PLEASE question about cruise prices?

[motherchic]

I realize that I cannot mention specific TA names. But, I found that when I was looking into a cruise on RCCL, I would receive allot of "competing" bids. With offers of OBC, pre paid gratuties etc....

When I looked into a cruise on Carnival.... very few competitive bids and no incentives at all like OBC etc....

Does anyone know why?

Thank you

Nadine

[Kenzibell]

Certain cruiselines do not allow anyone to underprice them. Usually, OBCs come from a TA's pocket, unless it is a special from the cruiseline or a group promo. I hope that helps!

[rjg41]

Certain cruiselines do not allow anyone to underprice them. Usually, OBCs come from a TA's pocket, unless it is a special from the cruiseline or a group promo. I hope that helps!

 

To expand on this a little:

 

1) The cruise lines that no one can discount are: Royal Caribbean, Celebrity, Disney, and Regent.

 

2) Except in the case where "top account" agencies have access to special promo fares on certain sailings or in the rare case that the agency has a promo group, ALL DISCOUNTS from the cruise lines rates AND OBC, not also offered by the cruise line, comes from the TA's pocket.

 

3) Agency commission is a percentage of the cruise fare not including port or taxes. Carnival is a lower priced cruise line than Celebrity therefore when the price is lower the TA has less he/she can give up and still make some money, thus less competitive bids.

 

Just a side fact on pricing:

 

YOU CAN NEVER GET A LOWER PRICE DIRECTLY FROM A CRUISE LINE, THAN A TA WILL OFFER, UNLESS ONE OF THEM HAS MADE A MISTAKE!!!!!!!

[MamaParrotHead]

I realize that I cannot mention specific TA names. But, I found that when I was looking into a cruise on RCCL, I would receive allot of "competing" bids. With offers of OBC, pre paid gratuties etc....

When I looked into a cruise on Carnival.... very few competitive bids and no incentives at all like OBC etc....

Does anyone know why?

Thank you

Nadine

 

I'd guess because of their individual business positions. There have been discussions on here about how RCI is having a cash flow problem (cranking out the bazillion dollar new ships and experiencing lower booking numbers in this economy with their higher pricing, so they have been slashing the cruise fares) and because (it's documented somewhere on this board) that Carnival has decent liquidity and hasn't seen much, if any, of a dip yet in bookings. RCI is doing what they have to to get passengers, where as Carnival hasn't had to (yet).

 

It could also have to do with the situation above that RCI is giving incentives to companies to book their product over Carnival's, therefore the agency is offering those incentives to help them in making their own sales goals with RCI.

[UpstateCruizer]

I realize that I cannot mention specific TA names. But, I found that when I was looking into a cruise on RCCL, I would receive allot of "competing" bids. With offers of OBC, pre paid gratuties etc....

When I looked into a cruise on Carnival.... very few competitive bids and no incentives at all like OBC etc....

Does anyone know why?

Thank you

Nadine

 

I too used that site for my previous cruises. The last time I requested a price quote for a Carnival cruise I only had 3 replies. When I asked the TA that I previously used why there was no reply from his agency he told me that Carnival has made it so TA's receive very little comission on cruises booked with them. This makes sense esp given the new Early Saver program. That TA lost comission on $500 plus for my Miracle cruise in October because of rate drops. I know at the time I talked to him Royal Caribbean was offering much better incentives for him to get cruises booked.

 

I must say though I wasn't comfortable booking a cruise with any of the agency's that replied. I had never done business with the lowest priced one and wasn't willing to take a chance esp after some of the horror stories we heard last year. I booked directly with a pvp as the savings of booking elsewhere did not outweigh the convenience I felt by booking with a pvp. Shortly after I closed my request I received an email from one of the TA's on the site that guaranteed she could be my current price with the PVP or she'd give me a $50 gift card. Still not worth the risk IMO.

[firefly333]

..... I think most of the above about its because of cash flow and that has nothing to do with why you are not being offered OBC.

 

Its because TAs DISCOUNT Carnival cruises, so they dont offer OBC. I know one that discounts 10% off the cruise portion of the price. With RCL they offer OBC based on how expensive of a cabin you book.

[firefly333]

I too used that site for my previous cruises. The last time I requested a price quote for a Carnival cruise I only had 3 replies. When I asked the TA that I previously used why there was no reply from his agency he told me that Carnival has made it so TA's receive very little comission on cruises booked with them. .

 

I think this plays into it too. As I said I used a TA who discounts. I had a price drop after final payment for my January cruise when Carnival was still doing them. The TA wouldnt give me the price drop. They came right out and said they were making so little on this booking (it was a small 5 day cruise), that they wouldnt process the $60 price drop, so I never got it.

 

(remember since they discount a certain percentage, they would have had to re-process their discount too. The first price drop, they had to send me a $5 store card, which they over nighter and spent $10 on the postage!!! I couldnt believe it). So, if they discount and you get a price drop which affects the discount, their percentage etc, you can easily understand why they would say no). With Carnival it was just not worth all that for what they got.

[motherchic]

I knew about the cruiselines that dont let them go lower in price. I have always sailed on Celebrity but when I was looking at the cruises RCCL esp. And went thru that competitive site I got 9 responses. So I was so excited to try Carnival. This same site only 2 responses and no price drop at all.

Thanks for the insight. I never thought about it from that point of view. At least I know why I am not getting responses

Nadine

[rjg41]

I too used that site for my previous cruises. The last time I requested a price quote for a Carnival cruise I only had 3 replies. When I asked the TA that I previously used why there was no reply from his agency he told me that Carnival has made it so TA's receive very little commission on cruises booked with them. This makes sense esp given the new Early Saver program. That TA lost commission on $500 plus for my Miracle cruise in October because of rate drops. I know at the time I talked to him Royal Caribbean was offering much better incentives for him to get cruises booked.

 

I must say though I wasn't comfortable booking a cruise with any of the agency's that replied. I had never done business with the lowest priced one and wasn't willing to take a chance esp after some of the horror stories we heard last year. I booked directly with a pvp as the savings of booking elsewhere did not outweigh the convenience I felt by booking with a pvp. Shortly after I closed my request I received an email from one of the TA's on the site that guaranteed she could be my current price with the PVP or she'd give me a $50 gift card. Still not worth the risk IMO.

 

I'd guess because of their individual business positions. There have been discussions on here about how RCI is having a cash flow problem (cranking out the bazillion dollar new ships and experiencing lower booking numbers in this economy with their higher pricing, so they have been slashing the cruise fares) and because (it's documented somewhere on this board) that Carnival has decent liquidity and hasn't seen much, if any, of a dip yet in bookings. RCI is doing what they have to to get passengers, where as Carnival hasn't had to (yet).

 

It could also have to do with the situation above that RCI is giving incentives to companies to book their product over Carnival's, therefore the agency is offering those incentives to help them in making their own sales goals with RCI.

 

None of the speculation above regarding pricing and commissions is really accurate. Carnival commissions for top account agencies has not changed and Royal Caribbeans incentives are minimal and have little effect on how most agents will do bookings. Both cruise lines have been doing much of their historical pricing practices. If anyone believes that Carnival is not feeling the impact of the economy why did they cancel a ship going to the Med. and take a look at the recent pricing for Spirit for Alaska.