Update from TA - MSC

[phissy]

FYI

Just chatting with our travel agent.

He told me that MSC no longer allows travel agents to discount cruises.

He is able to offer additional OBC or rebate check at conclusion of cruise.

In the past, we were able to get discount on final price.

[sidari]

5 hours ago, phissy said:

FYI

Just chatting with our travel agent.

He told me that MSC no longer allows travel agents to discount cruises.

He is able to offer additional OBC or rebate check at conclusion of cruise.

In the past, we were able to get discount on final price.

Is that just a USA thing? 

[Georgia_Peaches]

I thought that the TA obc essentially was the discount…assuming the OBC is refundable. Are you saying that before now TA’s had the ability to discount cruise fares below the published cruise line price?  That’s new to me. 
 

Last year we received $825 in refundable OBC on an MSC Seashore booking in the YC. My TA’s list price was the same as MSC’s but with the refundable obc it essentially became $825 less. Is this scenario different from what your TA shared?  

[phissy]

Our TA had always discounted the final price we paid for cruise.

If we had an OBC, it was from MSC. Always non refundable.

we book YC on MSC and TA would discount our cabin around $1,500. for RS for 7 day.

 

Edited January 28, 2023 by phissy

[cublet]

10 hours ago, sidari said:

Is that just a USA thing? 

Hello,

 

That sounds a bit like 'Resale Price Maintenance' that was illegal (apart from books and medicines) but now subject to a 'Competition and Marketing Authority' investigation that's normally in secret but has heavy penalties if found not to be in the public interest.

 

Regards,

 

Cublet

[Georgia_Peaches]

8 hours ago, phissy said:

Our TA had always discounted the final price we paid for cruise.

If we had an OBC, it was from MSC. Always non refundable.

we book YC on MSC and TA would discount our cabin around $1,500. for RS for 7 day.

 

So my understanding is that TA’s get kickbacks from the cruise lines for each booking. A commission, so to speak. The TA can do a couple things with that, 1. Take some of that commission and give it to the customer in the form of OBC, 2. Take what they would have given in OBC and reduce the price of the cruise, or 3. Keep all the commission and do nothing for the customer. 
 

$1500 discount/OBC sounds about right for a RS in YC as the % offered is usually 8-10 % of cruise fare. So it sounds like what your TA may be saying (I’m guessing, of course) is that they are no longer passing a portion of their commission on to clients in the form of fare discounts. I would ask them if they will begin offering OBC instead. If the answer is No then you might want to shop around. 

[alyssamma]

2 hours ago, Georgia_Peaches said:

So my understanding is that TA’s get kickbacks from the cruise lines for each booking. A commission, so to speak. The TA can do a couple things with that, 1. Take some of that commission and give it to the customer in the form of OBC, 2. Take what they would have given in OBC and reduce the price of the cruise, or 3. Keep all the commission and do nothing for the customer. 
 

$1500 discount/OBC sounds about right for a RS in YC as the % offered is usually 8-10 % of cruise fare. So it sounds like what your TA may be saying (I’m guessing, of course) is that they are no longer passing a portion of their commission on to clients in the form of fare discounts. I would ask them if they will begin offering OBC instead. If the answer is No then you might want to shop around. 

This is the perfect and correct answer (for the US at least).

 

FYI, the TA I normally use does the above based on the cruise line. So for MSC, it is always OBC. But, for example, for HAL, they always do a discount.

[Morgsmom]

2 hours ago, Georgia_Peaches said:

So my understanding is that TA’s get kickbacks from the cruise lines for each booking. A commission, so to speak.

It's a commission, not a kickback.  

[perakcruiser]

17 hours ago, sidari said:

Is that just a USA thing? 

I think at least in Europe MSC (and the others) NEVER allowed TA to give discounts. Probably until now MSC just tolerated it in the US. Many of the Europeans cruise lines also don´t allow any other incentives for the customers like OBC. There are some loopholes, but a TA definitely is not allowed to offer a cruise cheaper than the cruise line. 

[Georgia_Peaches]

1 hour ago, Morgsmom said:

It's a commission, not a kickback.  

My apologies...no harm intended.

[Georgia_Peaches]

1 hour ago, alyssamma said:

This is the perfect and correct answer (for the US at least).

