Comparison shopping for OBC - right or wrong?

[Sky Sweet]

[quote name='Richiebaseball']


The ones that offer the large OBC's do it on volume. When someone is offered an OBC like the ones mentioned here, the agency profit is most likely in the $50-100 range for a cabin after the OBC. That's it. You can do the math on how many of those commissions it takes to make a living.



[/quote]

Hi Richiebaseball :)

If TA's who give large OBC's do so by keeping such a miniscule portion of their commission for themselves, I don't see how it is possible for a TA to give a large OBC, as well as good service. It is humanly impossible to spend very much time with a customer if you need that many to offset the low profit margin per booking.

Therefore, if I ever booked a cruise with a TA who gave a large OBC, I would not expect the same level of service that I would get from a TA who is very service oriented but doesn't save their customers a lot of money.

In my opinion, a TA can either save you a lot of money or give excellent service, but not both. The only exception would be a TA who does it for fun and doesn't care if the agency makes money.

[Karynanne]

[quote name='Sky Sweet']Hi Richiebaseball :)

If TA's who give large OBC's do so by keeping such a miniscule portion of their commission for themselves, I don't see how it is possible for a TA to give a large OBC, as well as good service. It is humanly impossible to spend very much time with a customer if you need that many to offset the low profit margin per booking.

Therefore, if I ever booked a cruise with a TA who gave a large OBC, I would not expect the same level of service that I would get from a TA who is very service oriented but doesn't save their customers a lot of money.

In my opinion, a TA can either save you a lot of money or give excellent service, but not both. The only exception would be a TA who does it for fun and doesn't care if the agency makes money.[/QUOTE]

Why couldn't a TA give good service and a large OBC? We have repeatedly used a TA that gives excellent service, AND a nice OBC. I don't see how one could negate the other?

[Bobblsc]

[quote name='Sky Sweet']Hi Bob :)
In your post quoted above you mentioned that you went to school in Columbia, MO. Was that Mizzou?[/quote]

Yes, I have two degrees from Mizzou, the first engineering and the second business. That's the Mizzou Tiger up there. If you went there, you know it was a great place to be. However, I must admit that as an undergraduate I also spent a great amount of time at Stephens and Christian (now Columbia) colleges. And my grades sometimes showed it. When I was an undergraduate there were about 10,000 men and 2000 women at Mizzou. But there were also a lot of good lookin' women at the two girls schools.

I had many beers at the Shack. Beetle Bailey was not really there, but Mort Walker was.

Missouri Girl, I went to Jeff City High, but had a lot of friends from the Catholic schools, some in my neighborhood and others from Boy Scout camps. I thought briefly, very briefly, about going to school at Rolla. Mizzou was more fun and much closer.

I am retired from the U. of A. I always root for the Razorbacks, except when they play Mizzou. Wasn't the Cotton Bowl great? We are probably too much off topic. It would be great to hear from you. My information is above.

Bob :cool:

[Leejnd4]

[quote name='Karynanne']Why couldn't a TA give good service and a large OBC? We have repeatedly used a TA that gives excellent service, AND a nice OBC. I don't see how one could negate the other?[/QUOTE]

Karynanne, one negates the other because by giving a large OBC, the TA is reducing their profit margin to the point where it doesn't make good business sense to spend a lot of time on the sale. It's just basic business - the more time you spend on it, the less money per hour you make on the deal. And if a TA is in the business to make money, it's very difficult to do so by giving away so much of your profit that you end up working for pennies per hour.

I don't think the point is that it "can't be done". The point is that if a TA does that, they're not going to make enough money to stay in business. But, as Sky Sweet pointed out, if making a profit is not a factor for TA, they certainly CAN do it. Also, like in any business, sometimes you have to take a loss on a deal in hopes of future profit-making deals.

But I would be leery of any TA who IS in the business to make a profit, but continally does deals that make them no money. The last thing you want is to have your TA go belly-up and keep your final payment, or some such thing!

