Travel Agency Commissions?

[Leejnd4]

After reading this thread.I'm come to the conclusion that travel agents earn their keep.The gall of some people.It a little wonder that some TA's feel the need to charge cancellation or transfer fee.Ii'm sure some will transfer over a dollar .Pity,Pity

 

I find it a little bizarre to say that it is a "gall" and a "pity" that some of us shop for cruises based on price, not service. I am completely stymied as to why some people seem to be having a problem with this basic concept of a free marketplace.

 

I do not criticize people who shop based on service. Why should I be criticized because I shop for price?

 

Why shouldn't I pay less for my deal, when I need less?

 

Yes, travel agents DO earn their keep. I have never questioned that. I do not need a travel agent to earn their keep with me. I just need 'em to book the room. Why should I pay the same price as someone who needs all that extra work?

 

I'm truly stunned that this concept is causing such heated divisiveness. I'm not trying to put anyone out of business. I'm giving them a sale. Why should I be vilified for that?

[Karynanne]

I don't think anyone has a problem with one shopping for prices...but asking for a discount can be perceived as being rude. I'm not saying YOUR rude...but it could be perceived this way.

 

It really boils down to what each individual values in a product. Do they value service...or do they value discounts?

 

I view OBC (other than shareholder credits) as a valued gift from my TA. It's not expected, nor do I feel I'm entitled to it. But our TA usually is very generous. I wouldn't dream of asking them what their bottom-line costs are. The TA has a for profit agency, and SHOULD make a profit. And yes, I usually do find my own particular cruise...but the most important value that the TA offers is my choice of cabins. That alone is of HUGE value to us.

[Leejnd4]

I don't think anyone has a problem with one shopping for prices...but asking for a discount can be perceived as being rude. I'm not saying YOUR rude...but it could be perceived this way.

 

It really boils down to what each individual values in a product. Do they value service...or do they value discounts?

 

I view OBC (other than shareholder credits) as a valued gift from my TA. It's not expected, nor do I feel I'm entitled to it. But our TA usually is very generous. I wouldn't dream of asking them what their bottom-line costs are. The TA has a for profit agency, and SHOULD make a profit. And yes, I usually do find my own particular cruise...but the most important value that the TA offers is my choice of cabins. That alone is of HUGE value to us.

 

Here's a thought. In some parts of the world, bargaining is not only NOT considered rude...it's considered rude NOT to bargain! If you've ever shopped in Turkey, or Morocco or Bali or many other places where they have large marketplaces, you are fully expected to bargain for virtually everything you buy - and if you don't, the vendor will actually be offended. That may not be the norm in the US for consumer goods, but it's not uncommon for big ticket items. A car is a good example - few people pay "sticker price", and it's not considered rude to make a low-ball offer...and then you and the salesperson dicker until you settle somewhere in the middle. There are many other big-ticket items I can offer as similar examples: houses, boats, etc. etc.

 

I do recognize the value of service, and have said so numerous times in these threads. I do not need that service, and do not wish to pay for it. And if that makes me rude, so be it - I give up. :rolleyes:

 

The strange thing is, there are plenty of TA's out there who WANT my business - and want it the way I want to do it! One online TA even states as much in detail on their webpage - they want "avid cruisers" who know exactly what they want - and they promise the best deal. So if my way of cruise shopping is rude, why are there TA's who are asking for it?

[jfrenaye]

I will offer my 2 cents here as well.

 

When you question the commission you may indeed be asking for income. There are many home based single agency businesses out there and yes, commissions are the sole source of income.

 

Leanne--what is your per word rate for your freelancing? Do you do repeat work with different clients? Have you ever pitched a piece to a client and then had the client take the piece and shop it around for someone that will do it for less? When you submit a proposal, do your clients routinely ask for a discount or a present? Do they inquire as to how much your overhead is so they can make sure they are not paying retail?

 

See, you are the client that I will deal with once. Just as you say you know the business so well, I know clients so well and to be honest, I don;t want to do business with the shopper and the tire kicker. Really, they have zero loyalty, so where is my incentive to go above and beyond? I can quote a competitive price. I may have some amenities that I can throw in because of my relationship with the cruise line. I may even try to discount it a little bit if I think your business is worth it. But when I sense that you will throw awaya ll of the hard work I have done on your behalf because the next agent tossed in a coupon to Arbys, I am sorry no thank you.

