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More than half of RCCL's cruises are sold outside the U.S.


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From Travel Weekly

 

More than half of RCCL's cruises are sold outside the U.S.

 

On Dec. 31, "When the clock turns at the end of the year," said Richard Fain, the company's chairman, "the majority of [RCCL] cruises will have been sold outside of the U.S. " More»

 

http://www.travelweekly.com/Cruise-Travel/More-than-half-of-RCCL-s-cruises-are-sold-outside-the-U-S-/

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From Travel Weekly

 

More than half of RCCL's cruises are sold outside the U.S.

 

On Dec. 31, "When the clock turns at the end of the year," said Richard Fain, the company's chairman, "the majority of [RCCL] cruises will have been sold outside of the U.S. " More»

 

http://www.travelweekly.com/Cruise-Travel/More-than-half-of-RCCL-s-cruises-are-sold-outside-the-U-S-/

 

Royal Caribbean International

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Royal Caribbean International

 

The article mentions RCCL, and then later in the article mentions the other lines. I think that this is strictly Royal Caribbean on this one.

 

Given the fact that there is a huge number of ships in Europe over the summer, the numbers don't surprise me.

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The article mentions RCCL, and then later in the article mentions the other lines. I think that this is strictly Royal Caribbean on this one.

 

Given the fact that there is a huge number of ships in Europe over the summer, the numbers don't surprise me.

 

As you know, RCCL is the holding company while RCI runs, well, Royal Caribbean branded ships.

 

On the Explorer holiday cruises out of Bayonne in 2008 thru 2010, more then half the passengers were from outside the US and Canada. And us folks from the continental 48 regard Canada as the 51st state, no harm intended in that comment.:)

 

Many people from Europe like to cruise RCI to get a special American flavor on a cruise ship.

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The comments I found most interesting were

 

Fains response in regards to TA commissions:

 

Last February, Complete Cruise Solution — the U.K. trade arm of Carnival Corp. brands P&O Cruises, Princess Cruises and Cunard — reduced British travel agent commissions to 5% from a base of 12-15% in response to widespread rebating. Fain was asked if he would consider doing the same.

 

"We don't talk about those things publicly, but there is a legitimate concern that the distrubution system will end up in self-destructive rebating and discounting. It has been our decision so far [not to lower commissions], but are we reevaluating? We are always reevaluating"

 

Reevvaluating...oh boy:rolleyes:.... get ready :eek:

 

 

Dingles comments:

 

"The job we have to do is get a better understanding of the booking model, hold our nerve on pricing and believe in all the good things Richard just talked about. There is fundamental growth in cruising,"

 

I see that one as holding out on pricing and waiting to start discounting much closer to sail date.

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The comments I found most interesting were

 

Fains response in regards to TA commissions:

 

Last February, Complete Cruise Solution — the U.K. trade arm of Carnival Corp. brands P&O Cruises, Princess Cruises and Cunard — reduced British travel agent commissions to 5% from a base of 12-15% in response to widespread rebating. Fain was asked if he would consider doing the same.

 

"We don't talk about those things publicly, but there is a legitimate concern that the distrubution system will end up in self-destructive rebating and discounting. It has been our decision so far [not to lower commissions], but are we reevaluating? We are always reevaluating"

 

Reevvaluating...oh boy:rolleyes:.... get ready :eek:

 

 

Dingles comments:

 

"The job we have to do is get a better understanding of the booking model, hold our nerve on pricing and believe in all the good things Richard just talked about. There is fundamental growth in cruising,"

 

I see that one as holding out on pricing and waiting to start discounting much closer to sail date.

 

Since we get a pretty good percent of our cruise fare rebated back to us from our TA, this would not be something I would want to see. If our rebate shrank a lot I would probably book through the cruise line. The rebate we receive is the only reason I use a TA.

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Since we get a pretty good percent of our cruise fare rebated back to us from our TA, this would not be something I would want to see. If our rebate shrank a lot I would probably book through the cruise line. The rebate we receive is the only reason I use a TA.

 

 

And I am sure that is exactly what they are considering when they say they are "reevaluating"

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And I am sure that is exactly what they are considering when they say they are "reevaluating"

 

I have always thought that Royal wanted people to use a TA. Why do they care if a TA rebates something back to the client?

 

In many cases (especially for a first time cruiser) the TA can steer a client toward a particular cruise line. If they cut the TA's commission won't some TA's steer clients toward other cruise lines that may pay a higher commission and isn't this already often done?

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That is why those of us outside the U.S should be listened too more. We are not the poor relative that has to be controlled by the needs of the travelling American.

 

I have always thought that Royal wanted people to use a TA. Why do they care if a TA rebates something back to the client?

 

In many cases (especially for a first time cruiser) the TA can steer a client toward a particular cruise line. If they cut the TA's commission won't some TA's steer clients toward other cruise lines that may pay a higher commission and isn't this already often done?

