On board credit

[DrJW]

Is the amount of OBC determined by O or by TA. It seems to be different from one passenger to another, even though on the same sailing. I checked with my TA; he replied that the amount of OBC is determined by several factors:

 

TA's ongoing relationship with Oceania [ does he or she book many groups with O.]

 

The time of booking..sometimes OBC is higher early on and then gets reduced later on.

 

Additionally, I understand that some TA's provide some kind of credit refund to their clients after they complete their cruise. I'm assuming that this comes out of their commission???

 

Speaking of commission..does anyone have a guess of what percentage of the total fare is paid as commission to the TA..or is this condidential information?

 

Thanks for sharing your thoughts on the above.

 

J

[pacheco18]

The biggest variable is how much commission ur ta keeps for herself and how much she gives to you.

 

 

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[orchestrapal]

The OBC also depends on the level of cabin. We are used to a TA that sends a rebate prior to sailing rather than a further OBC. That means all our OBC is non-refundable because it come directly from O.

[pacheco18]

Some give a rebate of the refundable portion post cruise

 

Lots of ways to do it

 

 

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[critics0001]

The range is 10-17% of the fare(not including port charges, taxes, etc). The actual amount varies by cruise line, number of cabins sold by the agency, specific cruises, etc. You can get this info through searching the web for the sites that cater to the TAs.

[pacheco18]

It has been said many times on these boards that the most generous TAs give back between 10 and 11% of the commissionable cruise fare as an OBC or some other amenity

[tanny18]

We have been getting both an OBC and a rebate from our TA. If the OBC is entirely from the TA, then it's refundable. If it is in conjunction with Oceania, then it may not be all refundable. Oceania usually has some promotion that includes either prepaid grats and/or OBC. We have more than 15 cruises so in additional to all that we get another $500 OBC. Just depends on how the TA and O work the OBCs. We get our rebate with our final papers, so that's cash in pocket before we go and then use whatever OBC there is, which most times is considerable. Arlene;)

[LHT28]

Speaking of commission..does anyone have a guess of what percentage of the total fare is paid as commission to the TA..or is this condidential information?

 

Thanks for sharing your thoughts on the above.

 

J

 

Not all of the cruise fare you pay is commissionable

 

Do people ask how much you earn for a living ?

How about giving 10% to people you do business with

 

This topic really make me crazy ...such greedy people here

 

I would not give my commission back to clients ..I may give them a small discount .. volume or no volume I have bills to pay as well :rolleyes:

 

Ok I am done here

 

Lyn

[pacheco18]

I not sure why this infuriates you so because this is simply a "discount" model --lower markup -- same as you get in Walmart or any other discount store. A merchant can decide to mark something up full price and fewer customers, or sell at a discount and make more money through volume. Car dealerships do it too.

 

I am a part owner of a retail business (a yarn store). I can gouge my customers (and they will likely go elsewhere -- like Amazon for books or online for yarn -- or I can make the price more attractive and make a sale. I don't expect my customers to want to overpay so I can make a bigger profit.

 

Any business can set prices where they want. The customer makes the call.

 

One of my favorite quotes from my mother ''anyone can pay the most." The travel agent business is a competitive business and customers have a right to get the best deal offered as with any other purchase.

 

Call it capitalism if you like.

[ronrick1943]

Not all of the cruise fare you pay is commissionable

 

Do people ask how much you earn for a living ?

