Travel Agents and cancellation fees

[mickeysgal]

They don't charge a fee to honor price drops, but I recently had 2 price drops on a cruise & they wanted to take away a large part of the OBC, which I had to fight with them about. For instance, for something like a $75 price drop they wanted to take away $50 OBC. I understand having to decrease the OBC, but within reason! That was absurd. I got them to only drop of $25, and this has happened twice so far on the same booking.

 

This was the only reason I booked with them...for the OBC. If this happens to me, this very well may be the last time I book with them. Too much game playing. There are other TAs out there. It's a shame really...we've booked at least 3-4 cruises with them...thousands of dollars. If the cruise line's standard published rate drops for the same cabin category, why would they they want to recapture some of the OBC? In my case, the OBC they gave wasn't tied to any particular cabin category ...just cruise length (7 nights).

[Lsimon]

This was the only reason I booked with them...for the OBC. If this happens to me, this very well may be the last time I book with them. Too much game playing. There are other TAs out there. It's a shame really...we've booked at least 3-4 cruises with them...thousands of dollars. If the cruise line's standard published rate drops for the same cabin category, why would they they want to recapture some of the OBC? In my case, the OBC they gave wasn't tied to any particular cabin category ...just cruise length (7 nights).

 

As I understand it, although I'm not in the business, TA's give two types of OBC. The first is one offered by Celebrity as a perk on a promotional program. If you move to a lower rate the promotional OBC provided by Celebrity might be reduced or eliminated.

 

The second is basically a form or rebating part of their commission to you. It makes sense that if the price of the cruise drops the amount of their commission drops as well and that there would be less to share with you. I don't know the commission structure between the TA and Celebrity so I don't know if it is a flat percentage or not. But I do know that a portion of the total cruise price is considered non commissionable. That portion includes the port taxes and fees but is higher than just those items. So if your total cruise fare is, for example, $1,000 and the price drops to $900 the TA's net commission might drop more than 10% even though there is a 10% reduction in your total cost.

Edited March 16, 2014 by Lsimon

[cruzsnooze]

I have found it's easier and less expensive in the long run to book directly with the cruise line. When I want to make a change I can call directly and get things done. I've changed cabins within the same category, just saw a better location and if I waited untill a TA did it for me I'd loose the cabin. TA's are not available every day whereas the cruise line is. I think TA's will go the way of the doo doo bird. Remember when the airlines had offices in key locations and you'd walk in to make reservations and buy tickets ? Now airlines have all but eliminated personal contact and expect you to book online only. Technology is eliminating many customer service jobs but on the flip side it's also easier to find information about which cruise line goes where and which dates and compare prices.

[mickeysgal]

As I understand it, although I'm not in the business, TA's give two types of OBC. The first is one offered by Celebrity as a perk on a promotional program. If you move to a lower rate the promotional OBC provided by Celebrity might be reduced or eliminated.

 

The second is basically a form or rebating part of their commission to you. It makes sense that if the price of the cruise drops the amount of their commission drops as well and that there would be less to share with you. I don't know the commission structure between the TA and Celebrity so I don't know if it is a flat percentage or not. But I do know that a portion of the total cruise price is considered non commissionable. That portion includes the port taxes and fees but is higher than just those items. So if your total cruise fare is, for example, $1,000 and the price drops to $900 the TA's net commission might drop more than 10% even though there is a 10% reduction in your total cost.

 

Thanks for explaining this.

 

Time will tell that's for sure.

 

In the meantime, I need to start looking for a TA that gives decent perks that doesn't have such a steep cancellation fee. I understand the need for a fee, I just don't think it needs to be so steep, or perhaps by cabin and not by person. In a perfect world nothing happens and you go on the cruise you booked, but when you're looking at a cruise over a year in advance, for a family of five, sometimes things change...$500 would hurt.

