Carnival Bans Cash-Equivalent Promotions

[LauraS]

Check out the latest Carnival Cruise Line news from Cruise Critic:

 

Carnival Bans Cash-Equivalent Promotions

[LHP]

ok...I am confused.

 

I thought this is what Carnival did 2 years ago when they stopped agencies from kicking back part of their commission in the form of OBC etc????

[Sargent_Schultz]

A number of travel agents long ago stopped pushing Carnival and only sell when customers request. Are they really going to care if Carnival bans them?

 

I don't see much of a difference going forward.

[golfadj]

On several recent cruises dealt with TA that rebated part of their commission as obc.

 

It appears they will not be allowed to do this in the future but what is to stop them from sending me their check instead?

[Dave85]

I'm having a difficult time figuring out why the heck Carnival cares about this... as a previous poster noted, Carnival already banned several years ago advertising cruise fares that undersell Carnival's rate (by re-directing a portion of the commission towards the fare --> showing a reduced rate). I understand why Carnival did that. This, however, I'm having a difficult time with... any ideas on what their real motivation is? I'm quite skeptical about that nonsense about confusing consumers... :rolleyes:

[Dave85]

http://boards.cruisecritic.com/showthread.php?t=1665707

 

Discussing this topic already.

[KLMMD11]

That's how I see it, agencies can find another way to rebate us, cause if they don't we won't be sailing Carnival.

 

They said it will help us the consumer, WRONG

 

They said they want us to pick our booking agency based

their expertise and service rather than the price or promo offered,

umm seriously....how hard is it to type in a few names and credit card number, their services are minimal, did they forget we the comsumer even print out our own tickets, travel agencies do nothing but offer perks!

 

I don't care about expertise or if my agent has a masters degrees in anything, SHOW ME THE PERKS!!!!

 

I THINK A BAD CRUISE LINE JUST GOT WORSE!

 

Jon

[allanv]

I'm having a difficult time figuring out why the heck Carnival cares about this... as a previous poster noted, Carnival already banned several years ago advertising cruise fares that undersell Carnival's rate (by re-directing a portion of the commission towards the fare --> showing a reduced rate). I understand why Carnival did that. This, however, I'm having a difficult time with... any ideas on what their real motivation is? I'm quite skeptical about that nonsense about confusing consumers... :rolleyes:

Strange decision, I agree. Maybe they want to level the competition by doing this?

[bbbearden]

Looks to me as if they are trying to cut out the TA's in favor of thier internal vacation planners.

[cruisemom6155]

I wonder if they would rather cruisers booked directly with them rather than agents? Kinda like Southwest Airlines. You only get the best flight rates with SW if you book online with them.

[mizLORInj]

So first it was cutbacks in food, service, etc. over the past years, then their not-so-great new (not improved) VIFP program, but this is the change I dislike most. This is NOT for the customer.

If I can't get my nice OBC from my TA, like I have been getting for YEARS (for ALL cruiselines!), Carnival may be considered for future sailings but they definitely won't be at the top of my list.

Are they failing to realize that WE, the Consumers, HAVE CHOICES? If NCL has a similar itin at a similar price and I can get OBC, why would I sail Carnival?!?

Carnival: you are making poor choice after poor choice.

[Maraprince]

This new change does not seem to be the way to get more passengers to book with Carnival.

 

I thought the whole idea was to get passenger to book at the same pricing offered by Carnival by not allowing TA's to sell at a lower price. So how does taking away an OBC from a TA impact Carnival's business? You still get to use it on board towards the purchase of something. You do not get the cash equivalent to take home with you. The OBC does not reduce your overall cruise fare. It doesn't hurt Carnival in any way that I can determine. I am very confused as to why Carnival feels that this change was necessary.

 

It will only drive passengers to other lines that allow it.

 

 

MARAPRINCE

[btrbill]

So will this mean the Agency associated with this site that does the group crusies for a $25 reduced deposit will no longer be able to do so?

[Jeffy294]

ok...I am confused.

 

I thought this is what Carnival did 2 years ago when they stopped agencies from kicking back part of their commission in the form of OBC etc????

 

That is pretty much what I was thinking. I must have missed this one all together.