 

I need some writing done...I know your rate is 25 cents a word, but because I know the writing business, I am willing to give you a nickel. Do we have a deal? Oh, but you know what, the deal is only good till someone else comes along and wants to do it for 4 cents.

[Leejnd4]

There is a key element that you are missing in your understanding of my point. I’ll try to explain. You said:

 

I don;t want to do business with the shopper and the tire kicker. Really, they have zero loyalty, so where is my incentive to go above and beyond? I can quote a competitive price. I may have some amenities that I can throw in because of my relationship with the cruise line. I may even try to discount it a little bit if I think your business is worth it. But when I sense that you will throw away a ll of the hard work I have done on your behalf because the next agent tossed in a coupon to Arbys, I am sorry no thank you.

 

Note the portion in bold. I’ll say this again: YOU WON’T BE DOING ANY HARD WORK! I will have done all the “hard work” myself. You won't be going above and beyond. All you’re going to do is book the cabin. THAT’S IT! And you are right – there is no loyalty. When it comes to cruise shopping, I am shopping on price. I don’t need your work, your service, your expertise, your flowers or wine or coupons to Arby’s. I need your booking…and the best deal you can offer me.

 

What on earth is wrong with that? Why is this concept causing so much trouble for people?

 

And seriously, I'm not offended if a TA would rather not do business with me. There are lots of TA's who will...and who will skip all the way to the bank with the commission they made on the easiest sale they made today. :)

 

Oh, and yes, I have plenty of repeat clients, and plenty of clients who bargain for a better deal. But my type of business is VERY different from selling cruises. I'm selling a talent and skill, and a creative process. A cruise, on the other hand, is a commodity.

[FinelyCruising]

I am going to stick my nose in this again and say...by going from one agent to another for a few bucks, you have no way of knowing at all what the best price is overall. The mission is to get that what...$100.... OBC no matter what.

 

There seems some miss here in understanding that agents can offer a reduction of $100 per person off the fare of a frequent cruiser and not give an OBC, and by fixing the focus on the OBC you have no idea if the 'best deal' was made if that's what you think by virtue of getting the OBC.

 

As an FYI, some of the larger amounts that have been mentioned as credits are for the much more expensive suites, not the regular cabins, and on longer cruises and at suite rates, and based on the number of occupants in the suite, while the larger amounts sound amazing, it's all relative to the price paid for the fares.

[Jade13]

in some states splitting a commission is illegal as its a form of bribery.

 

Which States?

[Jade13]

After reading this thread.I'm come to the conclusion that travel agents earn their keep.The gall of some people.It a little wonder that some TA's feel the need to charge cancellation or transfer fee.Ii'm sure some will transfer over a dollar .Pity,Pity

 

I transfered a cruise and saved $1,600.00, as well as a free excursion worth $125.00pp (full day with lunch) plus onboard reception and travel host. Why should I leave this directly with the cruise line? Besides, HAL's consultant told me they still make their small commission if it is a transfer. I either stick direct with the cruiseline or deal with one specific "online" agent. They will not charge a cancelation fee if another cruise is booked with them (cancel one and book another). I do agree it's not in my best interest to deal with multiple agencys.

[Leejnd4]

I am going to stick my nose in this again and say...by going from one agent to another for a few bucks, you have no way of knowing at all what the best price is overall. The mission is to get that what...$100.... OBC no matter what.

 

There seems some miss here in understanding that agents can offer a reduction of $100 per person off the fare of a frequent cruiser and not give an OBC, and by fixing the focus on the OBC you have no idea if the 'best deal' was made if that's what you think by virtue of getting the OBC.

 

As an FYI, some of the larger amounts that have been mentioned as credits are for the much more expensive suites, not the regular cabins, and on longer cruises and at suite rates, and based on the number of occupants in the suite, while the larger amounts sound amazing, it's all relative to the price paid for the fares.

 

Finely, you are welcome to stick your nose into any conversation. :) Just to clarify, I do know that there are varying means of discounting cruises. I hope that all of my posts on this topic have made it clear that I really do do my homework. We've been focusing on OBC's in this thread because...well...that's what the conversation has been about, which is, asking for OBC's! But I'm happy to take any discount I can get, and I try to do enough research before I ever even talk to a TA that I already have a good idea what the discount options are.