[dbsb3233]

I have found it's easier and less expensive in the long run to book directly with the cruise line. When I want to make a change I can call directly and get things done. I've changed cabins within the same category, just saw a better location and if I waited untill a TA did it for me I'd loose the cabin. TA's are not available every day whereas the cruise line is. I think TA's will go the way of the doo doo bird. Remember when the airlines had offices in key locations and you'd walk in to make reservations and buy tickets ? Now airlines have all but eliminated personal contact and expect you to book online only. Technology is eliminating many customer service jobs but on the flip side it's also easier to find information about which cruise line goes where and which dates and compare prices.

To me, TA's really fall into two categories... the type like you describe with the small office in a local strip mall where you go in and get person service and they should you all the brochures; and then there's the big online and/or group discounters.

 

I agree the first type is a dying breed, and has been since internet booking went mainstream. The second type I never really thought of as "travel agents" per se until I saw everyone here calling them that. I guess the term fits, it was wasn't what I was used to when thinking of the term (I also pictured the first type).

 

I'm assuming that most of the people posting here at CC are referring to the 2nd type (the big online discounters) when they use the term "TA", rather than the little neighborhood mom-n-pop shops.

[cruzngrl]

I also book with this online TA..Just did my btb's for next year. As far as the price drops go. I feel that I got an outstanding price, the ppd gratuities, the drink package,an extra 100 for obc for valentines I think it was and an extra 75 for referring other people from past cruises. add it up. I received as much in extras as was dang near the price of my cruise. For even a 100.00 price drop, it is not worth it to try to get the lower price and lost all the extras I received. I think it all boils down to being happy with the price you booked at. This btb has gone up approx 250.00 pp in the last month so again, I am extremely happy!

 

 

However, I can understand for 500.00 wanting to make some changes. But offers are based on cruise price and availability, the lower the less goodies, the higher, the more..Supply and Demand

 

 

The 100.00 cancellation fee?..they set all this up for me, (I did all my research with everyone else and no one had all of the above mentioned goodies) but lets say 6 months down the road they do. And it's 50.00 pp less. They have a cost to pay their people for their time etc.They can't take their pay back because I changed bookings. I have never bought trip insurance before but with all the weather issues this year I did splurge to protect myself. If it's not used fine but....for 50.00...I would have been really upset with myself down the road for not purchasing and having needed it..And the trip insurance will cover their cancellation fee.

Edited March 16, 2014 by cruzngrl

[ghstudio]

I am 99% sure that I am using the same TA that many of you have been referencing...the one with the $100pp cancellation fee. We've booked with them before but I don't remember the cancellation fee being this steep. Tell me, for those that use this TA, how do they view a price drop before final payment? Do they honor it and not charge a cancellation fee to essentially capture the price drop AND do they leave the perks intact?

 

The fee was originally $50. Then they changed to $100 on some deals (group rate deals) and $50 for others...now it seems to be $100 for any booking. I've spoken with them and I understand their logic on group rates where they contract with Celebrity for a certain number of cabins and if too many drop out, they have to make up the difference...and in those cases, some cancellation fee seems reasonable. However, I don't understand a cancellation fee where they are offering celebrity's normal rate with some perks that only apply if you actually cruise and they get their commission. That's where we had our falling out and that's why we are not booking with other agencies for many of our cruises. We do spend a lot on cruises, but our lives are flexible so we occasionally cancel some cruises. I understand that if you book another cruise, they will waive the cancellation fee once...but that doesn't help...sometimes we have to cancel a couple of times...and they charged us a cancellation fee, even though we booked another cruise at the same time which we actually took. Poor business judgement...actually stupid is probably a better word.

 

Our experience has been that they will handle price drops without a fee, but the perks may change....since they are based on their commission. For example, it's unreasonable to assume that you booked on board with 1-2-3 and transfer it to a TA who may offer a lower group rate and still expect 1-2-3 to apply.

Edited March 16, 2014 by ghstudio

[corey07850]

We've used the large online TA that i assume is being mentioned here and had to deal with their cancellation penalty... Basically we had booked a normal balcony for something like $2600/pp for our honeymoon EU cruise this summer and a couple months later they had a special where we were able to boom AQ for $2099/pp plus more OBC than we had previously and kept the 123 Go promotion. Rationale was that it was a completely different promotion and not just a price drop so it was treated as a cancellation and rebooking.

