Travel Agent Commission

[sabrefan]

Just curious if anyone knows the commission benefit package a travel agent receives from Viking?

[oskidunker]

My guess is its on volume . Less than 10% without volume. Again a guess. 

[CDNPolar]

We mistakenly a few years ago were copied on the TA Commission invoice - direct from Viking.  

 

It was not the TA that messed up, it was sent to the TA and copied to us from Viking directly.

 

Here is the breakdown:

 

16% on Cruise Fare

5% on Air

5% on Silver Spirits

 

In total for this cruise, that had a cost to us of $12,366.00 Viking paid the TA $1,718.08

 

 

Edited April 24, 2023 by CDNPolar

[Selion]

14 hours ago, sabrefan said:

Just curious if anyone knows the commission benefit package a travel agent receives from Viking?

Are you thinking about asking your TA for OBCs?  TA OBC offers are limited by Viking depending on the length of the cruise.  @Clay Clayton has the details.

[DrKoob]

5 hours ago, CDNPolar said:

We mistakenly a few years ago were copied on the TA Commission invoice - direct from Viking.  

 

It was not the TA that messed up, it was sent to the TA and copied to us from Viking directly.

 

Here is the breakdown:

 

16% on Cruise Fare

5% on Air

5% on Silver Spirits

 

In total for this cruise, that had a cost to us of $12,366.00 Viking paid the TA $1,718.08

 

 

And it didn't cost you a cent. If you had booked this directly, your fare would have been exactly the same. Not a penny, more or less. If it was, your TA was adding the money in on their own. But it would not have shown up on that Agent copy you got. And don't think your TA got that entire amount. If they don't own their agency, the franchisee or owner got a huge part of that. Usually the majority of it.

[MikeyB]

20 minutes ago, DrKoob said:

And it didn't cost you a cent. If you had booked this directly, your fare would have been exactly the same. Not a penny, more or less. If it was, your TA was adding the money in on their own. But it would not have shown up on that Agent copy you got. And don't think your TA got that entire amount. If they don't own their agency, the franchisee or owner got a huge part of that. Usually the majority of it.

There he goes again.

[sabrefan]

Thank you all for the feedback. I don’t have any intention of asking my TA for OBC. I just find this very interesting information. This information of course could be useful in looking at other options. Besides it would more acceptable to me to be offered OBC without having to ask for it, especially since we have booked at least 15 cruises in the past and not all were on Viking.

[CurlerRob]

6 hours ago, CDNPolar said:

We mistakenly a few years ago were copied on the TA Commission invoice - direct from Viking.  

 

It was not the TA that messed up, it was sent to the TA and copied to us from Viking directly.

 

Here is the breakdown:

 

16% on Cruise Fare

5% on Air

5% on Silver Spirits

 

In total for this cruise, that had a cost to us of $12,366.00 Viking paid the TA $1,718.08

 

 

 

Interesting data point, thanks for posting it.

 

I find that quite a modest markup, compared to other forms of "general contracting" or "agent" work. Given that we pay the same price whether we book direct or not, it does suggest that finding a good TA to represent us is time well spent. 🍺🥌

[CDNPolar]

I don't think that anyone is saying - especially me - that this is too much or too little.  I have no knowledge of the fees in the travel industry.  All I know is that after gaining this information the next Viking cruise we asked if there was any benefit financially for booking direct and they said NO.  We did not disclose that we had this information, we were just asking.

 

We recently used a TA associated with a major retail chain and we got a shopping card for $1,500.00 and will receive a further year end rebate for a similar priced cruise.  This TA does not represent Viking because they were giving too much away so Viking stopped working with them.

 

The TA that got this - whether it went to the TA directly or to the company - gave us nothing.  No OBC, nothing.  

 

We now just shop for what a TA will offer us and if we cannot find some value, then we are fully capable of booking and managing the trip on our own.  In fact, most of the time a TA adds an unnecessary layer to our bookings, so unless there is financial benefit, we book solo.

[DrKoob]

3 hours ago, MikeyB said:

There he goes again.

Excuse me? Do we know each other? Have I done something to offend you in the past? Do I need to report this as an insult? Not sure what you mean by this.

