Max OBC or other Credit You've Received from a TA

[jelayne]

17 minutes ago, nyc2pdx said:

Gosh I am losing out...I don't get any OBC with my TA.  But I have absolutely no idea who is good and who is not.

When we 1st started cruising we used a brick & mortar TA.  They were very good and we would get a bottle of wine or a dinner.  Then I heard about folks getting OBC or rebate checks so on our next cruise I started asking others on the ship who they booked with & why.  Next cruise when I went to book  called a big box store

and they were offering refundable OBC.   Also called the brick & motar TA who couldn’t come close to matching the offer, their overhead is too high compared to the high volume TAs .  On your next cruise ask others for recommendations.  There is money on the table but not all TAs with lower rates or lots of OBC are good.

[Ken the cruiser]

26 minutes ago, jelayne said:

That’s surprising we always gotten refundable OBC for both Royal & Celebrity.

I agree. We thought it would have been refundable, but that's what they get from X, so what can I say. But to be honest we have never used our TA to manage any of our X bookings. We have such a great X PCC who always goes that extra mile, whether it's providing little know information about our cruise or getting the best deals, transferring our X bookings to our TA just didn't make sense to us. 

[jelayne]

2 hours ago, Ken the cruiser said:

I agree. We thought it would have been refundable, but that's what they get from X, so what can I say. But to be honest we have never used our TA to manage any of our X bookings. We have such a great X PCC who always goes that extra mile, whether it's providing little know information about our cruise or getting the best deals, transferring our X bookings to our TA just didn't make sense to us. 

Ours is passing on part of their commission so not a marketing pass through from X.  
We don’t use the TA for other than booking and price drops.  The one time there was a huge price drop by X after final payment ($4-5k) the TA went to bat and we ended up getting a $2500 reduction and upgrade from AQ to a Celebrity Suite.  The TA frequently has group rates which don’t get the same OBC but  recently cut the cost of a Transatlantic we booked direct with X by $1980 when we transferred it to the TA.  
For us it’s all about the $ and whether I call X or a TA to make a change matters not it’s where to I get tge best deal.

 

[Ken the cruiser]

9 hours ago, jelayne said:

Ours is passing on part of their commission so not a marketing pass through from X.  
We don’t use the TA for other than booking and price drops.  The one time there was a huge price drop by X after final payment ($4-5k) the TA went to bat and we ended up getting a $2500 reduction and upgrade from AQ to a Celebrity Suite.  The TA frequently has group rates which don’t get the same OBC but  recently cut the cost of a Transatlantic we booked direct with X by $1980 when we transferred it to the TA.  
For us it’s all about the $ and whether I call X or a TA to make a change matters not it’s where to I get the best deal.

But it does appear X, or more specifically RCCL, has some say as to what form of "perks", whether refundable or nonrefundable, can be passed along from a TA to a client. Now, if our TA was allowed, as with most of the other cruise lines we book with, to take $$$ off the "bottom line" booking price, then we might decide to let our TA have the booking and give up that PCC insider information. But since they don't, except for maybe an all-inclusive Galapagos cruise where our TA gives a rebate check, we have found the OBC perk you get after you board the ship just isn't worth it to us when compared to the personal attention and knowledge we get from our X PCC.

 

But, that's just us.

[Lane412000]

On 4/5/2020 at 8:58 PM, nyc2pdx said:

Gosh I am losing out...I don't get any OBC with my TA.  But I have absolutely no idea who is good and who is not.

I feel the same way as you. I have always used only two TA, one for Oceania and one for other cruises, like Celebrity, RCCL or Holland America.  Over the years, my wife and I before she passed away took over thirty cruises and never received an OBC from a TA.  Sometimes, perhaps 5-6 times over the years we would have gratuities covered, but I never asked if that was from the TA or the cruise line.  I guess, unfortunately, posters are not allowed to post which TA or cruise agencies they have used to receive OBC.  

[sanger727]

On 4/4/2020 at 7:42 PM, Wine-O said:

 

Precisely.  The flat fee called taxes & port charges is what everyone on the cruise pays.  It differs by itinerary.  On a TA, sometimes it's only around $118 per person.