 

Of course i would never want to lose out on $200 but in this case it was to save $1000, upgrade to AQ, and get another $100 in OBC so totally worth it.

 

I imagine they do it to discourage people from calling to take of advantage of price drops over and over.

 

PS first post on the Celebrity boards... The past few years we have sailed NCL after they started their freestyle program years ago. Had quite a few sailings on the Horizon and Zenith to Bermuda back in the day with family and are excited to be at a point where we can sail Celebrity again on our own :)

Edited March 16, 2014 by corey07850

[Happy2cruise]

We also have used the big online agency I think is being referred to here. It was for our last cruise on the Silhouette a week ago. They gave us 3 different perks in the form of OBC's.

 

Once onboard, we got the first perk immediately. After 2 days, went down to passengers relations and they told us that was all we had coming. Luckily had the printout from agency showing the 3 different perks. Day 4 of cruise, one of the other obc's was finally credited to our account. Passengers relations still trying to get third perk but as of disembarkation nothing:(.

 

Got home contacted agency and was told they would check into it. A week later, nothing. Needless to say, this agency lost our business!

[phyllisrf]

We use a TA out of Arkansas for many years. She is very reliable and always returns our phone calls within a day or two. We have never paid a cancelation fee.

 

 

 

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[SHIPMEOUT]

Yes I would expect them to just suck it up. It is part of doing business and there are many many industries where sales related activities take a lot of time and effort even though sales might not go through. It is just part of making a sale and providing services.

 

I guess you're ok with people who spend many hours of a travel agent's time getting a vacation built for them and then not even booking, or booking themselves on-line using all the information the travel agent put together for them, or booking then changing, then cancelling before final payment.

 

I work only on commission and I work hard for my clients 7 days a week. I do not get paid any commission unless the trip is taken. I've also never charged a cancellation or change fee, although it has been totally warranted many times and within my scope to do so.

 

I guess you'd be ok then with working at your job for no pay? I guess that means you'd be putting absolutely no value in your work.

 

Really.

Edited March 16, 2014 by SHIPMEOUT

[ghstudio]

I guess you're ok with people who spend many hours of a travel agent's time getting a vacation built for them and then not even booking, or booking themselves on-line using all the information the travel agent put together for them, or booking then changing, then cancelling before final payment.

 

I work only on commission and I work hard for my clients 7 days a week. I do not get paid any commission unless the trip is taken. I've also never charged a cancellation or change fee, although it has been totally warranted many times and within my scope to do so.

 

I guess you'd be ok then with working at your job for no pay? I guess that means you'd be putting absolutely no value in your work.

 

Really.

 

If I used you and you spent a great deal of time putting together a custom african safari with different game camps, guides and hotels and I cancelled, you would have earned a cancellation fee. If you book a celebrity cruise for me (and I'll tell you the cabin I want) and then I cancel four months later, you have spent about 15 minutes of your time (sorry..it's celebrity, maybe 30 because you have to wait on the phone). That's not worth much of a cancellation fee...certainly not $100 per ticket. You know, I could even live with a "we'll hold $100 per ticket non refundable credit for a year...and if you don't book something in that time, it's ours"...but not "book another cruise today or we'll charge you $100 per booking.

 

BTW, I don't know if we are all talking about the same agency....I only know of one that charges $100 per booking cancellation fee.

[SHIPMEOUT]

If I used you and you spent a great deal of time putting together a custom african safari with different game camps, guides and hotels and I cancelled, you would have earned a cancellation fee. If you book a celebrity cruise for me (and I'll tell you the cabin I want) and then I cancel four months later, you have spent about 15 minutes of your time (sorry..it's celebrity, maybe 30 because you have to wait on the phone). That's not worth much of a cancellation fee...certainly not $100 per ticket. You know, I could even live with a "we'll hold $100 per ticket non refundable credit for a year...and if you don't book something in that time, it's ours"...but not "book another cruise today or we'll charge you $100 per booking.

 

BTW, I don't know if we are all talking about the same agency....I only know of one that charges $100 per booking cancellation fee.

