Pricing via the Web

[moondoggie]

Having just returned from Infinity last month, we're ready to book next year's cruise. For years I have used a certain 'cruise competitive' website to compare prices and then to book with them--all experiences have been very positive. We always know exactly what we want, so do not need the time or expertise from a TA.

 

This year I received four 'quotes'--each one of them identical. Is this not a perfect example of price fixing? Has anyone found a more advantageous rate or way to find better pricing?

 

Thank you!

[tbelian]

Is this not a perfect example of price fixing?

 

no, it is not.

 

If real (repeat REAL) price fixing was going on in this industry the government would have stepped in long ago.

[SheilaNC]

Depends on the cruiseline - several (RCLL and Celebrity for example) do not allow TAs to discount their prices. However, premiums offered by online TAs differ greatly (from onboard credits, coupon booklets, wine, trip insurance, etc). So check to see which of the 'same' price online quotes includes the premiums that you value.

[teajak]

Yes, use a good TA.

[Sky Sweet]

Having just returned from Infinity last month, we're ready to book next year's cruise. For years I have used a certain 'cruise competitive' website to compare prices and then to book with them--all experiences have been very positive. We always know exactly what we want, so do not need the time or expertise from a TA.

 

This year I received four 'quotes'--each one of them identical. Is this not a perfect example of price fixing? Has anyone found a more advantageous rate or way to find better pricing?

 

Thank you!

 

No, because TA's are merely agents for Celebrity and are governed by the laws of agency. This situation is not comparable to a tangible product that a retail owner purchases from a manufacturer, and subsequently resells to the general public. However, if Princess and Celebrity (two different cruise lines) got together and agreed to have identical prices for the same itinerary that would be price fixing.

[CGTNORMANDIE]

The current pricing policy for RCI/X is devised to get pax to book directly with RCI/X. Since TAs are independent the law says that this is not price fixing but I say it is price fixing with smoke and mirrors and since the TAs are independent, I think this policy constitutes A RESTRAINT OF TRADE since RCI/X is acting as though the TAs are not independent.

 

ROSS

[Sky Sweet]

The current pricing policy for RCI/X is devised to get pax to book directly with RCI/X. Since TAs are independent the law says that this is not price fixing but I say it is price fixing with smoke and mirrors and since the TAs are independent, I think this policy constitutes A RESTRAINT OF TRADE since RCI/X is acting as though the TAs are not independent.

 

ROSS

 

Ross, let me ask you a hypothetical question. Pretend you are a real estate developer who just built a new subdivision and decided to use more than one real estate broker to sell these houses. Would you have the right to insist on selling all identical models at the same price, no matter which real estate agent sold it for you? Keep in mind that this is a very different situation than if an invester bought a few properties from you at pre construction prices, and then resold them for more than he paid but less than market value at the time.

[Cruisechik]

Ross, let me ask you a hypothetical question. Pretend you are a real estate developer who just built a new subdivision and decided to use more than one real estate broker to sell these houses. Would you have the right to insist on selling all identical models at the same price, no matter which real estate agent sold it for you? Keep in mind that this is a very different situation than if an invester bought a few properties from you at pre construction prices, and then resold them for more than he paid but less than market value at the time.

 

 

The buyer and seller determine the price - what the market will bear. Some people negotiate better deals than others and some realtors charge less commission. I have never been to a new home neighborhood where price was not negotiable to some extent. Buyers definitely pay different prices for the same floor plans. A while back, I read that the National Association of Realtors is in some sort of mess right now with the government for trying to exclude reduced-fee agencies from the MLS. The NAR was trying to disncourage competition in the real estate arena and encourage "price-fixed commissions".

[Sky Sweet]

The buyer and seller determine the price - what the market will bear. Some people negotiate better deals than others and some realtors charge less commission. I have never been to a new home neighborhood where price was not negotiable to some extent. Buyers definitely pay different prices for the same floor plans. A while back, I read that the National Association of Realtors is in some sort of mess right now with the government for trying to exclude reduced-fee agencies from the MLS. The NAR was trying to disncourage competition in the real estate arena and encourage "price-fixed commissions".

 

This is true, but the builder/seller is the one who determines what he is willing to accept from a buyer, and has the right to decide that every real estate agent he is using must sell the same model for the exact same price. Even though the commission paid by a seller to his real estate agent is always negotiable, and a seller will frequently accept a lower sales price if it is offset by a reduced real estate commission, it would be illegal for a real estate agent to secretly rebate part of his commision to a buyer.

[Sky Sweet]

This is true, but the builder/seller is the one who determines what he is willing to accept from a buyer, and has the right to decide that every real estate agent he is using must sell the same model for the exact same price. Even though the commission paid by a seller to his real estate agent is always negotiable, and a seller will frequently accept a lower sales price if it is offset by a reduced real estate commission, it would be illegal for a real estate agent to secretly rebate part of his commision to a buyer.

 

I used the expression "exact same model" to illustrate a point about the law of agency, which also applies to travel agents, but in reality this situation rarely exists because certain locations within the same subdivision are more desirable than others, while similar models often have different upgrades. Thefore, a seller will be much more flexible about what he will accept for a house that backs up to an expressway than one that is directly on a cul de sac. There are, also, a number of other reasons why a seller will accept a lower sales price. When we moved to our present house ten years ago, we submitted an all cash contract to purchase this property which put us in a much better negotiating position that a buyer who needed a mortgage.