How about giving 10% to people you do business with

This topic really make me crazy ...such greedy people here

I would not give my commission back to clients ..I may give them a small discount .. volume or no volume I have bills to pay as well :rolleyes:

Ok I am done here

Lyn

 

I agree with Pacheco18, That's why my TA lost a lot of business from my friends and myself. She said she is a full service agent, however she really only books and does very little for you and if you have a problem she tells you your being difficult. Plus she didn't even follow up when she was told friends didn't get what she promised them. But now she has to live with herself--she knows what she did....Rick

Edited July 8, 2014 by ronrick1943

[tanny18]

Travel agents do what they want insofar as a discount/rebate, etc. is concerned. If the TAs choose to give us money back in the form of a check or a refundable OBC, why not? This is how they run their businesses - others choose to just be a "good" travel agent. Laraine is right, why pay the most when you can get a reduction. I had a friend (I'm sure most of us has a friend like this) who is only happy when she pays the most. She thinks she's getting the best. Not true - buying a sweater that's been marked down -we all want to save some $$, so why not on a cruise. It is what the market will bear and we should all take advantage of that. No one is selling you a cruise for less than they want to sell that cruise. Same way you bargain at markets and you think you really got a deal and you did, but the merchant got exactly what he wanted and not a penny less. Arlene

[Bowie MeMe]

Not all of the cruise fare you pay is commissionable

 

Do people ask how much you earn for a living ?

How about giving 10% to people you do business with

 

This topic really make me crazy ...such greedy people here

 

I would not give my commission back to clients ..I may give them a small discount .. volume or no volume I have bills to pay as well :rolleyes:

 

Ok I am done here

 

Lyn

 

This is so true. My daughter and her husband tried to start a travel agency from scratch and it just didn't happen. Could not compete with big discounters AND after they would spend time and effort on planning a trip for someone that someone would take the discounters deal:( . Trying to charge up front for planning was an even worst experience -- well we don't need that much help just a few things and besides you get commission (many many travel items now have no commission like airfares). Even someone like me who plans for myself and spends lots of time and effort and researching gets asked for advice and then the person turns around and is unhappy because --well I don't want to spend that much or I thought I should get more (why does everybody book the absolute lowest price room and are surprised when they are in the back looking at the air conditioning units instead of the ocean!). IMHO not worth the risk to friendship to recommend travel arrangements and travel planning to those you know. This is why there are very very few travel agents and it has gone more or less the way of the telephone operator -- everyone connects on their own. I value my TA and treat her very well because especially for cruises she does get a better price than I do by myself.

[ronrick1943]

Travel agents do what they want insofar as a discount/rebate, etc. is concerned. If the TAs choose to give us money back in the form of a check or a refundable OBC, why not? This is how they run their businesses - others choose to just be a "good" travel agent. Laraine is right, why pay the most when you can get a reduction. I had a friend (I'm sure most of us has a friend like this) who is only happy when she pays the most. She thinks she's getting the best. Not true - buying a sweater that's been marked down -we all want to save some $$, so why not on a cruise. It is what the market will bear and we should all take advantage of that. No one is selling you a cruise for less than they want to sell that cruise. Same way you bargain at markets and you think you really got a deal and you did, but the merchant got exactly what he wanted and not a penny less. Arlene

 

Couldn't agree more, you always don't get what you pay. And TA that gives back can give you just as good service as one that doesn't give back. Rick

[StanandJim]

I'm sorry Arlene, but your description is so inaccurate that I just had to jump in.

 

I'd venture to say that every darned one of us would love to save money on a Cruise, but if we are to follow your analogy about the Sweater, the CRUISE is the sweater and the DISCOUNT that you speak of is taken directly from the Salesman's Commission, which he has theoretically earned by selling the sweater to you (on which he has to pay Income Tax, btw).

 

Some people feel that demanding a piece of the Commission Pie is a completely acceptable business practice. Leaving fairness and ethics aside, in no case is an Agent rebate coming from any other place besides the Agent's pocket.

 

It is interesting that Pacheco brought up the example of Walmart (Post #9 in this thread), as the Supreme Court of Canada recently ruled that they illegally closed a Canadian Branch when the employee's tried to engage in collective bargaining:

http://www.mondaq.com/canada/x/325958/employee+rights+labour+relations/The+WalMart+saga+an+employer+cannot+just+close+up+shop+he+will+have+to+justify+it+too

 

-while in the United States, our Supreme Court recently ruled that Corporations have the right to a religious conscience.

http://en.wikipedia.org/wiki/Burwell_v._Hobby_Lobby

If they do, I hope that they will follow the words of the Good Book. :D

 

 

Romans 4:4 --- Now to the one who works, his wages are not counted as a gift but as his due.

