TA OFFERING OBC

[Toofarfromthesea]

2 hours ago, NIATPAC29 said:

Just do the whole thing yourself.You do not need a travel agent.

 

Why would I give away money by not using a TA?

[ldubs]

This is really seat-of-the-pants, but I would think there is a point where the $$ benefit of a travel agent starts to disappear.  Take a $500 entry level inside cabin on mass market line.   How much fare commission is there really to share back as OBC?  

 

You guys know more than me -- is this the case?  

[whogo]

3 hours ago, Heidi13 said:

 

I believe this varies by cruise line.

 

With Viking, the OBC from the TA is listed as refundable. When our last cruise was cut short we received the entire OBC provided by our TA back, shortly after returning home.

The sizeable leftover amount from a combination of shareholder, referral coupon, Seabourn, and travel agent credits was promptly refunded to us by Seabourn. I had not expected it, thought I'd read that some wasn't refundable, did not look the gift horse in the mouth.

[maryandmarge]

On 9/18/2020 at 9:35 AM, paul929207 said:

We often gt extra OBC deom our TA. Usually it is about $50 to $100 per person per leg. (We often book b2b)

This is what I thought maybe everyone was receiving from their TA's that gave OBC.  $50 or $100 or maybe a free dinner at one of the specialty restaurants.      But reading thru this forum it says that the TA usually receives 10 - 16% of basic cost of cruise and port fee.     And some people are receiving 10% from their TA - then how does the TA make any money?     I feel stupid asking this - but feel I must be missing the point somewhere along the line.   I apologize for this :)     And I do appreciate everyone who has helped me try to understand the TA's OBC offered to their clients.   

[iancal]

My understanding is that the higher volume agencies get commission adders when they achieve a certain volume .

 

  

Edited September 19, 2020 by iancal

[drsel]

This is what I thought maybe everyone was receiving from their TA's that gave OBC.  $50 or $100 or maybe a free dinner at one of the specialty restaurants.      But reading thru this forum it says that the TA usually receives 10 - 16% of basic cost of cruise and port fee.     And some people are receiving 10% from their TA - then how does the TA make any money?     I feel stupid asking this - but feel I must be missing the point somewhere along the line.   I apologize for this :)     And I do appreciate everyone who has helped me try to understand the TA's OBC offered to their clients.   

On all the major Cruise lines, the minimum agents commission is 10% and the maximum is 16%, depending on volumes.

 

This commission is paid only on the basic fare and not on the port fees or taxes.

 

The agents also have the privilege of buying OBC out of their commission at a discount. (The exact discount is unknown)

 

The giant online US travel agents are in the 16% commission bracket, so they can easily pass on 10 to 12%, depending on your Cruise fare.

 

Also there is a website, where the agents can bid for your cruise business and offer higher amounts of OBC.

 

So, if your basic Cruise fare is 4000 (excluding port fees and taxes), the giant agent will get 640 as commission.

So, he may offer you 400 as a discount, and still earn 240.

Or instead, he can use this 400 to buy OBC worth 500 and gift it to you. (assuming 20% discount only for Cruise agents).

 

Since they do hundreds or even thousands of bookings, they make a decent amount of profit.

 

Hope this answers all your questions and clears all your doubts. if not, just ask

[drsel]

However if you buy an entry level inside cabin and your basic Cruise fare is only 400 (instead of 4000), they will earn only 64.

 

In that case, they may offer you only 25 OBC instead of 50 OBC

 

This is how the OBC per cent also varies, depending on the basic Cruise fare

[Toofarfromthesea]

3 hours ago, ldubs said:

This is really seat-of-the-pants, but I would think there is a point where the $$ benefit of a travel agent starts to disappear.  Take a $500 entry level inside cabin on mass market line.   How much fare commission is there really to share back as OBC?  

 

You guys know more than me -- is this the case?  

 

You can test it out yourself.  Put that kind of room up for quotes on one of the bidding sites and find out.  That is not the kind of cabin I book so I don't know the answer.

Edited September 19, 2020 by Toofarfromthesea

[NIATPAC29]

5 hours ago, Toofarfromthesea said:

 

Why would I give away money by not using a TA?

YOU gain more than you lose

 

[maryandmarge]

4 hours ago, drsel said:

On all the major Cruise lines, the minimum agents commission is 10% and the maximum is 16%, depending on volumes.

 

This commission is paid only on the basic fare and not on the port fees or taxes.

 

The agents also have the privilege of buying OBC out of their commission at a discount. (The exact discount is unknown)

 

The giant online US travel agents are in the 16% commission bracket, so they can easily pass on 10 to 12%, depending on your Cruise fare.

 

Also there is a website, where the agents can bid for your cruise business and offer higher amounts of OBC.

 

So, if your basic Cruise fare is 4000 (excluding port fees and taxes), the giant agent will get 640 as commission.

