Travel Agency Commissions?

[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 am taking a short 3 night cruise and deciding whether I should transfer it to a TA I have used 4 times as I will save $70.00 ($35.00pp) over the cruiseline's rate. The risk if I cancel is $75.00pp to the agency. I would be making the agent money and cruiseline's TA still gets their share too. I actually feel a bit guilty if I do not transfer. Note the only work of the TA was by e-mail when I asked for my price if I transfered. Since this cruise is sold out I had to e-mail the breakdown of what I am paying so they could figure out what they would charge.

 

Note this agent has been making money off of me. I do all the work and just fill out transfer paperwork when I am ready. Cabin and dining is already in the system.

 

What would you do?

[Karynanne]

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?

 

No argument from me that bargaining is done is many different cultures...BUT is it acceptable when dealing wth a TA? Yes, I too have "negotiated" when buying a car, or purchasing a home. But I don't when it comes to situations that I want to create a permanent relationship. Mind you, maybe not for the rest of my life...but so far, it's been quite a few years. I feel we DO get our OBC, because of the working relationship we have with our TA. They provide an excellent service...and we in turn, give them numerous referrals.

 

I too am self-employed. I'm a Dental Business Consultant. I work with Dentists and their staff to build profit making businesses. And they do make a profit. But I have never heard of any situation where a patient wanted to know what the rock-bottom price of a crown was to that Dr. It would be considered very rude and not acceptable. And I would never ask my TA what their profit was on a particular cruise. They are in business to make money and provide a service.

[FinelyCruising]

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. :)

 

and here I thought you just were a waffle taster!

 

Here's a question, aren't the internet agencies that LeeAnne speaks of as dealing with operating with a solid base of mostly savvy cruisers knowing exactly what they want?

[Texed]

What would you do?

 

I would do what YOU want to do. If you have done all the work and feel comfortable with it, go for it. :)

[Texed]

and here I thought you just were a waffle taster!

 

Yeah, I hardly ever get into these debates. :cool:

Here's a question, aren't the internet agencies that LeeAnne speaks of as dealing with operating with a solid base of mostly savvy cruisers knowing exactly what they want?

 

Yep! What is your question?

[bugsy1968]

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

 

It's very interesting to read everyone's opinions, and I hope that all readers know that this is all meant in good spirits (on my part at least) :) but, I do have a question per the above quote?

 

If you don't need to avail yourself of our services, then why do you call a multitude of agents and waste their time?

 

If you had a good agent to begin with and to whom you showed a bit of respect & loyalty, you might be very surprised to see that respect & loyalty returned. If all you are looking for is the cheapest deal, please proceed to the next agent.

[cruiseorbust]

I must say I found reading this thread to be very frustrating. As a 20 year veteran of the Travel Industry, I would be very offended if someone were to ask me how much I was making on their booking. When you buy an apple at the grocery store, do you ask them how much it cost them? Or, when you buy furniture, clothes, etc. would you even dream of asking this? As a TA, I would not do business with a client that was unable to recognize the value that I bring to the table - if saving a few $$ in OBC is more important than the relationship and quality/service provided - then don;t let the door hit you on the way out.

 

Sorry if this sounds harsh, but I pride myself on the extensive knowledge, service and expertise I provide, and always do my best to offer my clients the maximum of benefits (i.e. upgrades, OBC, amenities, etc.) at the lowest possible cost but this just goes too far.

 

 

Well said!!!!! I couldn't have said it better myself!

 

For TA's that are working for a host agency, what type of split do you usually get....50/50? Also, do you get a 1099 at the end of the year to file with the IRS?

[FinelyCruising]

That was the question....let me start it with a capital letter....

 

Aren't the internet agencies that LeeAnne speaks of as dealing with operating with a solid base of mostly savvy cruisers who already know what they want?

 

Perhaps clumsy, so let's try this...

 

Aren't internet agencies already dealing in large quantities already with cruisers who know exactly what they want and are looking for that and the agencies best price for a quote?

 

Cruises with the major lines are pretty non-complicated at this point, I think.

[Texed]

Aren't internet agencies already dealing in large quantities already with cruisers who know exactly what they want and are looking for that and the agencies best price for a quote?

 

Yes, that is why they can discount. :cool:

[FinelyCruising]

are there agencies who truly cannot reduce the cruise line price by some amount?