booking to a TA if Carnival doesn't allow TAs to discount fares?

[newmexicoNita]

Interesting. This is similar to RCI policies. On my recent Celebrity cruise, I paid the cruiseline rate but my auto-tip was pre-paid by the TA plus they gave me a $250 OBC. Added up, it was about 12% of my cruise fare.

 

I wonder if my TA will be able to honor pricing already quoted and booked for 2012 and 2013?

 

Probably if already booked, otherwise, it might be unlikely, especially the 2013. Remember until something is reserved prices are always subject to change.

 

Nita