How do Cruise Line companies work with Travel Agents to their mutual benefit?

I've done a lot of traveling in my life, but I've never gone on a cruise before.

 

I'm brand new to this board. This is my first post.

 

I'm very green to the cruising vacation lifestyle. So I'll start by saying 'sorry' now, as I launch into some maybe obvious questions. I'm excited and currently researching and looking forward to booking my first cruise. But first, let me begin by saying....

 

... the Cruise booking process is weird.

 

When I book a regular vacation, consisting of flights and hotels, I do online comparison shopping of various travel websites to find the best deal. Very often an aggregator site will help me find the cheapest flight. Also, there are several online travel websites that points you to highly discounted hotel rooms. However for cruising...

 

... there doesn't seem to be any price difference.

 

Cruise Line website. The first obvious place to start, would be the Cruise Line's website. I did that and got a quote. Great. Next. It's time to start comparison shopping.

 

Online Travel Agents and websites. I visited several online travel agent websites to price compare. What? This is shocking. All of the prices look practically the same. i.e. within a few dollars of each other. A couple of travel agents may, for example, offer an additional incentive of a $25 on board credit. That's the only difference.

 

This is baffling to me. This leads me to all kinds of questions.

 

Why are all of prices, essentially the same?

Why is there no competition?

 

Are the travel agents not allowed to compete on price?

Are they only allowed to give very minor incentives to book through them?

 

If the prices are all the same, why would I bother using a Travel Agent?

If the only thing a travel agent can offer me is an additional $25 on board credit, why would I bother? At that rate, I might as well book directly with the cruise line. It's simpler. I would keep control my booking. There would be no need to utilize a middle-man.

 

Why would the cruise company redirect me to a Travel Agent?

On one of the Cruise Lines websites, they have a webpage to "find a travel professional". In other words, it looks like they're potentially sending me to a Travel Agent. I'm already on their website. Wouldn't they rather that I book the trip directly with them?

 

Why do people transfer their booking?

I also read somewhere about transferring a booking from a cruise line to a travel agent. Why would I bother? I've already booked the cruise with the cruise line. What incentive would I have to transfer this booking to a travel agent?

 

I guess all of my questions amount to the following.

 

I don't understand the cruising business model. In other words,

 

How do Cruise Line companies work with Travel Agents to their mutual benefit?

 

Thanks for any thoughts,

Andy

Edited November 4, 2016 by andy_man

I'm not in the travel industry so don't know all of the ins and outs, but as I understand the system...most cruise lines do not allow TAs to advertise a lower price than what the cruise line offers. However, if you were to call some TAs, you would find that the incentives aren't so minor. TAs are allowed to provide incentives out of their commissions. They may not give you a lower price, but they may pay your gratuities or give you on board credit or other incentives. For example, on the Alaska cruise I have booked for June, my TA is giving me $400 on board credit. That makes it worth it to me to book with a TA. If I'd booked with NCL, I'd be paying the same price with no on board credit. Those incentives are why someone would transfer their booking from the cruise line to a TA.

 

So, it may appear there's no competition, but there really is.

Edited November 4, 2016 by Quilting_Cruiser

I'll start with a few answers, then others can chime in. Some years ago, there was a lovely cruise line called Renaissance. There ships had a unique design, and their guests loved them. Their business plan was to only sell cruises directly to customers, i.e, travel agents were cut out of the loop entirely. Travel agents, looking after their own best interests, never suggested that anyone book on Renaissance. In 2001, Renaissance abruptly ceased operations, declared Chapter 11 reorganization, and to their credit, paid to send their shocked guests and staff home. This is a cautionary tale for cruise lines that do not nourish the symbiotic relationship between the cruise lines and their best salesmen - the travel agents. The good news is that those lovely ships were purchased by other lines and (after renovations) are sailing the seas today.

 

Travel agents receive a commission for selling cruises. In the olden days (a few years ago) travel agents could undercut the competition by cutting their own commissions while the base price of the cruise held steady. The theory was that the diminished commission on one cruise would be more than compensated for by the increased volume of cruises they would sell. Hold the phone, said the cruise lines. In order to protect the integrity of our product, no more reducing commissions. OK, I'm foggy on this one. But there's a story there. Now the on-board credit comes from the cruise line, some travel consortiums, some high level credit cards, and a few other sources. We're getting about $1500 on board credit for a transpacific cruise coming up soon. It's not all chump change.