[DrKoob]

2 hours ago, sabrefan said:

Thank you all for the feedback. I don’t have any intention of asking my TA for OBC. I just find this very interesting information. This information of course could be useful in looking at other options. Besides it would more acceptable to me to be offered OBC without having to ask for it, especially since we have booked at least 15 cruises in the past and not all were on Viking.

Something to keep in mind about booking with other cruise lines: not a single other cruise line pays commission as Viking does. I can't think of one other that pays commission on everything, even at a different rate. Most only pay on the cruise itself. So don't think your TA has made that much on other bookings. TAs love Viking because they pay on everything. Many of the other lines have a bunch of charges called NCF (Non-commissionable fees), and they can really be high numbers. 

Booking a Viking cruise, your TA can make some decent money, but (for instance) a TA can book a Carnival cruise and make $50. It depends on the cruise line's policies.

[DrKoob]

2 hours ago, CurlerRob said:

 

Interesting data point, thanks for posting it.

 

I find that quite a modest markup, compared to other forms of "general contracting" or "agent" work. Given that we pay the same price whether we book direct or not, it does suggest that finding a good TA to represent us is time well spent. 🍺🥌

It's not a "markup" because you can't get a lower price from the cruise line. They pay the commission to the TA and then they don't have to deal with a customer who may or may not have a clue as to what questions to ask. 

[longterm]

2 hours ago, CDNPolar said:

We now just shop for what a TA will offer us and if we cannot find some value, then we are fully capable of booking and managing the trip on our own.  In fact, most of the time a TA adds an unnecessary layer to our bookings, so unless there is financial benefit, we book solo.

I'm with you; we book our own Viking cruises, then I transfer it to our TA for the OBC and very little else. I have a travel insurance company that I prefer, so I do that myself as well.

 

On an upcoming safari trip to Africa however, we will use the same excellent company we've used twice in the past (Great Safaris), because these trips are much more complex than anything I would want to take on myself, considering we will be hopping from place to place on small planes, going into some rather remote areas. 

But for a cruise or a European trip? Pretty easy to navigate IMO.

[dd57]

2 hours ago, CDNPolar said:

I don't think that anyone is saying - especially me - that this is too much or too little.  I have no knowledge of the fees in the travel industry.  All I know is that after gaining this information the next Viking cruise we asked if there was any benefit financially for booking direct and they said NO.  We did not disclose that we had this information, we were just asking.

 

We recently used a TA associated with a major retail chain and we got a shopping card for $1,500.00 and will receive a further year end rebate for a similar priced cruise.  This TA does not represent Viking because they were giving too much away so Viking stopped working with them.

 

The TA that got this - whether it went to the TA directly or to the company - gave us nothing.  No OBC, nothing.  

 

We now just shop for what a TA will offer us and if we cannot find some value, then we are fully capable of booking and managing the trip on our own.  In fact, most of the time a TA adds an unnecessary layer to our bookings, so unless there is financial benefit, we book solo.

You still might want to find a TA that does give OBC.  We book directly with Viking, then let our TA take over the booking.  We automatically get the TA's agency's OBC.  Then we have someone in our corner when we need interference run, which has happened a couple of times.

Edited April 24, 2023 by dd57

[CDNPolar]

1 minute ago, dd57 said:

You still might want to find a TA that does give OBC.  We book directly with Viking, then let our TA take over the booking.  We automatically get the TA's agency's OBC.  Then we have someone in our corner when we need interference run, which has happened a couple of times in getting Air Plus fees returned.

Agree - we have done this.  In Canada however it is difficult to find a TA that gives monetary value back.  There are a few, but I question with the amount they give, if it is worth the extra layer.

[CDNPolar]

4 minutes ago, longterm said:

I'm with you; we book our own Viking cruises, then I transfer it to our TA for the OBC and very little else. I have a travel insurance company that I prefer, so I do that myself as well.

 

On an upcoming safari trip to Africa however, we will use the same excellent company we've used twice in the past (Great Safaris), because these trips are much more complex than anything I would want to take on myself, considering we will be hopping from place to place on small planes, going into some rather remote areas. 