When I shop around for a good OBC, I make a point of choosing TA's that state right up front that their business model is low overhead, great deals, less personal service. That seems less risky to me.

[FinelyCruising]

I'd be suprised if many here didn't get the 'business theory' behind those ideas if that's even anything close to a correct term, I think what's suprising is the idea that the judgement is made that it's an absolute either or.

When frequent cruisers bring business to the same TA, and as a result of excellent performance potentially more business is brought to that TA by the cruiser or referrals, then the idea that the serving TA would stiff that customer seems unlikely to me as well.

Again, some peole value other people and the relationships of mutual respect across the business lines and personal commitments. To some others the focus is solely on the mechanics of saving dollars.

Either way it is a personal preference.

[Leejnd4]

[quote name='FinelyCruising']I'd be suprised if many here didn't get the 'business theory' behind those ideas if that's even anything close to a correct term, I think what's suprising is the idea that the judgement is made that it's an absolute either or.

When frequent cruisers bring business to the same TA, and as a result of excellent performance potentially more business is brought to that TA by the cruiser or referrals, then the idea that the serving TA would stiff that customer seems unlikely to me as well.

Again, some peole value other people and the relationships of mutual respect across the business lines and personal commitments. To some others the focus is solely on the mechanics of saving dollars.

Either way it is a personal preference.[/QUOTE]

Finely, I don't disagree with you at all. And I'm sure most people in here understand the basic business concept. I was simply answering her question. The basic facts are that the bigger the OBC, the smaller the profit, the less time can be spent giving first-class service to the client in order to make money off the deal.

And you are right that we all must make a choice as to the type of TA we want to give our business to. For me, given that I really do not need much of anything from a relationship with a TA, it really does boil down to who will get me the best deal. But as I've said in this (and the other) thread, I also completely understand that other crusiers prefer to go the route of a more full-service, personal-relationship type of TA.

Just not me. :)

[Sow There]

Just a thought.

If your car needs brakes, do you take it to a shop that will replace the brakes with the right pads for your car and will also make sure that your brake fluid is fresh and at an adequate level?

Or do you go to Pep Boys and buy your own pads and a book on brake repairs and do it yourself to save a few bucks?

As for cruise travel, do you deal with a cruise agent who deals with all cruise lines every day and who is on a first name basis with the sales rep for, say, Celebrity Cruise Lines and who can call in a favor to make sure that you get the cabin you want and/or dates you want?

Or do you go to the web and try to find the best deal from all the various promoters out there who are only in it for the money?

I, personally, am all thumbs on mechanical stuff so there's no chance at all that I'll ever do my own brake job. I guess I could with a lot of reading and with a buddy who knows how to answer my questions, but leaving the job to a pro frees me up time wise to do other things in which I have an interest. Yes, it's also more expensive.

When I travel by air, I, personally, shop for my own air because the airlines no longer pay any commissions to T. A.'s and Travel Agents have no special access advantage or skill over my own skills. And in the final analysis I can do it just as fast as a TA can and with all my frequent flier points, I can probably do it for less cost.

However, when it comes to cruising, I let my travel agent do all the work because booking a cruise and the pre/post cruise hotels and other arrangements take a lot of time and there's no way I can get the personal service she can from the Sales Rep for the cruise line. More important to us is that she knows us and our interests and can, and usually does, come up with some very creative ideas.

And as was brought out elsewhere, when something goes wrong (such as the ship being over 12 hours late in disembarkation) my TA is in a much better position than I ever could be on board a ship with over a thousand others clamoring for alternate hotel/flight arrangements.

One call to an agent when something goes wrong and I'm done. Time for a martini and wait for the call back while all about me who made their own arrangements are trying to find a place to stay.

And, believe me, things really can go wrong. It's great having a quality Travel Agent [U]on my side[/U] who can help me deal with the hapless souls who work for the cruise lines, airlines and hotels who are assigned to handle the problem situstions.

Cruise travel, like a brake job, is not governed by price alone. And loyalty to a good cruise travel agent is worth a whole lot more to us than an OBC to pay for that martini.

