Travel Agent Compensation

[BillHana]

How are TA's surviving during these no cruise times? I assume their commission is paid when the cruise is paid in full or after it sails.

What happens if a FCC is applied and the actual $ collected is much lower? Does that reduce the commission paid?

What happens when a booked and paid in full cruise is cancelled and refunded? Must the commission be paid back?

From my experience it takes considerable time to negotiate and process a Lift and Shift.

Many of us like and use TA's and what them available for all the gyrations and be there for us when cruising finally starts.

Thumbs up to TA's

 

[BirdTravels]

Many are out of work, like everyone else. I have got more cold calls that ever asking if I want to book a cruise. 

[Ourusualbeach]

Just now, BillHana said:

How are TA's surviving during these no cruise times? I assume their commission is paid when the cruise is paid in full or after it sails.

What happens if a FCC is applied and the actual $ collected is much lower? Does that reduce the commission paid?

What happens when a booked and paid in full cruise is cancelled and refunded? Must the commission be paid back?

From my experience it takes considerable time to negotiate and process a Lift and Shift.

Many of us like and use TA's and what them available for all the gyrations and be there for us when cruising finally starts.

Thumbs up to TA's

 

Commission is paid after final Payment or if the reservation is in a group it is paid after the ship sails. They do not need to be paid back.

 

Commission  is paid on FCC amounts only when the cruise actually sails.

 

Commission is paid on a paid in full reservation if it is cancelled by Royal and then commission paid again when the reservation with a redeemed FCC sails. 
 

 

[Cigar King]

11 minutes ago, Ourusualbeach said:

Commission is paid on a paid in full reservation if it is cancelled by Royal and then commission paid again when the reservation with a redeemed FCC sails. 

This is interesting.  I'm actually glad to read this.  I had assumed the TA was making nothing until ships started sailing again.

[Ourusualbeach]

Just now, Cigar King said:

This is interesting.  I'm actually glad to read this.  I had assumed the TA was making nothing until ships started sailing again.

It’s still next to nothing.  Very few reservations get paid in full.  Maybe one or two  in 10.  A lot that are paid in full are paid with FCC’s do even if it’s cancelled no commission on those is paid until the redeemed FCC actually sails. 

[soremekun]

3 of my 6 reservations are paid in full. No FCCs used.  

Edited March 10, 2021 by soremekun

[nelblu]

32 minutes ago, Ourusualbeach said:

Commission is paid on a paid in full reservation if it is cancelled by Royal and then commission paid again when the reservation with a redeemed FCC sails. 
 

 

Suppose a cruise was paid in full in December  2019 for an  April 2020 sail.  RCL subsequently cancelled--are you saying that the TA got their initial comms.  from the  fully paid reservations.  Then the TA gets add'l comms. on redeemed FCCs.  Doesn't make sense.

 

[Ourusualbeach]

7 minutes ago, nelblu said:

Suppose a cruise was paid in full in December  2019 for an  April 2020 sail.  RCL subsequently cancelled--are you saying that the TA got their initial comms.  from the  fully paid reservations.  Then the TA gets add'l comms. on redeemed FCCs.  Doesn't make sense.

 

Yes that is what I am saying.  

[lovescats5]

And TA's earn every cent they get.  Thanks to my new TA, he is an awesome TA.

 

[Jimbo]

1 hour ago, nelblu said:

Suppose a cruise was paid in full in December  2019 for an  April 2020 sail.  RCL subsequently cancelled--are you saying that the TA got their initial comms.  from the  fully paid reservations.  Then the TA gets add'l comms. on redeemed FCCs.  Doesn't make sense.

 

Not a bad gig huh ?..........the agent will get paid 3 times if it sails in April 2022 for the same paid cruise.

[Ourusualbeach]

Just now, Jimbo said:

Not a bad gig huh ?..........the agent will get paid 3 times if it sails in April 2022 for the same paid cruise.

Wrong.  The max is twice.

[Jimbo]

1 minute ago, Ourusualbeach said:

Wrong.  The max is twice.

Any chance that will change?

[Ourusualbeach]

Just now, Jimbo said:

Any chance that will change?

None 

[Jimbo]

Is the loan thing(from RCCL) still going on to the travel agencies?

Edited March 11, 2021 by Jimbo

[Ourusualbeach]

Just now, Jimbo said:

Any chance that will change?