Except I accidentally used the word "kickback" which has a negative connotation.  Sorry. 🙃

[Shocked91]

20 hours ago, sidari said:

Is that just a USA thing? 

I booked an MSC cruise last month and my ta gave each person an extra £50 each off.

[mmbcater]

10 hours ago, Georgia_Peaches said:

So my understanding is that TA’s get kickbacks from the cruise lines for each booking. A commission, so to speak. The TA can do a couple things with that, 1. Take some of that commission and give it to the customer in the form of OBC, 2. Take what they would have given in OBC and reduce the price of the cruise, or 3. Keep all the commission and do nothing for the customer. 
 

$1500 discount/OBC sounds about right for a RS in YC as the % offered is usually 8-10 % of cruise fare. So it sounds like what your TA may be saying (I’m guessing, of course) is that they are no longer passing a portion of their commission on to clients in the form of fare discounts. I would ask them if they will begin offering OBC instead. If the answer is No then you might want to shop around. 

 

 

I don't think people understand how much time goes into one reservation. It's not a "kickback" its earned commission. If they are giving you OBC that is coming from their earned commission! While its a pretty common practice for travel agents to provide OBC it is not coming from the cruise line!! 

 

 

[Georgia_Peaches]

1 hour ago, mmbcater said:

 

 

I don't think people understand how much time goes into one reservation. It's not a "kickback" its earned commission. If they are giving you OBC that is coming from their earned commission! While its a pretty common practice for travel agents to provide OBC it is not coming from the cruise line!! 

 

 

I've already apologized for the use of the word "kickback"...If I implied that the OBC was coming from the cruise line, then my bad.  And I book on line so technically, I'm doing all the work...not to diminish my TA's efforts when I have a question or an issue, but I've done the work...not them.  I use an online TA...it may be different for more hands-on, brick and mortar folks.  My TA gets a commission from the cruise line, she then turns around and gives me a cut in the form of OBC. What have I gotten wrong?

Edited January 29, 2023 by Georgia_Peaches

[8420PR]

14 hours ago, perakcruiser said:

I think at least in Europe MSC (and the others) NEVER allowed TA to give discounts. Probably until now MSC just tolerated it in the US. Many of the Europeans cruise lines also don´t allow any other incentives for the customers like OBC. There are some loopholes, but a TA definitely is not allowed to offer a cruise cheaper than the cruise line. 

I often use a TA in the UK that gives 10% discount on MSC, and I know of another in Germany that also gives a discount from their commissions.  Both these TA's are online only and make their money by charging booking fees (and fees for any changes made).    But you are correct that offering OBC or discounts is certainly much less common in Europe than US - my only guess is that commissions are the main revenue for TA's in Europe, whereas in US either they are making their revenue from ancillaries (e.g. insurance) or the higher cruise revenue allows TA's to take a lower margin?

 

Here is an example contract with a travel agent from UK - there is no mention of price fixing:  https://www.mscbook.com/pages/sdl/img/B2B_TA_Example_MSC_Retail_Agent_Agreement.pdf

[Griff4AU]

I love Internet water cooler talk.  Not.  
 

There were a lot of posts here on CC in Nov & Dec in this forum where me and another person were strongly encouraging folks to book their MSC cruise before year end.  You didn’t have to sail before YE, just book it.  We didn’t state why because TA talk is discouraged here.  
 

The simple fact is that most cruise lines offer TA’s the same commission rate - it usually doesn’t vary much.  They are all within 2 percentage points of each other.  MSC was offering 10 extra points of commission late last year. That was huge.  And many / most TA’s (outside of the big box Internet ones) were offering some/much/most of that extra back to the traveler. An additional OBC is the way to get that back on / during the sailing as commissions are paid to the TA’s post sailing - although MSC pays they very quickly.  

[MsTabbyKats]

2 hours ago, Griff4AU said:

I love Internet water cooler talk.  Not.  
 

There were a lot of posts here on CC in Nov & Dec in this forum where me and another person were strongly encouraging folks to book their MSC cruise before year end.  You didn’t have to sail before YE, just book it.  We didn’t state why because TA talk is discouraged here.  
 