So, he may offer you 400 as a discount, and still earn 240.

Or instead, he can use this 400 to buy OBC worth 500 and gift it to you. (assuming 20% discount only for Cruise agents).

 

Since they do hundreds or even thousands of bookings, they make a decent amount of profit.

 

Hope this answers all your questions and clears all your doubts. if not, just ask

Thank you so much - this really helps explain it.    

[ldubs]

2 hours ago, Toofarfromthesea said:

 

You can test it out yourself.  Put that kind of room up for quotes on one of the bidding sites and find out.  That is not the kind of cabin I book so I don't know the answer.

 

Yes, of course you are correct.  It would seem almost obvious that the amount of give back will be more as the fare increases, so probably a dumb question on my part to begin with.   

[drsel]

Thank you so much - this really helps explain it.    

The discount at which agents buy OBC could also vary with volumes.
for example, if a giant TA buys 100,000 OBC to gift his clients, I am sure he will get a really good discount

[Toofarfromthesea]

17 hours ago, NIATPAC29 said:

YOU gain more than you lose

 

 

Like what?  Do you have specifics?

[iancal]

We certainly do not feel that we lose anything by dealing with a TA vs the cruise line.  Quite the opposite.

 

Over the years we have gained a fair bit. Not only a discounted fare but we have had reliable, independent advice across the spectrum of cruise lines.  Not biased adviced from a cruise company employee.  We would deal with a good TA even if the price was identical.

 

The other benefit....not having the deal with poorly designed cruise line websites or cruise line CSR's with little or no cruising knowledge or expertise.

 

The buy is strictly a business relationship for us.  Not looking for a new best friend.  At the end of the day we consider this to be a commodity product. Price, service, delivery.  

Edited September 20, 2020 by iancal

[NIATPAC29]

7 hours ago, Toofarfromthesea said:

 

Like what?  Do you have specifics?

You have more control over your booking , You cut out the middleman headache,  look and shop for deals, easy to do on your own ,many are hard to reach and even harder to get things changed quickly.,also its your money  why bother to support a TA with todays technology? Most TAs are all about thier money not yours.

[NIATPAC29]

On 9/17/2020 at 7:23 PM, maryandmarge said:

After recently reading a lot of the CC comments on OBC from Carnival and OBC from their TA's I have a quick question.     All but one of my past cruises we have booked thru a TA that is also considered a friend.   She has been a TA forever.     We have never received any kind of OBC or perks from her.   When reading thru the different comments it seems that a lot of the TA's have given their clients OBC.   I never knew any of them did this.     I have always done all of the research on my own and just emailed her the ship, the dates, the exact room that we wanted and she would book it.    I have no idea how much she makes on this - but I've done all the leg work and all she has to do is call the cruise line and enter it.    I'm sure we are one of her easiest clients.   Seeing that other people are getting extra perks from their TA's makes me wonder why I use her since she hasn't offered any.    Would appreciate any comments good or bad on what everyone thinks.    Thanks much -    Be safe

Fire her.Do it yourself.Its easy,fun and it gives you more control over your booking and $$

[drsel]

You have more control over your booking , You cut out the middleman headache,  look and shop for deals, easy to do on your own ,many are hard to reach and even harder to get things changed quickly.,also its your money  why bother to support a TA with todays technology? Most TAs are all about thier money not yours.

Yes, I agree that you have more control over your booking if you book directly with the cruise line.
But I don't agree with everything else--
1. The travel agent is certainly not a headache
2. We look & shop for deals and offers from different travel agents on the bidding site--that is also very easy to do on your own.
3. The travel agents work 365 days a year so they are certainly not difficult to reach.
In fact there are so many of them in each company that even if one is on leave, you will get someone else.
4. Changes are usually done in 1--3 days
5. It's certainly your money, so why pay more or waste a discount / OBC
6. Today's technology helps you to get the best deal from a wide range of travel agents, which you would not get directly from the cruise line.
7. Most travel agents are concerned about giving you the best deal, so that they can retain your business.
8. They work on tiny margins and high volumes.

[NIATPAC29]

8 hours ago, drsel said:

 

Yes, I agree that you have more control over your booking if you book directly with the cruise line.
But I don't agree with everything else--
1. The travel agent is certainly not a headache
2. We look & shop for deals and offers from different travel agents on the bidding site--that is also very easy to do on your own.
3. The travel agents work 365 days a year so they are certainly not difficult to reach.
In fact there are so many of them in each company that even if one is on leave, you will get someone else.
4. Changes are usually done in 1--3 days
5. It's certainly your money, so why pay more or waste a discount / OBC
6. Today's technology helps you to get the best deal from a wide range of travel agents, which you would not get directly from the cruise line.
7. Most travel agents are concerned about giving you the best deal, so that they can retain your business.
8. They work on tiny margins and high volumes.

You must have found one of the rare efficient agents. My poor history with TAs led me to do my own bookings. "BIDDING SITE" ?