 

This is completely different from the tax you pay on the actual cruise price, as it is wrapped into that figure.  Naturally, it varies based on how much you actually paid for your cruise.  🍷

I understand what you are talking about. I have had a TA (for the purpose of lowering the OBC they were offering); send out an invoice that broke out the cruise fare into commissionable and non commissionable fare plus port fees and taxes. I’m not entirely sure what the non commissionable fare represents, if it’s taxes or what.

 

separate question for those of you with TAs that offer large amounts of OBC. I’ve only used a TA a couple of times (a large online cruise only TA) and while they don’t offer much in the way of OBC, typically on celebrity they do offer better rates than celebrity does (certainly in the 10% off range); are you getting better rates than celebrity offers AND OBC or is it usually one or the other?

[Wine-O]

1 hour ago, sanger727 said:

separate question for those of you with TAs that offer large amounts of OBC. I’ve only used a TA a couple of times (a large online cruise only TA) and while they don’t offer much in the way of OBC, typically on celebrity they do offer better rates than celebrity does (certainly in the 10% off range); are you getting better rates than celebrity offers AND OBC or is it usually one or the other?

 

My TA sometimes has special group rates on some sailings.  If you do the math, the difference in sailing price with OBC  and group rate without the OBC is normally a wash, but if you take the group rate without any OBC, it's usually a fully refundable fare.  🍷

[whitshel]

On 4/4/2020 at 8:47 AM, Wine-O said:

Those aren't your taxes on your cruise fare.  For example, when you do a dummy booking, it shows cost of the cruise plus taxes/port charges to be, for example, $118.52, added onto your cruise fare.

 

You can bet that if someone pays pays $1000 for a cruise, and another pays $12,000 for a cruise, they don't pay the same tax, but they do pay the same port charges.  Ergo, the taxes on your cruise fare are bundled in with the cruise fare.   You don't see it as a separate line item, but your TA does, that's why they deduct it from the commission-able rate, because they don't get paid commission on the taxes.  🍷  

Not sure where you are going with this.  But here are 3 snips from Cruising Power, the T/A's website.  Same cruise 3 different cabin types Icon suite, balcony and inside.  As you see there is a line item on all 3, NCCF= Non commissionable cruise fare and they are all the same, $225pp.  Its obviously not a tax or it would a different number for each cabin price.  The TAXES and fee's are on a separate line and again all the same.  So at least according to this, there is no mystery tax.  And yes I hid the commission.

 

 

 

[Wine-O]

8 hours ago, whitshel said:

Not sure where you are going with this.  But here are 3 snips from Cruising Power, the T/A's website.  Same cruise 3 different cabin types Icon suite, balcony and inside.  As you see there is a line item on all 3, NCCF= Non commissionable cruise fare and they are all the same, $225pp.  Its obviously not a tax or it would a different number for each cabin price.  The TAXES and fee's are on a separate line and again all the same.  So at least according to this, there is no mystery tax.  And yes I hid the commission.

 

You can't expect the three different cruise prices to pay the exact same tax, can you?  That's why the actual cruise fare tax is wrapped into Line one, Cruise Fare.  Here's a cruise snip of my invoice from my TA for a cruise next year.  Notice under Tax/Fees = $436.79pp.  That includes the line item that everyone pays in Cruising Power of Taxes/Fees/Port Charges = $86.79.  Add on the NCCF  = $225, and the Tax on the cruise fare = $125.   That entire line item of tax/fees is non-commissionable.  The travel agent gets 15% commission of the Cruise Fare of $648 x 2 = $1,296.00 or $194.40.  I get 8% which is rounded to $100.00 OBC from our TA for this cruise.

 

Of the $194.40 the TA gets in commission for my cruise, they give me $100 for this cruise and they keep the rest.  They make their profit in volume.  🍷

Edited April 9, 2020 by Wine-O

[wrk2cruise]

I use the same TA as Wine-O.  Here is the way they display it in the rates section on their website.  NCCF is described as Port Charges.   I look at it like the documentation fee at the auto dealer, just something you have to pay.

 

There are a few on--line TA's which use this booking engine.  I like the fact that I can see the NCCF and the Taxes/Fees.   From there I know exactly what my TA will provide me in OBC.