 

Please read my post. I clearly said building a vacation for a client. Not booking a cruise only. But, even for a cruise, you indeed may be someone who goes to your agent with your cruise and cabin all picked out, but do you think everyone comes to an agent with everything picked out and decided? There are many people who come in without the faintest idea where they want to go, or on which cruise line, or in which type of cabin, in which location, or anything about cruising at all if they've never been on one. So please don't assume that even a cruise booking would take "15 minutes" of a travel agent's time.

 

Our agency will not charge a cancellation fee in probably 99.9% of the cases. It is not automatic. It is also incorrectly assumed by many people that all travel agents charge any type of fees at all. I didn't say anything about it being $100 either.

 

My point in all this is that I wish people would realize that there is value in using a travel agent and they can not be all painted with the same brush. There are far too many assumptions and generalizations made (not just on Cruise Critic) about travel agents, by people who know little or nothing about what goes on behind the scenes. Many really do work hard for the business and are available to clients 24/7...and many work to get all the future price reductions possible for clients even though it can and does mean a big drop in already small commissions from suppliers. Those of you who have worked with a good travel agent will know the value of what they do for you.

[mickeysgal]

If you book a celebrity cruise for me (and I'll tell you the cabin I want) and then I cancel four months later, you have spent about 15 minutes of your time (sorry..it's celebrity, maybe 30 because you have to wait on the phone).

 

Ok - this cracked me up.:D

 

I think $100 per person is just too steep to be reasonable. Getting a bit too full of themselves. Like others have said, there are other TAs out there with just as nice perks and unfortunately for this TA, I think that is where many may be headed.

[ghstudio]

The key in your case is that you are flexible in applying a cancellation charge. You don't have to tell me about folks who have no clue what they want or require a great deal of handholding, I am a realtor.

 

Ta's can be extremely helpful. We used that Arkansas ta because they had been to the Galapagos and we valued their expertise. I used a ta for our private tour through china...invaluable assistance.

 

But for those of us that know what we want, it's unreasonable to me to charge a cancellation fee. The agency I'm speaking of does not discriminate...they charge everyone. That just doesn't gain loyal repeat customers.....

[fleckle]

.........But for those of us that know what we want, it's unreasonable to me to charge a cancellation fee. The agency I'm speaking of does not discriminate...they charge everyone. That just doesn't gain loyal repeat customers.....

While I agree with what you are saying in theory, I think it would create even more problems and animosity to charge some passengers a cancellation fee and not others.

 

Although it appears reasonable to charge a fee for those who consume a lot of a travel agent's time and then cancel, it would be difficult to determine where to draw the line -- above 15 minutes, 30 minutes, an hour, 3 hours.

 

Also, the length of time required to process the reservation is often not the fault of the customer. Sometimes it is a matter of sheer luck.

 

For two passengers in the same situation who call to book a cruise knowing exactly what they want, the TA may be able to complete one transaction within 10 minutes, but be stuck waiting 40 minutes or more for another.

 

Additionally, it is more than just the value of the TA's time spent on the reservation, but also the loss of the anticipated commission from the cruise line for that cabin.

 

 

I don't think there is an easy "correct' answer for this one.

I just want to know the TA's terms up front, and then I can determine whether or not I want to give them my business.

 

Even if they charge a hefty cancellation fee, sometimes the other benefits they offer make it worthwhile for me to book with them anyway, while other times not.

 

 

It is like agreeing to a cruise line's terms when I book a cruise. There are conditions that I dislike and wish were different, but if I want to do business with Celebrity, or any other cruise line, I either accept their terms or look elsewhere.

 

They do have the ability to make exceptions for extenuating circumstances, but the general basic cancellation policy is the same for everyone.

 

(Well, I suppose I should amend that to say for everyone in the USA, since apparently their cancellation terms are different for those from different countries.)

