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Cruise lines encourage use of TA's


lenquixote66
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3 minutes ago, lenquixote66 said:

 

 I worked 60 hours a week ,non profit and I was very happy.I did not need luxuries..

You still haven't figured out what I'm saying. 

Somehow I'll bet you got a paycheck every week or two or every month and you knew how much that paycheck would be. That would be a lot better than what I got. My employees got their paychecks every week but whether I took any money home was very questionable and not something I could rely upon. The last thing I am talking about is luxuries. I just wanted to be sure I could pay my mortgage and buy groceries.

 

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8 minutes ago, LHT28 said:

some people  need to pay bills & buy food 

glad you did not have  that problem

you are more fortunate than others  trying to make a living & survive

but  what that has to do with your original post  ..not sure

 

8 minutes ago, LHT28 said:

some people  need to pay bills & buy food 

glad you did not have  that problem

you are more fortunate than others  trying to make a living & survive

but  what that has to do with your original post  ..not sure

I was posting to the retired TA .That pertained to my original post.

 

I survived during my work days but I have been disabled since 2010 and I am unable to do 90 percent of what I could do im 2009.

 

 

 

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15 minutes ago, njhorseman said:

You still haven't figured out what I'm saying. 

Somehow I'll bet you got a paycheck every week or two or every month and you knew how much that paycheck would be. That would be a lot better than what I got. My employees got their paychecks every week but whether I took any money home was very questionable and not something I could rely upon. The last thing I am talking about is luxuries. I just wanted to be sure I could pay my mortgage and buy groceries.

 

Very good that you were  able to

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3 minutes ago, ldubs said:

This thread has the most disconnected exchanges I think I've ever seen.   😮

 

Every time I see you post something I reflect on the good old days when I hung out in Sausalito and Berkeley.I wish I was still there. Three of my friends are living in Berkeley and many others in Southern California.

 

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3 minutes ago, lenquixote66 said:

Every time I see you post something I reflect on the good old days when I hung out in Sausalito and Berkeley.I wish I was still there. Three of my friends are living in Berkeley and many others in Southern California.

 

 

We are about 25 miles further east beyond Berkeley.  Truth be told, I haven't been there for probably six years.  Sausalito is one of our go to places when we have visitors from out of town.  

 

Tacking a few days onto a California coastal sounds like it could be a nice homecoming cruise for you!  

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1 hour ago, njhorseman said:

I owned a travel agency for a number of years. Typically commissions paid by cruise lines were 10 to 20%. 

Very simply it's cheaper to pay commissions to travel agents than to employ sufficient numbers of in house agents to service all the customers.

Plus 1. A cruise line's use of worldwide commissioned TA's  is far more efficacious than hiring an army of minimally trained/minimally experienced employees/contractors and paying them salaries/benefits.

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11 hours ago, lenquixote66 said:

Why do they do that ? It is just costing them more because they pay the TA's.

Hi

 

I still am not understanding what you are saying. You are saying that "cruise encourage use of TA's". What are you getting at. As opposed to "not encouraging the use of TA's". Do you mean that the cruise lines could offer customers who book though them directly additional discounts that would not be available if they booked through a TA? Trying to stifle competition?

 

If that's what you are suggesting. it might not work. Assuming it was legal. All tour operators have had a long history of supporting and encouraging T.A.'s. It might be seen as biting the hand that feeds them. Just imagine, a given company making an effort to discourage T.A.'s. Then imagine an extensive network of T.A.'s refusing to have any further dealings with that specific travel industry company. I could see it being not having a positive outcome. Not likely worth the effort. Even with our internet economy, T.A.'s still fill many cabins, airline seats, resort rooms, etc...I wouldn't consider trying to cut the T.A.'s out of the loop as being a smart step.

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11 hours ago, lenquixote66 said:

I think you do not understand the point I am making .The cruise line has to pay 30 percent for each cruise booked with a TA .Let us say hypothetically that the average cruise is $5000.00 that means they pay $1500.00.An employee working for $10 an hour would cost so much less.

First of all let me support the comments made by njhorseman (and others) in that a 30% commission rate is totally incorrect and whomever told you that was misleading you.  The actual commission paid is currently in the 10 - 16% range for cruises.  Of that I am certain.  