Yes, she gives us an OBC and/or a free car service ride to/from our airport, but we always make sure she gets something worthwhile from us as well after we get back from a great cruise.

[Sky Sweet]

[quote name='Bobblsc']Yes, I have two degrees from Mizzou, the first engineering and the second business. That's the Mizzou Tiger up there. If you went there, you know it was a great place to be. However, I must admit that as an undergraduate I also spent a great amount of time at Stephens and Christian (now Columbia) colleges. And my grades sometimes showed it. When I was an undergraduate there were about 10,000 men and 2000 women at Mizzou. But there were also a lot of good lookin' women at the two girls schools.

I had many beers at the Shack. Beetle Bailey was not really there, but Mort Walker was.

Missouri Girl, I went to Jeff City High, but had a lot of friends from the Catholic schools, some in my neighborhood and others from Boy Scout camps. I thought briefly, very briefly, about going to school at Rolla. Mizzou was more fun and much closer.

I am retired from the U. of A. I always root for the Razorbacks, except when they play Mizzou. Wasn't the Cotton Bowl great? We are probably too much off topic. It would be great to hear from you. My information is above.

Bob :cool:[/quote]

Hi Bob :)

I know the Mizzou campus well because my brother has been a professor there since1983. It would have been a small world if my brother was one of your professors but based on your major, he probably wasn't.

[Leejnd4]

Sow There, those are all outstanding and valid reasons to go with a full-service relationship-oriented TA. In fact, based on your post, you are the perfect client for that type of TA. You acknowledge that you don't have the time or inclination to do all the research yourself, and you place value in the knowledge, education and relationships that a TA like that has, and would be able to leverage to create for you the vacation of your dreams. You recognize that you are paying a premium for making use of those valuable attributes and services, which is clearly worth it because you are going to end up with a planned trip designed by someone who has spent the time and effort learning your needs and desires. Further, you have the comfort of knowing that if anything goes wrong, you have that person there to be your advocate.

For me, however, the value truly isn't there. I've been doing my own vacation planning for so long that, at least in the planning phase, there is nothing that a TA can do for me that I wouldn't prefer to do myself. In fact, I couldn't possibly expect a TA to do anywhere near the type of detailed research that I do. ESPECIALLY when it comes to pre- or post-cruise stays. Example: right now I'm planning a week in Sardinia before my next Med cruise. I have already purchased two books on Sardinia, done massive amounts of research into the various regions, and chosen one based on what it offers (a combination of fabulous scuba diving, a highly-rated dive operation that offers cavern dive training, an off-but-not-TOO-far-off the beaten path location, proximity to the airport that is cheaper to fly into from Rome, boutique-style hotels with good ratings and references, etc.) I have probably spent at least 80 hours doing this research already - and that's JUST on my pre-cruise hotel! Any TA would have long ago blown their commission on my deal just doing that.

As for the cruise, I don't need a TA with a relationship with the Celebrity sales rep. By the time I'm ready to book, I already know exactly what cabin I want...down to the number. I've already found out which cabins have a slightly bigger balcony, which ones to avoid because they're right under the disco, etc. In most cases I've already booked my cabin through the cruise line direct, and all I need to do is switch my booking to get the OBC. So what can a TA offer me that I don't already have, or haven't already done myself?

However, as I mentioned earlier in this thread, one downside to my method of cruise shopping is if something goes wrong. YES things go wrong...and the risk I take by shopping for price is that I will end up having to deal with it myself, rather than being able to drop it all in my TA's lap and going to drink that martini. It's a risk, and I accept it. I'm very fortunate that to date, nothing has gone wrong that I couldn't quickly deal with myself. I should point out that even with the discount online TA's that I use, they don't just cut you loose if a problem arises - they are available to step in, although I grant you that it probably won't be nearly as stress-free a situation as you would experience with your full-service TA. In any case, it's gamble that I'm taking in order to save money...an educated gamble. Not everyone wants to gamble like that - and people who aren't comfortable with having deal with travel nightmares, or who've never been faced with one before, might not want to take it.