 

[whitshel]

16 hours ago, Wine-O said:

 

You can't expect the three different cruise prices to pay the exact same tax, can you?  That's why the actual cruise fare tax is wrapped into Line one, Cruise Fare.  Here's a cruise snip of my invoice from my TA for a cruise next year.  Notice under Tax/Fees = $436.79pp.  That includes the line item that everyone pays in Cruising Power of Taxes/Fees/Port Charges = $86.79.  Add on the NCCF  = $225, and the Tax on the cruise fare = $125.   That entire line item of tax/fees is non-commissionable.  The travel agent gets 15% commission of the Cruise Fare of $648 x 2 = $1,296.00 or $194.40.  I get 8% which is rounded to $100.00 OBC from our TA for this cruise.

 

Of the $194.40 the TA gets in commission for my cruise, they give me $100 for this cruise and they keep the rest.  They make their profit in volume.  🍷

Ummm, what cruise is this for? Date, ship?

[whitshel]

You do know that the NCCF is different on all cruises, right?  Just because it was $225 for the cruise I brought up doesn't mean it's $225 for your cruise.

 

And travel agents get 16% on RCCL and Celebrity and with most lines  not 15%.  So if you get 10% obc then that means the T/A gets 6% not a whole lot. 

 

And no, taxes are not rolled into the cruise fare price.  The taxes are in the taxes and fees line.  And yes they are the same for all cabins on that specific sailing.

[Fouremco]

10 hours ago, whitshel said:

And no, taxes are not rolled into the cruise fare price. 

Of course they aren't, but someone here simply won't accept that.

[Wine-O]

Try to use a little bit of simple logic.  If you go to the store and purchase a $100 item and the tax rate is 7%, you are going to pay $7 in tax.  If you purchase a $1,000 item, you will pay $70 in tax.

 

The same goes to the price of staterooms.  The tax is wrapped into the cruise fare and everyone pays the same port charges.  🍷

[wrk2cruise]

Only if it is a value based tax would it vary by price of accommodation.  What taxing authority is levying taxes on cruises?

[M&Msmom]

I use to use a local TA. We would get a bottle of wine  or a $ 25 OBC. It didnt matter if my bookong was $1500.00 or $7000.00. I asked if she could do better. She said if she put me in a group possibly. So we did that. Did I do better? Nada So I checked around with friend and found a large cruise TA based in FL. I now get OBC based on my booking, Usually a specialty dinner and a 10% rebate to me when the cruise it complete. Needless to say I am much happier.

My last booking..6122.20 including 246.20 for port taxes and fees, and 458. travel protection. we then used $1000. in credit card travel credit leavin a balance of 5122.20 .

We got $165.00 refundable OBC, dinner for 2, and we get a 508.00 travel rebate check.

I will take that over a bottle of wine anyday.

[NantahalaCruiser]

7 hours ago, Wine-O said:

Try to use a little bit of simple logic.  If you go to the store and purchase a $100 item and the tax rate is 7%, you are going to pay $7 in tax.  If you purchase a $1,000 item, you will pay $70 in tax.

 

The same goes to the price of staterooms.  The tax is wrapped into the cruise fare and everyone pays the same port charges.  🍷

Not sure why you are assuming that part of all of the NCCF is some sort of a tax e.g. like a sales or value added tax; but if it is a tax, then what governmental entity is receiving the tax revenue? The country that they are incorporated in?

 

My assumption, without any basis what so ever, has always been that cruise lines only pay corporate income taxes and do not collect VAT except in the case of some on-board sales in certain jurisdictions.

Edited April 11, 2020 by NantahalaCruiser

[whitshel]

7 hours ago, Wine-O said:

Try to use a little bit of simple logic.  If you go to the store and purchase a $100 item and the tax rate is 7%, you are going to pay $7 in tax.  If you purchase a $1,000 item, you will pay $70 in tax.

 

The same goes to the price of staterooms.  The tax is wrapped into the cruise fare and everyone pays the same port charges.  🍷

I could show you on all 3 of those quotes that the commission is based off of the "vacation subtotal" minus the NCCF.  Which would mean that us travel agents are making commission off taxes if in fact as you say, the tax is rolled into the "cruise" line.  I'm going to leave it at that.  If you want the proof I can certainly bring it up but i really dont think we need to go there.