[cruisercrazy69]

So will this mean the Agency associated with this site that does the group crusies for a $25 reduced deposit will no longer be able to do so?

yes they have to be booked by July 31, 2012 per their email i just received from them

[waldocruiser1]

So will this mean the Agency associated with this site that does the group crusies for a $25 reduced deposit will no longer be able to do so?

 

i was wondering the same thing, they also give obc at times,

 

will be interesting how it works out.

[golfadj]

ok...I am confused.

 

I thought this is what Carnival did 2 years ago when they stopped agencies from kicking back part of their commission in the form of OBC etc????

 

When my first pvp left Crnival went to a TA who rebated part of her commission in the form of obc. Used her several times for cruises in the past year.

[Eastcstrob]

I think this is where LOYALTY to your travel agent will benefit you most....

[Dave85]

I think my confusion is that every decision Carnival makes is clearly motivated by the almighty dollar... and I still (hours later) can't figure out how this decision makes Carnival any more money. If anything, I could see it costing Carnival money, as they're giving up revenue they could otherwise be earning from gifts / shore excursions purchased through Carnival by TAs as incentives.

 

Maybe I'm just dense, but I still don't get it.

[yogaddict]

I think my confusion is that every decision Carnival makes is clearly motivated by the almighty dollar... and I still (hours later) can't figure out how this decision makes Carnival any more money. If anything, I could see it costing Carnival money, as they're giving up revenue they could otherwise be earning from gifts / shore excursions purchased through Carnival by TAs as incentives.

 

Maybe I'm just dense, but I still don't get it.

 

 

I don't usually chime in on these topics, but, Dave85 is right. This is motivated by the almighty dollar... and the motive is quite transparent if you ask me. When you book through a travel agent, Carnival must share a portion of the fare in commission with a travel agent.

 

If you book through Carnival, they keep more of the fare.

 

Get rid of any monetary incentive of booking through a travel agent, drive more customers to book through Carnival directly = Increase Carnival's share of the cruise fare.

 

For many passengers, if the TA can't give you a tangible cash-equivalent incentive, then there is no reason to use a TA.

 

100% dollar driven new policy.

[Dave85]

I don't usually chime in on these topics, but, Dave85 is right. This is motivated by the almighty dollar... and the motive is quite transparent if you ask me. When you book through a travel agent, Carnival must share a portion of the fare in commission with a travel agent.

 

If you book through Carnival, they keep more of the fare.

 

Get rid of any monetary incentive of booking through a travel agent, drive more customers to book through Carnival directly = Increase Carnival's share of the cruise fare.

 

For many passengers, if the TA can't give you a tangible cash-equivalent incentive, then there is no reason to use a TA.

 

100% dollar driven new policy.

 

I knew it, I was just dense. There's the missing piece... the angle where Carnival makes more money out of the new policy.

 

Thanks for setting me straight!

[golfadj]

I don't usually chime in on these topics, but, Dave85 is right. This is motivated by the almighty dollar... and the motive is quite transparent if you ask me. When you book through a travel agent, Carnival must share a portion of the fare in commission with a travel agent.

 

If you book through Carnival, they keep more of the fare.

 

Get rid of any monetary incentive of booking through a travel agent, drive more customers to book through Carnival directly = Increase Carnival's share of the cruise fare.

 

For many passengers, if the TA can't give you a tangible cash-equivalent incentive, then there is no reason to use a TA.

 

100% dollar driven new policy.

 

I do believe you nailed it but how often will TA now steer clients away from Carnival now.

[yogaddict]

I do believe you nailed it but how often will TA now steer clients away from Carnival now.

 

And you just nailed the TA's response! I guess Carnival is anticipating the TA's won't be so successful...

[Dave85]

And you just nailed the TA's response! I guess Carnival is anticipating the TA's won't be so successful...

 

Yeah, it's definitely a gamble / calculated risk on Carnival's part. They must figure they'll make more overall than they'll lose... their ships will still sail full every week.

[PLEIKU68]

First the cut back in their loyality program and now this. What the hell are they thinking, TA's will now push other line, not that it was hard to sell against Carnival. A bad cruise line just got worse. Maybe the Costa attorneys realize they have a problem on their hands .

 

Sell your Carnival stock, boycott this pig of a company !:(:(:mad::mad::eek::eek: