Carnival Bans Cash-Equivalent Promotions

[Sargent_Schultz]

Or maybe they just want to stop people from booking with a PVP and then transferring to a TA if they can get a better deal.

 

Some complain about imagined Carnival cutbacks, but what isn't imagined is people demanding the cheapest price possible and then wondering why they only get what they paid for.

[yankee46]

After 31 cruises with CCL I am now done. First the food started downhill then the entertainment. Now the few bucks you can get is gone and so are we.

[CanWeGoYet?]

I think TAs already were prone to steering clients away from Carnival. I was briefly a member of a meet up cruise group led by a travel agent. He was so biased against carnival. Talked about a client who only wanted to cruise with carnival, in a scornful tone. When I asked if it was because he valued the platinum perks, he snapped at me that it wasn't anything to do with perks - it was a matter of being too ignorant to want to try another line.

 

Then describing the food on NCL as "spectacular." Not the added fee restaurants, either.

 

I figured then it must be a matter of more hassle or fewer perks for him if his client books Carnival.

[CanWeGoYet?]

Looks like shareholder credit or credit card points (like the Carnival card) will be the only ways to get onboard credit, aside from early saver.

 

What carnival is doing though, by limiting what perks travel agents can offer is not all that different from Celebrity. I remember the brouhaha on the Celebrity board a few years back when they stopped allowing stacking of shareholder credit with travel agent OBC. You could choose which one was higher but you could not apply both to the same cruise.

 

Now Celebrity may be less restrictive if you can at least have gratuities thrown in by the travel agent.

[mdj101]

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).

 

They can't actually do that by law. It would be classed as price fixing.

 

Carnival cannot dictate what someone can sell a cruise for, they can of course refuse to stop dealing with that party but they can't tell people what to sell something for, it's against the law.

[CoachT]

They can't actually do that by law. It would be classed as price fixing.

 

Carnival cannot dictate what someone can sell a cruise for, they can of course refuse to stop dealing with that party but they can't tell people what to sell something for, it's against the law.

Actually they can. In 2007, the Supreme Court found that a company can set and enforce a MINIMUM ADVERTIZED PRICE. It is not price fixing at all.

[halos]

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.

 

Same here. I am totally baffled. I just got the email this morning. I am praying other lines don't follow...I have enjoyed quite a lot of OBC from the TA I use. There was always MORE from other lines when booking with this TA, but when I would book CCL, I would get at least a little something.

Now with CCL doing this, the argument that they are cheaper a little less true than before.

[Ramrac]

So does this mean that if you have your current cruise that is booked and paid for and was given an OBC you won't get it if your cruise is after August 1, or that the TA's can no longer offer those incentives after that date?

[mrb1963]

So does this mean that if you have your current cruise that is booked and paid for and was given an OBC you won't get it if your cruise is after August 1, or that the TA's can no longer offer those incentives after that date?

They can't offer it after July 31st. You can still get it as long as you book by July 31st.

[Dave85]

They can't actually do that by law. It would be classed as price fixing.

 

Carnival cannot dictate what someone can sell a cruise for, they can of course refuse to stop dealing with that party but they can't tell people what to sell something for, it's against the law.

 

By whose law? I see you live in the UK. As an American lawyer, I'm not aware of any legal issue with what Carnival did. Besides, if there was, you don't think there would have been 100 lawsuits already? :rolleyes:

 

I think this is a bad policy... but just becuase it's a bad corporate policy doesn't mean it's also illegal.

[Dave85]

Now with CCL doing this, the argument that they are cheaper a little less true than before.

 

Definitely. Assuming NCL/RCI/Celebrity don't follow suit, with TA perks the price differential will narrow considerably (to the extent that one remains). I suspect it'll become harder for many (non-cheerleaders / CCL devotees) to justify selecting Carnival based on value.

[doconner]

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

 

The TA now gets to keep more money if they book them on Carnival, so I'm not entirely sure this will push them to steer clients away from Carnival. If the client asks for OBC or perks, the TA can simply throw their hands up in the air and say, "I would if I could, but I can't, so I won't."

 

I agree with the other sentiment that this is just a way to attempt to push clients into booking direct with Carnival directly.

 

I really like my travel agent, but if the only thing he can offer me is the exact same thing I'd get by booking direct, then I'll just book direct. The allowable tat that is acceptable, (Examples include tote bags, hats, beach towels, memory books, sunglasses and Carnival gifts delivered onboard (Bon Voyage items)), wouldn't be enough to encourage me to book away from CCL's website.

 

I have 2 cabins booked in October, was anticipating a combined $350 OBC from my TA. I guess I should anticipate an e-mail from my TA soon telling me he isn't allowed to give it to me.

 

Duane-O

[id est]

this is just a way to attempt to push clients into booking direct with Carnival directly.

Yeah, it is their attempt to cut TA's commissions and increase the profit, which is absolutely right!!! In my opinion it is much better to cut expences by eliminating TA's commisions than by saving on us, customers: e.g. cheaper food on board, pricey specialty restourants, various service charges, higher taxes...

Hopefully other cruise lines will follow this step in the right direction.

[CruisingAmazona]

My TA's reply: "Existing bookings are safe. This is a terrible thing Carnival is doing."