 

Some travel agents will "buy" a block of rooms on certain cruises, effectively cutting other travel agents out of the market. There are TA's who post here who can explain the process better than I can.

 

Our travel agent is our advocate when something goes awry. It can be as simple as following up on a request for late dining or as significant as clearing up mistakes on the final on-board accounting. Or whatever. Our agent also is a top producer for our favorite cruise line. So they have more clout to help us out. Such is the way of the world.

 

So those are my initial thoughts - I'm certain others will flesh out the picture for you (and correct any misapprehensions from me) . It all works somehow. Happy cruising.

Edited November 4, 2016 by Shorex

First, the relationship between the cruise lines and TA's is very strong as a reported 75% of all cruises are booked through TA's. They in essence act as extensions of the cruise lines but have the advantage of representing all. This provides a great deal of flexibility and simplicity to the traveler by being able to go to once source for comparative shopping. They, for the most part, are also professionals who will provide all the services to the consumer to support their booking and handle these transactions, etc. This is why you would be redirected to one by a cruise line.

 

Second, most mass market cruise lines do not discount the price offered through a TA versus that offered directly to maintain a level playing field. It would be unfair competition to have the price at different levels through different TA's and would result in forcing the consumer to have to check multiple sources for differing prices. Competition is between cruise lines, not TA's when it comes to what is offered and at what price.

 

Many TA's will offer perks for booking through them which will come from give backs from their commissions or slightly reduced rates passed on through group cruise or block bookings made by them on a group of staterooms, but this can carry selection restrictions, etc., for the consumer. But this is one method of TA's competing with each other. But beware, some TA's also charge fees not charged by the cruise lines for originating, modifying, or canceling a booking made through them. Know their policies before you book.

 

We use a TA (and have used the same one for many years) for the service they provide. They handle all aspects of our booking, including price watches, and are our advocates and representatives for the cruise line should there be any issues or attention needed with the booking. We also have complete flexibility through them for any changes to the booking we may need to make, which over the years have been many. We pay no more or no less for this than if we booked directly. To us this is a valuable service. Apparently by the amount of bookings handled by TA's many others feel the same way. But that is an individual choice.

 

The option to transfer a booking made directly or on board with a cruise line is simply to allow the passenger the use of a TA if they so desire. But it is not mandatory.

 

Hope this helps.

Edited November 4, 2016 by leaveitallbehind

 

Second, most mass market cruise lines do not discount the price offered through a TA versus that offered directly to maintain a level playing field. It would be unfair competition to have the price at different levels through different TA's and would result in forcing the consumer to have to check multiple sources for differing prices. Competition is between cruise lines, not TA's when it comes to what is offered and at what price.

 

 

While this is true, Princess cruises (which is the limit of my ocean cruising experience) is an exception. While TAs are not allowed to advertised reduced prices my TA always gets me a fare reduction in the 8 - 12% range and often throws in OBC (on board credit; i.e. money for spending on board for drinks, gratuities, excursions, etc).

 

OBCs are another way to reduce your total cost that does not show up in most advertisements. OBCs can come from a variety of sources:

 

• Travel agents
  
• Sale fares offered by the cruise line
  
• Returning passenger loyalty programs
  
• Shareholder benefits (Princess and, I think, all the Carnival Cruise Corporation lines)
  
• Military (active and retired) benefits (Princess and maybe the other Carnival Cruise Corporation lines)
  

As leaveitallbehind noted, a good travel agent specializing in cruises should be able to help you out. In addition, go to the individual boards for the mainstream cruise lines here on cruise critic (http://boards.cruisecritic.com/) for a wealth of specific information.

 

 

Welcome to cruise critic!

Edited November 4, 2016 by capriccio

While this is true, Princess cruises (which is the limit of my ocean cruising experience) is an exception.

 

They would be one of a very few as most of those who did so in the past eliminated that practice a number of years ago.

 

Not saying this is necessarily the case with Princess, but often times reduced rates are a function of early booking pricing and blocks of rooms booked by a TA, especially if it is one of the larger TA's with the ability to block a number of staterooms.

 

While I cannot confirm this directly, I have also heard of representatives with some of these large / national TA's that receive a reduced commission with the agency using that difference to support a fare reduction. The agent would make up the difference through a higher number of bookings generated through the agency.