 

And then I will ask for them. :)

[FinelyCruising]

Lee Anne are you the only cruiser on the planet that when booking with a TA...any TA, you are never given a price lower than the published web fare from the cruise line??? I don't believe that to be the case for one minute.

[bobbyleduck]

I wonder if any of you who keep complaining about what LeeAnne has said has ever watched the movie "You've Got Mail"? You know, where the big bad chain, "Fox Books," moves into the neighborhood and causes the demise of all the little bookstores. Everybody is incensed because "Fox Books" discounts. Now the little bookstores offer service, but their service isn't enough to keep people paying more for the product they can get "just around the corner" for less money. In the end those who can't compete go out of business and the world moves on.

 

Well, in the world of Travel Agents, some of the cruiselines have actually gone to bat for the "service" agencies in the fight with the big bad discounters, by limiting what the discounters can do. They (the Celebrities of the world) won't allow up-front discounting, because if they did then nearly everyone would flock to the discounters and all of the brick and mortar, service intensive agents would be thrown out on the street, just like our heroine in You've Got Mail."

 

Of course, this never happened when the airlines quit paying commissions. The little agencies started charging fees on airline tickets and then went out of business when all of the discounters came along. Why, because many of us don't need the services of a full-service travel agency to book airline reservations, just the same way many of us don't need the services of a full-service agency to book a cruise or hotel reservations, or rental cars.

 

If you have people who are willing to pay more for your service, please be glad, but don't attack those of us who for whatever reason don't feel the need to avail ourselves of your services.

 

Happy cruising to all who still can afford to cruise!

 

Bob

[Leejnd4]

Lee Anne are you the only cruiser on the planet that when booking with a TA...any TA, you are never given a price lower than the published web fare from the cruise line??? I don't believe that to be the case for one minute.

Did I say that? I don't think I did...where did this come up? And what is the relevance? Sorry, I'm not following you.

[Leejnd4]

If you have people who are willing to pay more for your service, please be glad, but don't attack those of us who for whatever reason don't feel the need to avail ourselves of your services.

 

THANK YOU!!!!! It's so nice to see someone posting in here who understands my points. :D

 

Oh, and while everyone thought that Joe Fox was such a horrible guy for putting the poor little store out of business...notice who ended up with the girl! ;)

[FinelyCruising]

I

 

 

 

Of course, this never happened when the airlines quit paying commissions. The little agencies started charging fees on airline tickets and then went out of business when all of the discounters came along. Why, because many of us don't need the services of a full-service travel agency to book airline reservations, just the same way many of us don't need the services of a full-service agency to book a cruise or hotel reservations, or rental cars.

 

 

 

Bob

 

Baloney with that story on the airlines!!! Airlines were going broke then and they still are and they ain't payin' no stinkin' commissions!!!

 

The internet changed that world to benefit the buyer and eliminate the middle man. I'd hate to have been an agent wasting hours and hours with people who have no idea how to make up their minds with flights. Still can't as far as I can tell! Check this for me, no check that one for me. How about if we do this, or if we do that, would that save me any money. No quantification of how much money, just check this and that and see....and the good guy sat there for hours and hours and did their job and had to have been losing their minds.

 

That would have to be like a lady going to the make-up department of a department store asking the sales girl for a red lipstick, probably the lowest price sale there is in that food chain and ho much time to take as a sales rep and focus on that! Guess what happened, they made counters for people to pick it out themselves and stop wasting others time!

 

Should we be asking the airlines for a gift....how about the person who rings up the lipstick?

[FinelyCruising]

Did I say that? I don't think I did...where did this come up? And what is the relevance? Sorry, I'm not following you.

 

Do you get pricing less than the web published fares when you speak with a TA...any TA? It sounds as though you feel you are forced to ask and fight for something that we all get quite simply when we ask for a quote from a TA.

[LML]

There is a key element that you are missing in your understanding of my point. I’ll try to explain. You said:

 

 

 

Note the portion in bold. I’ll say this again: YOU WON’T BE DOING ANY HARD WORK! I will have done all the “hard work” myself. You won't be going above and beyond. All you’re going to do is book the cabin. THAT’S IT! And you are right – there is no loyalty. When it comes to cruise shopping, I am shopping on price. I don’t need your work, your service, your expertise, your flowers or wine or coupons to Arby’s. I need your booking…and the best deal you can offer me.