[Toofarfromthesea]

15 hours ago, NIATPAC29 said:

You have more control over your booking , You cut out the middleman headache,  look and shop for deals, easy to do on your own ,many are hard to reach and even harder to get things changed quickly.,also its your money  why bother to support a TA with todays technology? Most TAs are all about thier money not yours.

 

Control over my booking?  I'd rather the TA spend time on the phone with the cruiselines than do it myself.

I've never experienced middle man headache as you call it. What is that, anyway?

As to money, the whole point of using a TA is to save money.

Have you ever even used a TA?  

[drsel]

 
Control over my booking?  I'd rather the TA spend time on the phone with the cruiselines than do it myself.
I've never experienced middle man headache as you call it. What is that, anyway?
As to money, the whole point of using a TA is to save money.
Have you ever even used a TA?  

Yes he has and had bad experiences.
I feel sorry for him. Can we help him out?

[ontheweb]

1 hour ago, drsel said:

 

Yes he has and had bad experiences.
I feel sorry for him. Can we help him out?

Unfortunately no as the rules of this site do not allow you to say my TA is excellent and he/she is....

[drsel]

 

 

 

You must have found one of the rare efficient agents. My poor history with TAs led me to do my own bookings.

Kindly read my posts # 8, 31 and 32 to understand exactly how it works.

 

[Hlitner]

Since the early days of CC I have often posted my personal opinion that it makes sense to shop around, among reputable cruise/travel agencies for the best deal.  What I have learned here on CC is that many folks have their own reasons for dealing with specific agents or directly with the cruise lines.  Those folks apparently do not care about saving money but rather find loyalty to a person, agency, PCC, etc. is more important then money.  When I read the OP's comments that immediately came to mind.  The OP prefers to deal with a specific TA and has been willing (or has been naïve) to pay the price.  The price can be heavy.  We have previously posted that folks can routinely save 7-10% (vs booking direct with a cruise line) by simply shopping around.  For those of us who take longer or more expensive cruises the savings can amount to thousands of dollars for a single booking/cruise.    We normally book 3-5 cruises a year (75-110 days) and shop among several cruise agencies on our personal "short list" as well as explore other new options.  I do have a favorite cruise agency/agent and I have told her that I am very loyal as long as she has the best deal :).  As a rule I expect to save at least 10% on every cruise although there are times when we must settle for a little less.

 

We have also noticed here on CC that the only folks who debate this issue are folks who claim to be "loyal" to somebody, an agency, etc.  To us there is no argument...if you are willing to pay hundreds or thousands of extra dollars because you feel some kind of "loyalty" or "bond" with an order taker (PCC, travel agent, etc) then that is your choice.

 

Hank

[iancal]

I have never understood this 'control issue'.   I do not understand how we have any loss of control by dealing with a TA.  

 

From our perspective we actually have more control by dealing with an independent TA who represents many cruise lines and can compare their offerings and their business practices.

 

Really...what is a cruise line rep going to tell me when I ask about a certain cruise ship on in the fleet.  Will they tell me that the feedback has not been good and the last few clients who booked described the ship as a dog?  I doubt it.  Or will they remain silent and let us go ahead and book?  

Edited September 22, 2020 by iancal

[ldubs]

6 hours ago, Hlitner said:

Since the early days of CC I have often posted my personal opinion that it makes sense to shop around, among reputable cruise/travel agencies for the best deal.  What I have learned here on CC is that many folks have their own reasons for dealing with specific agents or directly with the cruise lines.  Those folks apparently do not care about saving money but rather find loyalty to a person, agency, PCC, etc. is more important then money.  When I read the OP's comments that immediately came to mind.  The OP prefers to deal with a specific TA and has been willing (or has been naïve) to pay the price.  The price can be heavy.  We have previously posted that folks can routinely save 7-10% (vs booking direct with a cruise line) by simply shopping around.  For those of us who take longer or more expensive cruises the savings can amount to thousands of dollars for a single booking/cruise.    We normally book 3-5 cruises a year (75-110 days) and shop among several cruise agencies on our personal "short list" as well as explore other new options.  I do have a favorite cruise agency/agent and I have told her that I am very loyal as long as she has the best deal :).  As a rule I expect to save at least 10% on every cruise although there are times when we must settle for a little less.

 

We have also noticed here on CC that the only folks who debate this issue are folks who claim to be "loyal" to somebody, an agency, etc.  To us there is no argument...if you are willing to pay hundreds or thousands of extra dollars because you feel some kind of "loyalty" or "bond" with an order taker (PCC, travel agent, etc) then that is your choice.

 

Hank

 

We have done both agents and direct bookings.   We don't do long cruise like you but have still experienced some great savings by using agents.      

 

When you say you target a 10% savings on every cruise are you meaning that the TA you go with is typically 10% better than the others you shopped, or are you using some other baseline?