Edited March 16, 2014 by fleckle

[Happy2cruise]

If I use a TA and booked several cruises with them and built a good working relationship with them, why should I be charged a cancellation fee if the reason is beyond my control (ex sickness, family death, etc.) and I do not have a history of cancelling:confused:. If on the other hand, I have a history of cancelling, than a fee is deserved....just my opinion;)

[mickeysgal]

This cruise that we have currently booked - I booked using my TA's online service. They sent an generic auto generated email confirming it immediately and then the next day the real booking email was sent. I talked to absolutely NO ONE. I used no one's time. We knew exactly what we wanted. So how does that constitute having a $100 per person cancellation charge?

[Richiebaseball]

This cruise that we have currently booked - I booked using my TA's online service. They sent an generic auto generated email confirming it immediately and then the next day the real booking email was sent. I talked to absolutely NO ONE. I used no one's time. We knew exactly what we wanted. So how does that constitute having a $100 per person cancellation charge?

 

Because they are a for profit business.

As a business they can decide what, if any fees to charge, and their business model and the market will determine if they can continue and how much.

As a consumer you can decide whether you want to potentially pay that fee simply by either using that agency or not. If enough people feel that whatever perks or service they get (let's go with perks as I think the majority of people have figured out the service isn't there) outweigh the potential fee and continue to book then it's quite possible the agency has no incentive to change that model. If they feel that business is suffering because of the fee then I'm sure they would look at changing it.

It really is that simple.

[dbsb3233]

This cruise that we have currently booked - I booked using my TA's online service. They sent an generic auto generated email confirming it immediately and then the next day the real booking email was sent. I talked to absolutely NO ONE. I used no one's time. We knew exactly what we wanted. So how does that constitute having a $100 per person cancellation charge?

Another purpose cancellation fees serve is to keep people from gaming the system, by booking to "hold" something, then frequently cancelling when a better deal comes along.

 

A little of that probably doesn't cause TAs and cruise lines a ton of headaches, but lots of it surely would.

[mafig]

We use a TA out of Arkansas for many years. She is very reliable and always returns our phone calls within a day or two. We have never paid a cancelation fee.

 

 

 

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A day or two? I would be beside myself. My TA gets back to me within an hour or two. If I ask a question at night on a weekend I usually have a response next morning when she's posted at 3 AM (she says she has problems sleeping). My deals may not be as good as the other agency, but I do get deals.

I found her via another cruise website that does allow discussion of TAs (they're there:)).

Almost booked with Arkansas several times in the past but it used to be that they weren't open on weekends or holidays (even minor ones ... I called them once and they were closed for Flag Day or something like that). Now I think they have an assistant. I also read that you do not want to ever get on the wrong side of them. That's all I'm saying.

Back in the olden days of Cruise Critic you were allowed to mention travel agents. And there were some very lively discussions back then. :D

[Philomath]

I've booked multiple times with this TA and did again over the weekend. While it drives me BONKERS that they're not open on the weekend and I don't love the idea of a cancellation fee, their group rates have time and time again been a vast savings over anything else out there - and trust me I've looked. I scoured every major TA online and talked to a few in person for this Med cruise I booked and the price I got from the TA we're discussing was over $1000 less (per person!!!) than anything else. That's good enough for me!

[kevinyork]

I've booked multiple times with this TA and did again over the weekend. While it drives me BONKERS that they're not open on the weekend and I don't love the idea of a cancellation fee, their group rates have time and time again been a vast savings over anything else out there - and trust me I've looked. I scoured every major TA online and talked to a few in person for this Med cruise I booked and the price I got from the TA we're discussing was over $1000 less (per person!!!) than anything else. That's good enough for me!

 

 

I agree completely. Same for us.

 

 

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[cbr663]

If I use a TA and booked several cruises with them and built a good working relationship with them, why should I be charged a cancellation fee if the reason is beyond my control (ex sickness, family death, etc.) and I do not have a history of cancelling:confused:. If on the other hand, I have a history of cancelling, than a fee is deserved....just my opinion;)

 

The end result is the same for the TA regardless of the reason for the cancellations.

[FLJudi]

We also have happily used the lady from AK for many years. Make lots of changes because of cabins becoming available, new deals available before final payment, etc. and have never paid a change or cancellation fee. Need an answer on the weekend? Send an email.