Who Pays for OBC - TA or Cruise Line

[jssabs]

In all my cruises, I have always received on board credits (OBC).  Usually it is through a consortium such as Virtuoso.  I have always wondered who actually provides the OBC, the Consortium/TA or the cruise line.  If anyone in the industry knows please chime in 

[Stumblefoot]

1 hour ago, jssabs said:

I have always wondered who actually provides the OBC…

Don’t kid yourself, unlike what Wes notes above, every single OBC is ultimately sourced via the cruise company. If the cruise company didn’t pay such large commissions to travel consortiums, credit card companies, or travel agents, none of them would offer you an OBC. All 3rd party sources are just giving you a portion of their commission.

[dawntrdr]

Query whether SS pays a different commission scale to a TA than it does to its in-house Cruise Consultant.   

[Observer]

8 hours ago, dawntrdr said:

Query whether SS pays a different commission scale to a TA than it does to its in-house Cruise Consultant.   

I do not believe that the in-house cruise consultants are permitted to offer any onboard credits anymore.

[markham]

Since you are paying for whatever you may get “back” in OBC, and the OBC would be spent on cruise line products which may/may not be good value, wouldn’t you rather have cash? Your TA gets a commission. He/she does not want to share it with you. But in a logical arrangement cooked up between the TA and cruise line you get an OBC that is then worth less than your cash.

 

Eg. Buy an apron at home and then buy one with your OBC in the cruise line’s shop. How different do you expect a land store vs a cruise ship’s margins will be? Hint: one has a captive audience that needs to spend their dosh before the end of the cruise. Which apron will be better value for the money? And how many apron models do you get to chose from at home vs the ship shop?

 

Happy and healthy sailing!

[A Tucson Guy]

1 hour ago, markham said:

Since you are paying for whatever you may get “back” in OBC, and the OBC would be spent on cruise line products which may/may not be good value, wouldn’t you rather have cash? Your TA gets a commission. He/she does not want to share it with you. But in a logical arrangement cooked up between the TA and cruise line you get an OBC that is then worth less than your cash.

 

Eg. Buy an apron at home and then buy one with your OBC in the cruise line’s shop. How different do you expect a land store vs a cruise ship’s margins will be? Hint: one has a captive audience that needs to spend their dosh before the end of the cruise. Which apron will be better value for the money? And how many apron models do you get to chose from at home vs the ship shop?

 

Happy and healthy sailing!

Here's a different slant. We use our OBC to buy wines on the ship from the special wine list. I can buy the wines on the ship for less that I can buy in a wine store in the USA, let alone buying the same wine in a restaurant! On the ship we bought a bottle of Dom for $150 using the OBC. Most of the rest of the wine offering we similarly price- such a deal. I also use the OBC for dinner at La Dame. It is worth it to us to eat there. Different strokes for diffent folks!!