 

TA's job is to match their client with the best vacation to fit what they desire. Not to satisfy their commission.

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I have always thought that Royal wanted people to use a TA. Why do they care if a TA rebates something back to the client?

 

Don't always believe everything you are told....The CL's would love people to book with them instead...they get to keep that commission that would otherwise get paid out to a TA and many times partially rebated back to the guest.... as the guest pays the same price whether they go through a TA or not. As a matter of fact Carnival was directly contacting guests who booked with TA's to try to get them to book direct on future cruises....TA's were up in arms about it.

In many cases (especially for a first time cruiser) the TA can steer a client toward a particular cruise line. If they cut the TA's commission won't some TA's steer clients toward other cruise lines that may pay a higher commission and isn't this already often done?

 

Yes and no......Not if there is a decision between the CL's to all go in this direction....and I am sure as soon as one does it wouldn't take long for the others to follow....just like when they all decided to add/drop fuel surcharges.....or stop honoring price drops after final payment date. I am sure these are all things they are "evaluating"

 

 

The fact that the CEO from Carnival was backing up Ricard fain (CEO of RCCL) shows that they do have some common interests in working together.

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Since we get a pretty good percent of our cruise fare rebated back to us from our TA, this would not be something I would want to see. If our rebate shrank a lot I would probably book through the cruise line. The rebate we receive is the only reason I use a TA.

 

You may be doing that shortly (not using a TA). Rebating from TA's is not allowed.

 

End of story!

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On the Explorer holiday cruises out of Bayonne in 2008 thru 2010, more then half the passengers were from outside the US and Canada. And us folks from the continental 48 regard Canada as the 51st state, no harm intended in that comment.:)

 

You might consider us that, but you'd be hard pressed to find Canadians who agree, I am sure.

 

You guys may love your country, but some of us are just as happy with our own and don't want to be part of yours!

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You may be doing that shortly (not using a TA). Rebating from TA's is not allowed.

 

End of story!

 

Ummm...well I have received a percentage back from every cabin booked in my party for some time now. Probably about $6K within the past few years. We often have 4-6 cabins in our party. Don't see that ending soon UNLESS RCI changes it's policy. I would say end of story, but it seems that RCI is continually re-writing the story.

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You might consider us that, but you'd be hard pressed to find Canadians who agree, I am sure.

 

You guys may love your country, but some of us are just as happy with our own and don't want to be part of yours!

 

Don't worry I have never heard Canada being referenced as the 51st state. Never. Canada is Canada and the U.S. is the U.S.

 

What I have always heard referenced as the 51st state is Puerto Rico, which makes sense.

 

So don't worry, the U.S. has no designs on Canada, if we had, well then you know our track record.

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You might consider us that, but you'd be hard pressed to find Canadians who agree, I am sure.

 

You guys may love your country, but some of us are just as happy with our own and don't want to be part of yours!

 

Don't worry I have never heard Canada being referenced as the 51st state. Never. Canada is Canada and the U.S. is the U.S.

 

What I have always heard referenced as the 51st state is Puerto Rico, which makes sense.

 

So don't worry, the U.S. has no designs on Canada, if we had, well then you know our track record.

 

Now folks, you know what I meant.

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Ummm...well I have received a percentage back from every cabin booked in my party for some time now. Probably about $6K within the past few years. We often have 4-6 cabins in our party. Don't see that ending soon UNLESS RCI changes it's policy. I would say end of story, but it seems that RCI is continually re-writing the story.

 

Even though your TA might be doing this- it is against policy. If they were to get caught they could lose their relationship with the cruise line. Unfortunately this hurts the industry as a whole.

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And I am sure that is exactly what they are considering when they say they are "reevaluating"

 

My wholesale club TA used to heavily discount Princess. That is over. All I get now is the $200 gift card less their $25 fee. With RCI, I don't even get the gift card. Cruise lines are squeezing TAs.

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You may be doing that shortly (not using a TA). Rebating from TA's is not allowed.

 

End of story!

 

Actually it's discounting of the cruise fare by TA's that is not allowed....TA's rebating in the form of OBC, free specialty dining, spa treatments...ect is allowed and happens every day.

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Here in Spain Royal Caribbean cruises are now the same price or even cheaper than buying the cruise in dollars.

 

Royal Caribbean pays the large Spanish agencies an 18%-20% commission (plus other overrides and benefits of which I have no specific knowledge).

 

Royal Caribbean itself sponsors a discount to the customer. Any Royal Caribbean cruise booked from a large Spanish travel agency gets a 5% - 10% discount plus other perks depending on the season, given promotion, etc.

 

I would be very careful about the Cruise Lines' attitudes about not rebating, discounting, etc. There are strong antitrust and competition issues involved -- every independent business has the right to charge its customers what it wants to charge -- without the two companies that control the world's entire cruise business (Carnival and RCCL) telling them what they must charge.

 

Kind regards,

 

Gunther and Uta

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