I hear ya about the brakes. Fortunately, I married a gear head. He wouldn't dream of letting someone else work on our brakes...or, if it is a job that needs to go to a shop, he knows EXACTLY what needs to be done, what part is needed, how much labor it will take, and how to tell if it's done right. He wouldn't dream of dropping it off at a car repair shop and just trusting a mechanic to do a good job.

But if I didn't have him, I'd be right where you are, having to rely on a full-service repair shop and praying they know what they are doing, are giving me proper advice, and are not ripping me off.

But hey, what do we gals get married for if it's not for lawn care and vehicle maintenance? ;)

As it turns out, my husband loves to travel, but wouldn't have a clue where to begin in terms of trip planning. I like to drive, but wouldn't have a clue what to do if something broke on my car. It's a match made in heaven! :D

[RosieRoo]

LeeAnne, I agree with you on all of the above. I obsessively research all my cruises, know what cabin I want, what ship, what date, etc.. Unfortunately unlike you I was loyal to a TA for years. I gave him 15 bookings of my own in the last 8 years and many of my family and friends. He has never given me an OBC or anything else for that matter. He has never gone to bat for me with the cruiselines either. Last year I booked air thru the cruiseline for my daughter's friend who was meeting us a day later in Miami. He neglected to tell me that the cruiselines does not assign seats. It was me who was on the phone scrambling from Miami to get her a seat assignment in Boston on the Saturday of school vacation week when there were 30 people on standby for her flight. Another time we paid for a suite and got no suite benefits. He couldn't have cared less. It was me who had to write to Princess and get compensated for all the amenities we were missing. Don't get me wrong we are not complainers. I love cruising and have never had a bad cruise but after reading these boards and learning from experienced cruisers like yourself, I have to ask myself "what am I paying this guy full commission for?" He doesn't have to work for my business, I give him the details and he books the cruise, no research, no work on his part. He has never rewarded my loyalty to him so why should I be loyal. Looks to me like I have been stupid. No more. I will book with the lowest price and take my chances. I have had to deal with any travel issues on my own anyway so I figure at least this way I will be saving money doing it! I am sure there are some great TA's out there that give their clients great service but I didn't get one of those. Thanks to everyone here at Cruise Critic for showing me the light.

[Sky Sweet]

[quote name='Leejnd4']Karynanne, one negates the other because by giving a large OBC, the TA is reducing their profit margin to the point where it doesn't make good business sense to spend a lot of time on the sale. It's just basic business - the more time you spend on it, the less money per hour you make on the deal. And if a TA is in the business to make money, it's very difficult to do so by giving away so much of your profit that you end up working for pennies per hour.

I don't think the point is that it "can't be done". The point is that if a TA does that, they're not going to make enough money to stay in business. But, as Sky Sweet pointed out, if making a profit is not a factor for TA, they certainly CAN do it. Also, like in any business, sometimes you have to take a loss on a deal in hopes of future profit-making deals.

But I would be leery of any TA who IS in the business to make a profit, but continally does deals that make them no money. The last thing you want is to have your TA go belly-up and keep your final payment, or some such thing!

When I shop around for a good OBC, I make a point of choosing TA's that state right up front that their business model is low overhead, great deals, less personal service. That seems less risky to me.[/quote]

Hi Leejnd :)

That is exactly the point I was trying to make. Based on the example that another poster gave of a $50 to $100 profit after giving a large OBC, that TA can barely afford to do the mechanics of the job and stay in business. Needless to say, there is only so much time a TA can devote to a customer when the profit per booking is that small, unless that TA doesn't need the money and is doing it for pure enjoyment.

At the same time, there is nothing wrong with using a "discount TA" who can save a person a lot of money, as long as that customer has realistic expectations.

On the other hand, a person who wants a lot of service from a TA is better off using one that makes enough profit per booking to spend a lot of time with each customer.

