How do TAs make money?

[NoobCruise]

I keep seeing people say it's better to book with a TA because they often include OBC or other amenities like a free specialty dinner, wine etc. I've also read that the cruise lines will no longer allow TAs to offer lower prices than the cruise line itself offers. So if the TAs are offering the same price for the same cabin as the cruise line AND pays for OBC or other amenity, how are they making any money for the work they do? Seems to me they'd be in the hole.

[kitty9]

The ones that offer the perks are usually from huge agencies who do high volume business. They forgo part of their commissions to give the perks. But they might also be the same ones who charge for things like changes or cancellations.

[paul929207]

Large volume TAs will make money off of many bookings.

[dsrdsrdsr]

They get commission from the cruise line.

[A2Mich]

I keep seeing people say it's better to book with a TA because they often include OBC or other amenities like a free specialty dinner, wine etc. I've also read that the cruise lines will no longer allow TAs to offer lower prices than the cruise line itself offers. So if the TAs are offering the same price for the same cabin as the cruise line AND pays for OBC or other amenity, how are they making any money for the work they do? Seems to me they'd be in the hole.

 

Because YOU as an individual, are calling the cruise line to book ONE cabin. Travel agents, especially members of the large franchises, will typically buy blocks of cabins on various popular cruise itineraries. When buying in bulk, they were able to purchase the cabin space cheaper. this difference in actual purchase price is where the OBC's and other perks typically come from.

 

The fact that TA's are paid commissions by the cruise line is why I use a TA. I can at least feel better knowing that by my using a TA, I can help keep yet another American employed. By booking directly you are cutting out the TA from the equation. AFAIK, the cruise line call centers are still US based, but wouldn't be surprised if these jobs eventually get outsourced to India or Pakistan - and then more US jobs lost. Hoping that won't happen, but in today's economy of maximizing profits and cutting costs at any expense, it's bound to happen.

[sail7seas]

Because YOU as an individual, are calling the cruise line to book ONE cabin. Travel agents, especially members of the large franchises, will typically buy blocks of cabins on various popular cruise itineraries. When buying in bulk, they were able to purchase the cabin space cheaper. this difference in actual purchase price is where the OBC's and other perks typically come from.

 

The fact that TA's are paid commissions by the cruise line is why I use a TA. I can at least feel better knowing that by my using a TA, I can help keep yet another American employed. By booking directly you are cutting out the TA from the equation. AFAIK, the cruise line call centers are still US based, but wouldn't be surprised if these jobs eventually get outsourced to India or Pakistan - and then more US jobs lost. Hoping that won't happen, but in today's economy of maximizing profits and cutting costs at any expense, it's bound to happen.

 

 

When we book, by phone or e-mail, directly with the cruise line, we are helping to keep an American employed as (s)he works as Personal Cruise Consultant (PCC) employed by HAL.

 

[A2Mich]

When we book, by phone or e-mail, directly with the cruise line, we are helping to keep an American employed as (s)he works as Personal Cruise Consultant (PCC) employed by HAL.

 

 

You're right---for now. Hopefully that doesn't change in the future, but like I said, wouldn't surprise if you're speaking with Habib in Delhi here soon....TA's speak with a US based call center when they contact the cruise lines. Guess I have a good relationship with my TA, as we will talk outside of just cruising!

[leaveitallbehind]

I keep seeing people say it's better to book with a TA because they often include OBC or other amenities like a free specialty dinner, wine etc. I've also read that the cruise lines will no longer allow TAs to offer lower prices than the cruise line itself offers. So if the TAs are offering the same price for the same cabin as the cruise line AND pays for OBC or other amenity, how are they making any money for the work they do? Seems to me they'd be in the hole.

 

The simple answer is they are paid a commission for the booking from the cruise lines - usually 10 - 15% of the base stateroom rate. There also is a small credit allowed for blocks of rooms booked by an agency.

 

About 75% of all cruises are booked through TA's, so this is a valuable relationship between the cruise lines and the TA's.

 

Most large cruise lines do not allow discounting of stateroom rates - the rate charged by the cruise lines is the same as through a TA. Any non cruise line sponsored perks offered by a TA as an enticement to book through them is paid to you out of their commissions.

 

Hope this answers your questions.

[marco]

And big volume agents probably get cabins at rates we can't because of "behind closed door deals" with the line. They can't offer lower rates on the base cruise, so the sell the cruise at the same price but pass on the "deal" as an OBC or some such perk.

[NoobCruise]

Thank you all. I understand the process now :)

[Keith1010]

Either the agency or the TA or a combination of both give back some of their commissions in this amenity.

 

Keith

[Krazy Kruizers]

Our TA gets a salary as well as commissions from the cruise lines. She doesn't do just cruises, she also books land vacations for people, hotels, air, etc.

[Hlitner]

The large reputable online agencies will often enter into deals with the cruise lines to move a an awful lot of cabins. Sometimes they are not permitted to advertise special rates (this violates certain cruise lines pricing policies) but will offer lower rates and/or amenities via private e-mail lists or over the phone. To find out about these deals you need to register your e-mail with these agencies. One particular large online agency does a great job packaging cruises (often back to backs) with free air and other amenities such as on board credits and pre paid gratuities. The savings can be quite large...especially where international air is part of the deal.

 

We no longer waste any time with smaller local agencies or so-called outside agents since they just cannot compete in terms of price and amenities.

 

 

Hank