 

CCL is clearly become my least favorite cruiseline -- taking into consideration it has always been my cruiseline of choice, first than all the others! This is absolute horriblel First they drop parties, worsen their food choices, then they change the way you move up the past guest ladder (I was trying to book mostly CCL so I could eventually make it to the 25th milestone - am at 15 cruises with CCL). Now, it's all about nights, so it will take me forever!!!! Now add this to the pot! There really is little incentive to cruise with them now. If for no other reason, because all these "take-aways" leave a bad taste in customers' mouths!:(

[CruisingAmazona]

I have 2 cabins booked in October, was anticipating a combined $350 OBC from my TA. I guess I should anticipate an e-mail from my TA soon telling me he isn't allowed to give it to me.

 

Duane-O

 

Anything booked prior to August 1 will remain in effect. I am booked on the Breeze in November and had several perks, and they are all safe! This will take effect on all bookings made after August 1.

[Maraprince]

My TA OBC of $100 ended up costing me almost $500! If I hadn't had the $100 OBC in the first place, I probably would have spent less money overall.

 

OBC goes right back to Carnival. If your TA sends you a bottle of wine or any other food item, Carnival gets the revenue. They are not losing out. Same thing with the tips.

 

Does Carnival plan to reduce the cost of their sailings once the new ruling takes place? I think not. People will not part with a TA they have used successfully for years due to the elimination of perks. Many passengers come in ahead of time or stay after their sailing and book their own hotels and flights using their TA.

 

It would seem that the TA community will come up with some new, inventive ways to reward their loyal clients that fall outside the realm of Carnival long before they step foot on board.

 

 

MARAPRINCE

[Mulege]

Carnival is managed by idiots. First the VIFP snafu and now this all within a month.

[yogimax]

First the VIFP snafu and now this all within a month.

 

Don't be surprised if the shareholder credit goes next!

[CruisingSoon88]

I am a home based TA just starting up my business. I actually see this as a good thing. Larger travel companies benefit from having higher percentage commission amounts because your rate is tiered.(At least mine is) So a large agency will make more commission off a booking than I would. They could afford to give their client an onboard credit for booking with them, whereas I could not. This gives me an even shot with the big guys to earn someone's business. Now I understand that as a customer using a TA, I would not like this change. Of course, Carnival hopes that more people will just book with them. They make more money that way. Its ironic that I would never personally use a TA to book a cruise.(before I started myself) I have inquired with agents to see what benefit they could offer me over booking direct. Most just told me that all they could offer was maybe a bottle of wine and their expertise. As a consumer I would not be happy with this. As a small agency, I like it.

[CI66774]

Cruisingsoon88 - I'm unclear why you, as a small TA, would like this. This gives the little guy TA even less of a chance at getting business. Before, a family may come to you and book Carnival, hoping for an OBC, etc. But now there is no incentive to book Carnical thru you. They'll just book directly with Carnival and maintain control over their booking and not have to deal with a 3rd party. You will lose Carnival business and start steering your customers to other cruise lines - that's economics.

[yogimax]

I am a home based TA just starting up my business. I actually see this as a good thing. Larger travel companies benefit from having higher percentage commission amounts because your rate is tiered.(At least mine is) So a large agency will make more commission off a booking than I would.

 

I think you make a valid point. What will likely happen, however, is that folks will either book directly with Carnival or (more likely) choose another cruise line, probably RCCL or NCL.

 

When the bookings move away from Carnival to other lines, you will still be at the mercy of the large agencies.

 

BTW, good luck!

[sept10dsm]

I wonder if this is for all Carnival companies or just Carnival? I did get an email from Carnival regarding this but have only sailed Princess not Carnival

[rickechambers1@aol.com]

IIRC there are other brands that control complete product pricing...I believe Louis Vuitton (and previously...maybe still...Gucci) will not allow pricing to be modified so that the integrity of the pricing power of the brand. Global distribution costs to Carnival have to be in the 10's of millions I would.think so driving business directly to themselves will save a boatload of money. I think this is perfectly legal but very risky and could likely benefit direct competitors. Interesting though how each Carnival brand is managed so independently with their other brands offering continuous incentives.

[CruisingSoon88]

I understand that I may have clients who would choose another line because I may be able to offer them more incentives. I don't think that there are that many people who are on the fence about using a TA. The people who use this site to me are completely different that the average passenger because they are better informed. Most on here use a TA strictly because of the perks that they can offer. In my very limited experience, most people do look to TA's get get a better deal but also as someone who can help them navigate booking a vacation that they are unfamiliar with or just do not have the time or desire to do research. Also, in my own cruise planning, the price of another line is much higher for our family of four. This difference was much more than $100 to $200 that TA's were giving as onboard credit. So I ask would my customer rather sail on another line that the price is $600 higher for their family just so I can give them an onboard credit for $100? I don't think so. Of course, I will gladly book my clients with whichever line they choose. Maybe I will change my mind down the road, but for right now I'm ok with the new policy.

[Ramrac]

Definitely. Assuming NCL/RCI/Celebrity don't follow suit, with TA perks the price differential will narrow considerably (to the extent that one remains). I suspect it'll become harder for many (non-cheerleaders / CCL devotees) to justify selecting Carnival based on value.

 

 

Very true, I really like Carnival but I don't like what seems like a trend of changes. When we book our next cruise we will take a look at other lines to see what they offer. I have seen a couple of NCL cruises for less than Carnival charges doing the same cruise, which surprised me.