[Karynanne]

[quote name='Leejnd4']Karynanne, one negates the other because by giving a large OBC, the TA is reducing their profit margin to the point where it doesn't make good business sense to spend a lot of time on the sale. It's just basic business - the more time you spend on it, the less money per hour you make on the deal. And if a TA is in the business to make money, it's very difficult to do so by giving away so much of your profit that you end up working for pennies per hour.

I don't think the point is that it "can't be done". The point is that if a TA does that, they're not going to make enough money to stay in business. But, as Sky Sweet pointed out, if making a profit is not a factor for TA, they certainly CAN do it. Also, like in any business, sometimes you have to take a loss on a deal in hopes of future profit-making deals.

But I would be leery of any TA who IS in the business to make a profit, but continally does deals that make them no money. The last thing you want is to have your TA go belly-up and keep your final payment, or some such thing!

When I shop around for a good OBC, I make a point of choosing TA's that state right up front that their business model is low overhead, great deals, less personal service. That seems less risky to me.[/QUOTE]

I'm not buying your theory at all. The TA I use was referred to me by another cruising friend...and this friend has referred MANY people to this agency. We have a very large group of friends that cruise frequently, and we all use the same agency. What the owner and her staff provide is invaluable to us. She knows our cruising habits...knows the exact cabins we want...and knows what we're able to pay for those cabins. She calls when she sees a better cabin becomes available, calls to remind us that final payments are due (and a paid-in-full invoice will be emailed to us immediately), and keep us informed of any port changes.

Do we get hundred of $$ in OBC's? Not hundreds...but usually 100-200, based upon the number of days our cruise is.

Why are you so concerned that a TA would make a profit? Why would you be "leery" of doing business with that agency? A smart business owner can or should be making a profit, and be providing a service to their customer. And more importantly...retaining that customer for future sales.

I'm one that believes in building relationships with people. Both personal and professional.

[Leejnd4]

[quote name='Karynanne']I'm not buying your theory at all. [/Quote]

Hmmm...well, I'm not exactly sure what part of my theory you aren't buying. Would it be the part about how the more time spent on a deal the less money the TA makes? Can you please clarify what part you disagree with?

Please understand I'm just stating the most basic, simple business concepts - concepts that are pretty much common sense, and are based on simple arithmetic. There's really nothing to not "buy", or to disagree with.

Here, I'll elaborate, for simplicity. If a TA sells a cruise that costs, say, $4000, and he makes a commission of, say, $450 (I'm just throwing numbers out here, no basis in reality...just numbers). That $450 is the only money he's going to make on that deal. Now, if he gives away an OBC of, say, $250, that leaves him with a grand total of $200 profit on the deal. If he ends up spending 4 hours on all the work required for that sale, he made $50 an hour...not too shabby. He's not going to get rich, but if he sells enough of these (i.e. operating on VOLUME), he'll make enough profit to stay in business.

But if he had to spend a total of 20 hours, between researching different cruises, cabins, dates, hotels, talking to the client, talking to Celebrity, offering options, yadda yadda, then he did all that work for $10 an hour. I don't know about you, but I don't work for $10 an hour, and I don't think most TA's are going to be able to make a living working for $10 an hour either. Keep in mind that this is not a McJob - out of that $10 an hour the TA has to pay any overhead (telephone costs, office space, etc.), not to mention taxes. Consequently, if a TA tends to focus on FULL SERVICE rather than VOLUME, if he wants to make enough money he's going to have to give less of an OBC. (Unless, of course, he's perfectly happy operating at a loss...which most business people are not.)

This is not a subjective opinion. This is a basic business model. I run a small freelance business myself, so I am very well versed in these concepts. I can tell you that before I price a potential deal, I try to come up with a reasonably close estimate of how many hours I think the project will take, and quote a price that will make enough profit for the project to be worth doing. I'm not always perfectly accurate in my estimates, and I have done projects that ended up costing me money. But for the most part I'm pretty accurate, and I manage to keep my hourly rate consistent enough to keep money coming in to stay in business.