[pacheco18]

I'm sorry Arlene, but your description is so inaccurate that I just had to jump in.

 

I'd venture to say that every darned one of us would love to save money on a Cruise, but if we are to follow your analogy about the Sweater, the CRUISE is the sweater and the DISCOUNT that you speak of is taken directly from the Salesman's Commission, which he has theoretically earned by selling the sweater to you (on which he has to pay Income Tax, btw).

 

Some people feel that demanding a piece of the Commission Pie is a completely acceptable business practice. Leaving fairness and ethics aside, in no case is an Agent rebate coming from any other place besides the Agent's pocket.

 

It is interesting that Pacheco brought up the example of Walmart (Post #9 in this thread), as the Supreme Court of Canada recently ruled that they illegally closed a Canadian Branch when the employee's tried to engage in collective bargaining:

http://www.mondaq.com/canada/x/325958/employee+rights+labour+relations/The+WalMart+saga+an+employer+cannot+just+close+up+shop+he+will+have+to+justify+it+too

 

-while in the United States, our Supreme Court recently ruled that Corporations have the right to a religious conscience.

http://en.wikipedia.org/wiki/Burwell_v._Hobby_Lobby

If they do, I hope that they will follow the words of the Good Book. :D

 

 

Romans 4:4 --- Now to the one who works, his wages are not counted as a gift but as his due.

 

Speaking as an attorney, you legal analogies makes no sense. Sorry.

 

The agent sets the price/amenities.

We don't have to "demand" anything.

 

A smart agent would rather sell 20 cruises for $500 commission each than 3 cruises for $1000 commission each. It's simple arithmetic. It is no different for any commission-based salesperson.

 

I applaud all of you who want to pay more than you have to.

Arlene and I won't be doing that any time in the near future or ever.

[LHT28]

Same way you bargain at markets and you think you really got a deal and you did, but the merchant got exactly what he wanted and not a penny less. Arlene

 

I think your analogy is flawed

I have worked in retail & NEVER in all my years did I have to give a customer a percentage of my wages for them buying a product

 

The stores mark up their merchandise 100% or more so discounting the item is not the same as a TA giving you 10% of their earnings

[StanandJim]

Speaking as an attorney, you legal analogies makes no sense. Sorry.

 

The agent sets the price/amenities.

We don't have to "demand" anything.

 

A smart agent would rather sell 20 cruises for $500 commission each than 3 cruises for $1000 commission each. It's simple arithmetic. It is no different for any commission-based salesperson.

 

I applaud all of you who want to pay more than you have to.

Arlene and I won't be doing that any time in the near future or ever.

 

I'm afraid that you have overstepped, dearie, in case you have forgotten it is the JUDGE or the JURY who get to decide what does and does not make sense...not even the founding fathers were optimistic enough to entrust that kind of responsibility to an Attorney.

 

There are certainly cases, the World Cruise is a very good example, where I would have no objection to dickering between Agent and client about the commissions; my problem with the way that you present it is that people of a certain mindset will apply the same logic to a 7 day cruise in an inside cabin.

 

And that, my dear, will certainly kill the Goose which laid the Golden Egg.

Edited July 8, 2014 by StanandJim

[pacheco18]

I think your analogy is flawed

 

I have worked in retail & NEVER in all my years did I have to give a customer a percentage of my wages for them buying a product

 

 

 

The stores mark up their merchandise 100% or more so discounting the item is not the same as a TA giving you 10% of their earnings

 

 

Apples and oranges. U were a sAlaried employee with fixed wages. No effect on your income if anyone purchased. Most tAs are independent contractors who exercise control over their income. It will be as much or as little as they can achieve

 

 

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Edited July 8, 2014 by pacheco18