The reason that the reason that the TA is paid on the initial paid in full booking and on the redemption of the FCC is for a couple of reasons.

 

First, they did the work on the first booking and are doing the work on the second booking and in many cases a couple of bookings in between.

 

second, the customer owns the FCC.  If Royal only paid on the FCC that actually sails and not on the booking they cancelled the client could book themselves o4 with another TA and the original TA wouldn’t be paid a dime.  Also in reverse, if they didn’t pay on tje FCC then if the customer took their FCC to a new TA then that TA wouldn’t get paid. Most cruise lines have adopted this policy of payment which is fair and equitable to all involved. 

[Ourusualbeach]

5 minutes ago, Jimbo said:

Is the loan thing(from RCCL) still going on to the travel agencies?

Yes, although there are some struggles trying to meet legislative requirements in some states that they are trying to work through.  The amount that you are eligible to borrow is based on commissions earned during a set period of time pre Covid. From what I understand it would work out to less than 10% of a TA’s income.

Edited March 11, 2021 by Ourusualbeach

[Rancher Dave]

2 hours ago, Jimbo said:

Not a bad gig huh ?..........the agent will get paid 3 times if it sails in April 2022 for the same paid cruise.

If TAs didn't get paid anything except for what sailed, many who are still holding on would have gone under, likely without helping pax get issues on cancelled rez worked out. Hard to expect a group of folks trying to make a living to work for free doing way more work than they did to get paid when cruises were sailing. Likewise the cruise lines who aren't protecting commissions are pissing off agents who likely won't recommend those lines in the future, so deciding to not pay agents effectively reduces the sales force for that line. 

 

As others have commented a lot of the cancelled cruises have happened before final payment was due, so no payout on those cruises. In those cases if the pax takes a full refund, the agent did all of their work for no compensation...multiply that times too many transactions and that agent is at the food bank asking for help feeding their family. 

 

Some agents having to do a lot of extra work on cancelled cruises are enforcing their fees associated with such work as it becomes their limited source of income. TAs don't fall into the same category as airline workers who got government funded paychecks when they weren't needed to fly. 

 

[molly361]

10 hours ago, lovescats5 said:

And TA's earn every cent they get.  Thanks to my new TA, he is an awesome TA.

 

I agree 100 percent

[CILCIANRQTS]

If your TA has been spending lots of time for you rebooking and hand holding, they are very appreciative of occasional gift cards!!

(Excepting the group on CC that says they don’t tip anything above what they have to.)

[twangster]

My TA confirmed she was paid for a SilverSea booking that cancelled and fully refunded to me (eventually).  It helped her a lot as not all cruise lines are doing this.  She has said there are some nuances with L&S but didn't get into details.  

 

I know not everyone uses a TA but it's always struck me when people complain about their "interest free loan" to Royal meanwhile Royal is protecting TA commission.  That's a pretty high cost for an "interest free loan".  

[davekathy]

19 hours ago, lovescats5 said:

And TA's earn every cent they get.  Thanks to my new TA, he is an awesome TA.

 

Not the one I'm using for our March 2022 B2B cruise.👎 Unfortunately I can't give her a negative shoutout here on CC!  

Edited March 11, 2021 by davekathy

[TheMiz]

Gee I have a question for you and fellow past and present agents.

 

I decided to retire before the pandemic ,  and just run out my commissions 

 

I am due commissions on cruises that were book on the following dates

Feb 24 2017 - Nov 11 2018 and May 24 2019  total commissions around $1000

working as a home agent at 80% of the commissions

 

Since Jan 2020 the agency I worked with has dodged emails or has come up with strange excuses on where the commissions were as they couldn't find any  so for over a year I sat waiting emailing ever few weeks. In a Feb 9th email I was told I would have an answer in one week. WRONG   

 

I ended up emailing a contact in Miami and with in 3 hours I was told the commissions were indeeded paid and the dates they were paid.

 

Armed with this I emailed the and the SAM  

 

I finally get an email on April 27th 2021 

In the email it is stated the commissions were found but they were only paying me 50% of them.

 

Then after an exchange of emails I am told 

They "no longer receives the entire commission, instead we receive a commission split. I have forwarded you 50% of the entire commission even before we have received our portion of the commission to resolve this issue. "

 

Now I know I am out of the loop since all this covid stuff but has anyone else heard of something like this ?