Now, please note that this is not a value judgement. Keep in mind I am NOT CRITICIZING full-service TA's, or the cruisers who use them. Nor am I saying that there ARE no full-service TA's who are willing to take a small profit AND give full service. Nor am I questioning how good your TA is - it certainly sounds like lots of you are happy, and that's great. But I can pretty much assure you that if we were to do an apples-to-apples comparison on a specific cruise, I would be getting a bigger OBC from my low-service discount TA than you would from your full-service TA.

How do I know that? Because if it wasn't true, then your full-service TA wouldn't be making enough money to stay in business.

[Quote]
Why are you so concerned that a TA would make a profit? Why would you be "leery" of doing business with that agency? A smart business owner can or should be making a profit, and be providing a service to their customer. And more importantly...retaining that customer for future sales.

I'm one that believes in building relationships with people. Both personal and professional.[/QUOTE]

I am concerned about my TA making a profit because I don't want to do business with a TA who doesn't. A TA who is not charging enough (or, to be more specific, is giving away too much if it's profit) is simply, based on simple arithmetic, not going to be able to stay in business. I would consider doing business with someone like that risky.

And it's not an uncommon scenario. Years ago I used to be a Telecommuncations Consultant, right around the time of divestiture (when AT&T split up). LOTS of small companies sprang up to jump in and sell phone equipment, now that it was legal to do so. It was a very competitive industry at the time, and lots of small companies tried to win business by undercutting the competition. Unfortunately, most of those companies went under because they JUST DIDN'T MAKE ENOUGH MONEY to stay in business.

If I'm going to use a full-service TA, I expect to pay more -- and I would happily do so. I wouldn't think of asking a full-service TA to give me the same OBC that I get from an online TA. It would be wrong of me to expect that. And I would not be comfortable doing business with someone who didn't understand the basic concepts of staying afloat in the business world.

Does this help?

Just one more thing. I think relationships are great. I have lots of 'em. But for ME (and that's just me), I really don't need a relationship with my TA. I need a cabin booked, and the best OBC I can find. And that's all I need. And we're all happy. :)

[FinelyCruising]

Lee Anne - Without being disrespectful to you, I am getting the feeling that you are making assumptions that are not based on fact, and that it seems you do not know for sure what TA's really do for their customers. In all your time shopping for the best deal you might have overlooked that discount agents do offer service, but you have not looked into that, and therefor think that they do not. I have a feeling you might be surprised to learn that some 'discount' agencies provide a very high level of service in addition to the discounts they offer in pricing for the fares and perks they offer to their client for booking with them.

Everyone wants to believe they have a better deal than the next guy, but as I said in an older thread when some of these ideas were batted around, pricing, credits and so on, it's the bottom line net of the combination of all the items vs the cruise line pricing when it comes to the economics, absent of service.

If at the end of the day the difference between what your bottom line is and my bottom line is about $100.oo, then a hundred is nice, but it's not so material that I'd swap out my TA for yours for the one cruise to agent hop.

[Leejnd4]

[quote name='FinelyCruising']Lee Anne - Without being disrespectful to you, I am getting the feeling that you are making assumptions that are not based on fact, and that it seems you do not know for sure what TA's really do for their customers. In all your time shopping for the best deal you might have overlooked that discount agents do offer service, but you have not looked into that, and therefor think that they do not. I have a feeling you might be surprised to learn that some 'discount' agencies provide a very high level of service in addition to the discounts they offer in pricing for the fares and perks they offer to their client for booking with them.

Everyone wants to believe they have a better deal than the next guy, but as I said in an older thread when some of these ideas were batted around, pricing, credits and so on, it's the bottom line net of the combination of all the items vs the cruise line pricing when it comes to the economics, absent of service.

If at the end of the day the difference between what your bottom line is and my bottom line is about $100.oo, then a hundred is nice, but it's not so material that I'd swap out my TA for yours for the one cruise to agent hop.[/QUOTE]

Finely, as usual, I am not disagreeing with you. In fact I mentioned in one of my missives above that the "discount" TA's DO offer service...especially in the event something goes wrong. And the concepts that I'm describing shouldn't be taken to the nth degree - in other words, I'm not saying that ALL full-service TA's are going to give WAY less in OBC, nor are ALL discount TA's going to offer very little service. There's lots of overlap, lots of grey areas, lots of different ways in which cruises are bought and sold. There [B]are [/B]opposite ends of the spectrum, though, and that's primarily what I've been referring to.