Edited November 4, 2016 by leaveitallbehind

They would be one of a very few as most of those who did so in the past eliminated that practice a number of years ago.

 

 

I understand that to be true and it is one of the reasons we sail on Princess. My TA has also given us 10% discounts on Uniworld river cruises (and those are really substantial discounts because the initial fare is so high :D). But when my daughter checked with my TA about a Royal Caribbean cruise she was told that there was no possibility of a discount off the fare. I think she got a minimal ($50 for 3 people) OBC.

Edited November 4, 2016 by capriccio

As previous posters have explained , most every cruise line forbids TA's to "Advertise" their reduced rate .

You have to actually contact the TA for their price and/or amenity .

Just shopping internet rates you won't see a difference.

 

You should always get a better deal from the TA than booking direct with the cruise line. Some cruise lines permit the TA to discount their rates up front. Most permit them to offer amenities like OBC, tips, dinners , etc.. And then their are Speculative Group rates that the TA may have to offer to you.

 

65% of all cruise bookings are done thru TA's , thus the cruise lines say that they love TA's (not always evident to the TA).

Edited November 4, 2016 by MCC retired

I'm very green to the cruising vacation lifestyle..... the Cruise booking process is weird.

When I book a regular vacation, consisting of flights and hotels, I do online comparison shopping of various travel websites to find the best deal. Very often an aggregator site will help me find the cheapest flight. Also, there are several online travel websites that points you to highly discounted hotel rooms. However for cruising...Have all your prior travels consisted of individual parts? Air+Hotel+Car+Extras? Have you not booked a tour package? If so, cruises are booked more like a complete tour package, with much different cancellation policies and contracts. But yes, it is very different than your experience with aggregator websites (but do check out the Cruise Air forum to see what those consolidator flight tickets can and cannot do!)

 

... there doesn't seem to be any price difference. As noted by others, you have to dig a little more to find the discounts or deals....contractually they cannot be posted on publicly accessible webpages. Type of discount or deal does depend on what the individual cruise line allows agents to offer.

 

If the prices are all the same, why would I bother using a Travel Agent?

If the only thing a travel agent can offer me is an additional $25 on board credit, why would I bother? At that rate, I might as well book directly with the cruise line. It's simpler. I would keep control my booking. There would be no need to utilize a middle-man.Many folks agree with this statement; they prefer to book direct as they find the incentives to book with a TA insignificant to overcome their control of their own booking. I happen to fall into the camp of preferring the 10% discount by my very efficient and detail oriented TA.

 

Thanks for any thoughts,

Andy

Hi Andy, welcome to Cruise Critic. You've asked a good question for a newbie, and you''ve already received a couple of really great answers. I've added my own two cents worth in red above. And you might be interested in some similar threads posted recently.

 

http://boards.cruisecritic.com/showthread.php?t=2420007

 

http://boards.cruisecritic.com/showthread.php?t=2415875

 

I will add one thing that you may not yet be aware of regarding cruise bookings. On most lines, you can continue to shop for a lower price up until final payment date...so unlike those aggregator sites, you are not locked in to the price you agree to upfront...it can go lower! :) :D

It's called Rate Parity...a cruise line or hotel or even an airline sets the rates for its products. The TA cannot advertise a lower rate. I was a Hotel GM and can attest to how this works. Let's say my Best Available Rate is $90. The travel agent will send me, the hotel, a reservation with an $81 Rate. Meaning they took out thier 10% commission.

 

The TA making a reservation for a customer means that the guest HAS to go through the TA for any changes. Even though I see the reservation on my end, I am not allowed to change the reservation without the consent of the TA. This is too much trouble, so I would tell the customer THEY need to go through the TA for changes.

Thank you to all who have replied.

Edited November 5, 2016 by andy_man

Hi Andy, welcome to Cruise Critic. You've asked a good question for a newbie, and you''ve already received a couple of really great answers. I've added my own two cents worth in red above. And you might be interested in some similar threads posted recently.

 

http://boards.cruisecritic.com/showthread.php?t=2420007

 

http://boards.cruisecritic.com/showthread.php?t=2415875

 

 

Thanks Cheryl. Those threads are also helpful.

Well, I've struck out.

 

I've now directly phoned three different travel agents to see if they can improve the same posted rate that I see everywhere. Nope.

 

All they are offering is the exact same price that I see if I were to book directly with the cruise line

 

Getting an actual discount on a cruise seems like a fairy tale to me. :)

Well, I've struck out.