But for a cruise or a European trip? Pretty easy to navigate IMO.

 

We are also looking at an African Safari and will definitely book through a tour group or TA for this.  This has too many unknowns.

[CurlerRob]

31 minutes ago, DrKoob said:

It's not a "markup" because you can't get a lower price from the cruise line. They pay the commission to the TA and then they don't have to deal with a customer who may or may not have a clue as to what questions to ask. 

Semantics, but if commission suits you, OK. My point was that the cost to pax for someone to run interference for them was a smaller percentage of the total than with other forms of "agency". 🍺🥌

[Cienfuegos]

A good travel agent can be worth their weight in gold when things go bad.

 

In fairness, when you book directly with Viking, Viking has a sales agent who gets paid for their involvement in the case. It's not like you are selecting from a computer menu with no human on the other side.

 

 

[formernuke]

FYI: You can now book standard cruises online without talking to an agent.

[longterm]

3 hours ago, CDNPolar said:

 

We are also looking at an African Safari and will definitely book through a tour group or TA for this.  This has too many unknowns.

I've had really great success with the company I used; this will be our 3rd booking with them, and given all the bits and pieces that go into one of these trips, we've been extremely impressed with them all along the way. 

 

First 2 trips were to Zimbabwe and South Africa, including Cape Town; this next one will be up in Kenya, Tanzania, and Uganda.

[Omax4]

7 hours ago, DrKoob said:

Something to keep in mind about booking with other cruise lines: not a single other cruise line pays commission as Viking does. I can't think of one other that pays commission on everything, even at a different rate. Most only pay on the cruise itself. So don't think your TA has made that much on other bookings. TAs love Viking because they pay on everything. Many of the other lines have a bunch of charges called NCF (Non-commissionable fees), and they can really be high numbers. 

Booking a Viking cruise, your TA can make some decent money, but (for instance) a TA can book a Carnival cruise and make $50. It depends on the cruise line's policies.

I am a travel agent and this is complete nonsense. TA’s don’t love Viking any more or less than any other cruise lines. As a matter of fact my agency finds them a little difficult to deal with.

 

Of course we would rather have clients book Viking then Carnival because yes the commission is much higher because the prices are higher. Most of the money we make is on the cruise. We aren’t making that much on air or anything else from Viking.

 

[Omax4]

8 hours ago, DrKoob said:

It's not a "markup" because you can't get a lower price from the cruise line. They pay the commission to the TA and then they don't have to deal with a customer who may or may not have a clue as to what questions to ask. 

Completely agree with this. Most of the time a good TA can be very valuable.

[DrKoob]

36 minutes ago, Omax4 said:

I am a travel agent and this is complete nonsense. TA’s don’t love Viking any more or less than any other cruise lines. As a matter of fact my agency finds them a little difficult to deal with.

 

Of course we would rather have clients book Viking then Carnival because yes the commission is much higher because the prices are higher. Most of the money we make is on the cruise. We aren’t making that much on air or anything else from Viking.

 

Identifying yourself as a TA on Cruise Critic can get you banned. Better be careful. I only mentioned this because my TA says she makes more booking Viking on one cruise than she does on multiple cruises on most other lines. And she finds Viking very easy to deal with. They always answer their phones. No waiting on hold for hours and hours...or so she says.

[Omax4]

18 minutes ago, DrKoob said:

Identifying yourself as a TA on Cruise Critic can get you banned. Better be careful. I only mentioned this because my TA says she makes more booking Viking on one cruise than she does on multiple cruises on most other lines. And she finds Viking very easy to deal with. They always answer their phones. No waiting on hold for hours and hours...or so she says.

‘I’m not posting my agency information or recruiting business. That is what gets you banned. Not worried at all.

 

This is copied from the Forum Guidelines so you don’t worry about me.

 

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Yes they do answer the phones quickly. And they don’t outsource their call center overseas which is a huge plus. But there are other things that make them difficult. And again the only thing that makes your TA make more in one cruise than multiple others is because of the price. Not knocking their prices. They are a premium cruise line. It’s a good product. 

Edited April 25, 2023 by Omax4