 

What on earth is wrong with that? Why is this concept causing so much trouble for people?

 

And seriously, I'm not offended if a TA would rather not do business with me. There are lots of TA's who will...and who will skip all the way to the bank with the commission they made on the easiest sale they made today. :)

 

Oh, and yes, I have plenty of repeat clients, and plenty of clients who bargain for a better deal. But my type of business is VERY different from selling cruises. I'm selling a talent and skill, and a creative process. A cruise, on the other hand, is a commodity.

 

This makes so much sense to me that I'm going to try to use this!!!! I have a medical problem, and I've done hours of research all on my own. I know exactly what's wrong with me, and I know exactly the medication I need. I just need the doctor to write a prescription. He doesn't have to give me any service at all, I've done ALL THE WORK MYSELF. I'll for sure ask him how much money he is earning on my appointment, then because I've done all the work myself, and all he has to do is write the prescription, I will ask and expect him to give me a discount. I'm sure he won't be offended at all, because he doesn't have to do anything except write the prescription. And I know he won't mind telling me how much money he is making.

[chessbriar]

If you have people who are willing to pay more for your service, please be glad, but don't attack those of us who for whatever reason don't feel the need to avail ourselves of your services.

 

Just a thought, when you go to buy a car, do you ask the salesman how much commission he gets? Then do you ask for 1/2 of his commission?

 

The cruise lines sets the price much in the same way a dealership does. The salesman or TA only makes a commission on what they are selling. So when you ask for OBC or a gift of some sort you are taking money out of the pocket of the hard working TA.

 

If the Car/Cruise isn't selling the dealer or cruiseline lowers the price.

 

Would you dare walk into a Best Buy ask what they paid for a TV then tell them you'll only give them 1/2 the profit they have set their margins to make.

 

Think about this, rather than trying to take money out of the pocket of the TA, ask X for a lower price. The rate they pay their customer service is less than what a TA gets for commission. So they actually make more money when you book direct. Tell them you want a lower price or OBC. After all, they are setting the price. This way you are only taking money out of the pocket of the cruise line.

 

How would you feel if someone came to you and said, I don't feel you are worth what I am paying you, so I'm only going to give you 1/2. That's essentially what you are saying when you request OBC or a gift. You may not mean it that way, but if you are only calling so you can take away some of the money they make, how would you feel if you were on the other end.

 

If you are savy enough and don't need a TA, don't look to take advantage of them. Build a repore and they will do what they can to help you to save money and have a great trip.

[Leejnd4]

This makes so much sense to me that I'm going to try to use this!!!! I have a medical problem, and I've done hours of research all on my own. I know exactly what's wrong with me, and I know exactly the medication I need. I just need the doctor to write a prescription. He doesn't have to give me any service at all, I've done ALL THE WORK MYSELF. I'll for sure ask him how much money he is earning on my appointment, then because I've done all the work myself, and all he has to do is write the prescription, I will ask and expect him to give me a discount. I'm sure he won't be offended at all, because he doesn't have to do anything except write the prescription. And I know he won't mind telling me how much money he is making.

 

I do hope you see how bizarre, wrong, and invalid this is.

 

Buying a cruise is not a life or death decision. It does not require years of training, or advanced specialized knowledge, and will not impact one's health, wellbeing or ability to LIVE. It's a cruise, for pete's sake. It's a room on a ship. Seriously.

 

I truly feel bad for people who think buying a cruise requires such specialized skills and knowledge that you wouldn't trust yourself to do it, and would be as worried about making a mistake with it as you would with your life and health.

 

This is getting kinda...weird, frankly!

[FinelyCruising]

No it's not. If someone has acne, how hard would it be to get a scrip?

[Leejnd4]

Just a thought, when you go to buy a car, do you ask the salesman how much commission he gets? Then do you ask for 1/2 of his commission? [/Quote]

 

I don’t have to ask. My husband and I have already done the research and know what the base price of the car is. Same as a cruise. And yes, we ask for a discount. We've never paid sticker price for a car.

 

The cruise lines sets the price much in the same way a dealership does. The salesman or TA only makes a commission on what they are selling. So when you ask for OBC or a gift of some sort you are taking money out of the pocket of the hard working TA.