 

Secondly, the reason cruise lines recommend TA's is that they have a broader combined consumer reach and industry experience across all cruise lines, not just one as would be represented by an individual cruise line representative.  This is supported by the fact that globally, 75% of all cruises booked annually are done so through 3rd party TA, either on line, standard brick and mortar agency, or big box retailer.  Only 25% are booked directly with the cruise lines individually.

 

Lastly, the cruise lines would not be saving that commission by eliminating a TA as they are paying their internal customer support employees a wage to book and service your cruise reservation. Booking directly has direct overhead expenses associated with that.

 

I would suggest that it would be a better discussion if you first understood the facts - or at least accepted that information when presented v your incorrect presumptions.

 

Edited by leaveitallbehind
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When paying employees, it's not just their hourly wage. You also pay their social security, and other employment taxes the state and federal government require. On top of that are any benefit packages.  It is much cheaper and easier to simply pay a commission. 

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Where do you get that they encourage TAs? That would imply that they would prefer you to book with TA at a commission charge to them vs direct. They would prefer you to book direct if you already know what you want.

 

They keep a good partnership with TAs because those are marketing teams fighting to get people aboard for them. Some people are crazy about their TAs and trust them with their lives. If I was a betting man, I would guess the average TA sale is a larger one for the cruise line than booking direct.

 

I don't buy that it's because "they don't want to pay employees". A cruise line sales person is peanuts compared to a TA fee. With also such a large company, they have economies of scale on their side. I just don't believe the cruise line employees can always connect with the customer on a personal level like their TA can. That can bring in far more to the bottom line that cutting a few line-levels.

Edited by Joebucks
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As a TA for 17 years booking only cruises , 10% to 20% comm. with most cruise lines nearer 16% .

We were Top Producers for most all of the cruise lines .

Keep in mind that is the % the Agency gets . That was  split with the TA based on TA's Sales Volume .

 

Agencies can earn more on cruise bookings by blocking Speculative Groups and selling the "Free Guest" earned for 

more income , but the comm. %  remains the same.

 

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9 hours ago, Texas Tillie said:

It appears that the OP was heavily into the Saturday evening cocktail hour when he started this thread and continued as the thread progressed!

I have not tasted alcohol since 1990. If CC allowed the posting of TA's I would have posted the names of the agencies who employ people who stated emphatically that they receive 30 percent. One is a very well known agency with offices all over the US

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16 minutes ago, lenquixote66 said:

. When did I post the number  of cruises I have taken ? Between 1973 and 2018 I have been on less than 20 cruises.

 

A cruise every other year or even every third year is inconceivable luxury to most Americans and 95%+  of the global population.

 

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Just now, lenquixote66 said:

. If CC allowed the posting of TA's I would have posted the names of the agencies who employ people who stated emphatically that they receive 30 percent. One is a very well known agency with offices all over the US

maybe you are confusing the independent sales reps  portion of the commission

In those cases the outside sales rep may indeed get 30%  but it is only of the commission paid to the agency

EG: if the agency got $1000. in commission on a cruise the  rep would get $300

 

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18 hours ago, njhorseman said:

I owned a travel agency for a number of years. Typically commissions paid by cruise lines were 10 to 20%. 

Very simply it's cheaper to pay commissions to travel agents than to employ sufficient numbers of in house agents to service all the customers.

 

The above is so very true!  

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18 hours ago, njhorseman said:

I owned a travel agency for a number of years. Typically commissions paid by cruise lines were 10 to 20%. 

Very simply it's cheaper to pay commissions to travel agents than to employ sufficient numbers of in house agents to service all the customers.

 

The above is so very true!  

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51 minutes ago, OCruisers said:

 

The above is so very true!  

Agreed. As it is some of the cruise lines do not have staff on board doing the Future cruise work but agents instead, even though you can still direct your cruise to your existing TA.

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2 hours ago, Toofarfromthesea said:

 

A cruise every other year or even every third year is inconceivable luxury to most Americans and 95%+  of the global population.

 

In 1973 I took a cruise. My next one was in 2008.My next 2010,then 2011 ,then 2013 and one to two a year since.

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There can be no doubt that some cruise lines encourage people to book through TA's.

 

If you are unsure of this simply spend a few minutes on the HAL website or the Celebrity website.

Edited by iancal
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