The simple fact is that most cruise lines offer TA’s the same commission rate - it usually doesn’t vary much.  They are all within 2 percentage points of each other.  MSC was offering 10 extra points of commission late last year. That was huge.  And many / most TA’s (outside of the big box Internet ones) were offering some/much/most of that extra back to the traveler. An additional OBC is the way to get that back on / during the sailing as commissions are paid to the TA’s post sailing - although MSC pays they very quickly.  

I recall that thread. 

 

At that time I had Fantastica balcony booked....booked by myself online.  I decided to cancel it (due to possible medical issues) in early Jan.  The next week I decided that YCI would be a perfect solution for the same cruise...no lines, butler etc...and the price was really good.  I asked a TA who I've used in the past, just to see if it was worth using him, what his price would be.  It was almost 14% less than a DIY booking.  So, he's obviously still having a good rapport with MSC!

[Avatar345]

Are these OBC credits on top of the 5% + 5% booking discount with MSC, or instead of it? I spoke to a TA yesterday that was able to give roughly ~7% back in OBC, but I wonder if the 5% + 5% early booking discount would negate/nullify that or whether they're both applicable?

[MsTabbyKats]

1 minute ago, Avatar345 said:

Are these OBC credits on top of the 5% + 5% booking discount with MSC, or instead of it? I spoke to a TA yesterday that was able to give roughly ~7% back in OBC, but I wonder if the 5% + 5% early booking discount would negate/nullify that or whether they're both applicable?

I'm Gold.  I got whatever discounts that entitled me to....and then "the almost 14%" discount on top of that.  No OBC involved.  This booking was less than 2 weeks ago.  Not allowed to post TA info....but he's a small independent agent.

[Georgia_Peaches]

5 hours ago, Avatar345 said:

Are these OBC credits on top of the 5% + 5% booking discount with MSC, or instead of it? I spoke to a TA yesterday that was able to give roughly ~7% back in OBC, but I wonder if the 5% + 5% early booking discount would negate/nullify that or whether they're both applicable?

Typically, OBC and incentives offered by a TA do not nullify those offered by the cruise line.  My TA offered $625 on an upcoming Celebrity cruise and the cruise line was offering $600 as well...so we get both.

[phissy]

My TA information may be the new policy  of MSC.

He said he can offer either OBC or Check at completion of cruise.

 

I also  do all the leg work ahead of booking a cruise.

I email him with all info and he completes the booking through his agency.

 

Depending when cruise is booked, 5+5 for Voyagers discount applies to MSC final fare.

TA then makes offer of “his” pricing for booking with him.

Recent offer made by our TA.

$600 OBC on top on MSC $200. OBC for YC booking. 

$800 OBC total. 
 

Edited January 29, 2023 by phissy

[Até]

Attached is MSC rebate policy and Q&A since 2020, I'm not sure if it has changed recently.  It pretty much limits to a max of 10% rebate and only as a "Value-add" - meaning something that could be purchased through MSC, e.g. OBC, gratuities or excursions....  MSC policy is no rebate checks or cash type discounting directly to customer.

 

 

B2B_TA_Rebate-Policy-rev-8OCT2020.pdf

[styles27]

Right it has to come from the TA not MSC

 

@phissy for the first time we just used a TA for our upcoming NCL cruise because of the “perks”. 

We are receiving “cash back” in the form or a check or prepaid Visa card (our choice) after we cruise plus a couple of other things. 

 I never saw that before however I never used a TA so there’s that lol

 

I wonder if this cash back thing is new?

 

 

Edited January 31, 2023 by styles27

[Avatar345]

29 minutes ago, Até said:

Attached is MSC rebate policy and Q&A since 2020, I'm not sure if it has changed recently.  It pretty much limits to a max of 10% rebate and only as a "Value-add" - meaning something that could be purchased through MSC, e.g. OBC, gratuities or excursions....  MSC policy is no rebate checks or cash type discounting directly to customer.

 

 

B2B_TA_Rebate-Policy-rev-8OCT2020.pdf 682.59 kB · 1 download

 

The OBC can be used towards gratuities on MSC though right?

[styles27]

9 minutes ago, Avatar345 said:

 

The OBC can be used towards gratuities on MSC though right?

Yes