 

I am asking for a discount. I deserve it because, unlike other cruise shoppers, the TA will spend virtually no time on making this sale. If my sale requires two hours to complete, why should I pay the same price as a client who requires 25 hours? And again I point you to the bolded text above - the TA won't be working hard for ME!

 

If the Car/Cruise isn't selling the dealer or cruiseline lowers the price.

 

And I will fully take advantage of that lower price. :)

 

Would you dare walk into a Best Buy ask what they paid for a TV then tell them you'll only give them 1/2 the profit they have set their margins to make.

 

Don’t need to. I’ve already read consumer reports, done my research, and am aware how much markup they are getting on that TV. But I remind you that not every commodity purchase lends itself to discounting. Cars do. TV's generally don't. Nature of the market in the US.

 

Think about this, rather than trying to take money out of the pocket of the TA, ask X for a lower price. The rate they pay their customer service is less than what a TA gets for commission. So they actually make more money when you book direct. Tell them you want a lower price or OBC. After all, they are setting the price. This way you are only taking money out of the pocket of the cruise line.

 

Celebrity doesn’t do business this way. Try it and see. For the most part, the only way to get a lower price is through the TA. And I justify that by making sure the TA does less work for me. It’s a fair deal…on BOTH ends.

 

How would you feel if someone came to you and said, I don't feel you are worth what I am paying you, so I'm only going to give you 1/2. That's essentially what you are saying when you request OBC or a gift. You may not mean it that way, but if you are only calling so you can take away some of the money they make, how would you feel if you were on the other end.

I would feel that this is a client who shops on price. I would not feel insulted or degraded. I would study the deal and decide whether or not I want to sell my services at the price they want to pay. If it’s worth it to me, I’ll sell it. If not, I won’t. Simple as that.

 

If you are savy enough and don't need a TA, don't look to take advantage of them. Build a repore and they will do what they can to help you to save money and have a great trip.

 

I am not "taking advantage of" a TA. I am giving them a sale. If they don’t want my money, they don’t have to take it. There are plenty of others who will. :)

[Leejnd4]

No it's not. If someone has acne, how hard would it be to get a scrip?

 

Look, let's not compare buying cruises to buying health care - on any level, okay? I hope we can all agree that health care is simply not in the same category as travel. Noboby is going to DIE or be physically harmed or disabled if they make a mistake in buying a cruise. Can we at least agree on that? :rolleyes:

[FinelyCruising]

My comment was in response to your concern about the idea being wierd....the line of thinking to me was not wierd, yet i have no desire to drill down and speak of how that relates to OBC's. Sound good?:D

[bobbyleduck]

I'll take this one at a time. I don't take the time to bother with what the car salesman, or the travel agent is getting paid. I just research the price and value of the car or cruise and then I negotiate with that information. I'm not a fan of car sales people, and I don't buy new cars. Between us, my wife and I have owned only six cars in our life and none were ever newer than seven years old. We bought four of them from individuals, and the current car I drive is nearly 25 years old and I've owned if for half that time.

 

Regarding Best Buy, because we actually have one of them in Bend, if they are not willing to part with the item I want at what I consider a fair price, I leave and continue to check elsewhere.

 

If X were offering the best deal, then that is what I would do, but they have chosen to give travel agents a commission to handle much of the "grunt" work. If I'm not interested in the "grunt" work then I expect a better deal from the travel agent.

 

As for getting personal about what people pay me, that's OK! I am a Volunteer Financial Educator. I've been doing that for more than 6 1/2 years and I've never been paid a penny for my Financial Classes. I don't sell anything and I won't accept money, personally, for what I do. That doesn't, of course, mean that travel agents or anyone else for that matter have to do the same.

 

By the way, when did it become taking away money from a travel agent when we request the best possible deal. We've already done all of the work, found the market price and offered the travel agent the opportunity to book the cruise and collect a commission. All we ask in return is that we get fair value for our efforts to find the cruise we want, check on all of the details and then hand over the actual booking to the travel agent.

 

Happy cruising to all who can still afford to cruise!

 

Bob

[Texed]

Lee Anne,

To me you are the perfect client. You do all the work, and I get paid for it. I will be glad to give most of my commission to you. :)

[Jade13]

Lee Anne,

 

To me you are the perfect client. You do all the work, and I get paid for it. I will be glad to give most of my commission to you. :)

 

 

I get it too.