As I see it, the difference in service falls more in the planning stages. Most discount TA's really do not want to do all the work involved in researching cruises and presenting options. In fact, here's the verbiage straight off the website of one of the online TA's I use:

[QUOTE]**** is designed for the avid cruiser who knows the exact ship, date, and cabin type they want. Because of the unique **** method of doing business, we are able to offer some of the lowest prices and best value added in the industry. **** is 100% internet based. **** allows you to select the value added that best fits your needs.[/QUOTE]

So as you can see, they actually [B]require[/B] you to know exactly what you want before they'll even quote it to you. This means that they are less likely to end up with a client who will take up many hours of their time up front. But they DO offer all the service necessary AFTER the booking, and I've been quite happy with them.

And as I've said, my method of bargain shopping is not for everyone. But the reason I started this thread to begin with was that I was actually accused of being INSULTING to TA's by shopping for cruises as I do. I'm happy to say that based on the responses in this thread, not only am I NOT being insulting, I am not alone in how I cruise shop - lots of other cruisers do the same thing. :)

So, just to clarify...I DO think my assumptions ARE based in fact. I have used all different types of TA's, from the fullest service to the most discount, and I have been traveling and cruising long enough that I do believe I am a pretty educated travel consumer. And I appreciate you not being disrespectful to me...because I can't imagine why you would. ;)

[Jade13]

[quote name='Leejnd4']


So as you can see, they actually [B]require[/B] you to know exactly what you want before they'll even quote it to you. This means that they are less likely to end up with a client who will take up many hours of their time up front. But they DO offer all the service necessary AFTER the booking, and I've been quite happy with them.[/quote]

I agree with you. The discount TA I use sometimes (sometimes I book direct) works like this and expects me to do the work and come to them with the cruise I want priced. However, once booked, they offer a good level of service, have a resolutions department and always call me back same day and have gone to bat for me over a recent issue on getting me OBC over a fuel surcharge issue. They work on volume.

[Leejnd4]

[quote name='Jade13']I agree with you. The discount TA I use sometimes (sometimes I book direct) works like this and expects me to do the work and come to them with the cruise I want priced. However, once booked, they offer a good level of service, have a resolutions department and always call me back same day and have gone to bat for me over a recent issue on getting me OBC over a fuel surcharge issue. They work on volume.[/QUOTE]

Yes, that's it...you hit the nail on the head. The difference in service is really more in the planning phases, which I don't want anyway. I'd rather have the OBC.

[Dale]

[quote name='Leejnd4']Please understand I'm just stating the most basic, simple business concepts - concepts that are pretty much common sense, and are based on simple arithmetic. There's really nothing to not "buy", or to disagree with.

Here, I'll elaborate, for simplicity. If a TA sells a cruise that costs, say, $4000, and he makes a commission of, say, $450 (I'm just throwing numbers out here, no basis in reality...just numbers). That $450 is the only money he's going to make on that deal. Now, if he gives away an OBC of, say, $250, that leaves him with a grand total of $200 profit on the deal. If he ends up spending 4 hours on all the work required for that sale, he made $50 an hour...not too shabby. He's not going to get rich, but if he sells enough of these (i.e. operating on VOLUME), he'll make enough profit to stay in business.[/QUOTE]
I’ll only comment on this part of your post.
Using your figures, the $200 you call profit is misleading. You seem to forget a little thing called overhead. I won’t play with the numbers as you did, but you must consider a number of expenses that are involved in operating a business. A few would be rent, electricity, phone, taxes, licenses, membership in travel organizations, etc. These are just a few expenses incurred. I’m not a travel agent but if I were and the only way to get your business was to buy it from you from my profits I would have to do without your business.