 

I've now directly phoned three different travel agents to see if they can improve the same posted rate that I see everywhere. Nope.

 

All they are offering is the exact same price that I see if I were to book directly with the cruise line

 

Getting an actual discount on a cruise seems like a fairy tale to me. :)

 

 

Calling 3 TAs isn't even scratching the surface of the kind of in-depth investigation that will net you a top TA who is willing to add his/her own amenities. Check out this earlier post I did regarding how to find a good TA:

http://boards.cruisecritic.com/showthread.php?p=50644654

Travel Agents are great for cruise lines because they work for a fixed rate and receive no company benefits that normal employees do.

It's sort of like "out sourcing". :)

Well, I've struck out.

 

I've now directly phoned three different travel agents to see if they can improve the same posted rate that I see everywhere. Nope.

 

All they are offering is the exact same price that I see if I were to book directly with the cruise line

 

Getting an actual discount on a cruise seems like a fairy tale to me. :)

 

 

You likely aren't going to get much if any discount (anyway that's been my and my friends' experiences...YMMV) but many offer on-board credit. My TA does have a small cancellation fee, so I don't book until I'm certain and then she gives me about 10 percent of the fare in on board credit. If you do an internet search for cruises and look for one where they think their customers are smart ;) you may find a TA that does the same. :p

Well, I've struck out.

 

I've now directly phoned three different travel agents to see if they can improve the same posted rate that I see everywhere. Nope.

 

All they are offering is the exact same price that I see if I were to book directly with the cruise line

 

Getting an actual discount on a cruise seems like a fairy tale to me. :)

 

 

Andy - are you looking for a quote for a specific cruise line? As I said earlier, some allow travel agents more leeway than others. Also are you in the states or another country?

Edited November 6, 2016 by capriccio

> You should always get a better deal from the TA

 

My first cruise, I booked through a TA (after I had researched what cruise and ship and even room I wanted) because of so many comments I had seen here of extras people got that way. I got nuttin' - no discount, no OBC, no perks at all - and my TA was much less available once the cruise had been booked. Of course I realize that means she wasn't a good TA, but she still got her commission.

 

My next cruise, I booked directly with the cruise line. Changes and additions are easy, and the cruise salesperson suggested which extras to select (and provided good reasons).

 

If I had found a TA who could get me bennies as others have reported, I would probably have used her again. As it is, I have no reason to.

> You should always get a better deal from the TA

 

My first cruise, I booked through a TA (after I had researched what cruise and ship and even room I wanted) because of so many comments I had seen here of extras people got that way. I got nuttin' - no discount, no OBC, no perks at all - and my TA was much less available once the cruise had been booked. Of course I realize that means she wasn't a good TA, but she still got her commission.

 

My next cruise, I booked directly with the cruise line. Changes and additions are easy, and the cruise salesperson suggested which extras to select (and provided good reasons).

 

If I had found a TA who could get me bennies as others have reported, I would probably have used her again. As it is, I have no reason to.

 

 

I felt the same way until a roll call member a couple cruises ago suggested the online agency he uses. Now I get about 10% on board credit. She's very responsive. I asked her the other day to see if she could apply a second FCC to my June cruise (on which I'm getting $400 OBC) and within 20 minutes she sent an email confirming it and a new itemization. If she continues to be as responsive, she'll continue to get my business. :D

Well, I've struck out.

 

I've now directly phoned three different travel agents to see if they can improve the same posted rate that I see everywhere. Nope.

 

All they are offering is the exact same price that I see if I were to book directly with the cruise line

 

Getting an actual discount on a cruise seems like a fairy tale to me. :)

 

 

I don't know what kind of TA's that you contacted but as former Cruise Specialist TA myself, I would never let a potential client go without offering something better than what they are getting from the cruise line or other TA's [emoji6]

 

 

Sent from my iPad using Forums

Well, I've struck out.

 

I've now directly phoned three different travel agents to see if they can improve the same posted rate that I see everywhere. Nope.

 

All they are offering is the exact same price that I see if I were to book directly with the cruise line

 

Getting an actual discount on a cruise seems like a fairy tale to me. :)

 

Could you elaborate on a ship and date and number of days plus the pricing and accommodations you are getting?

 

The answers you are getting about TAs and almost automatic OBC could be quite different if you are looking at say a 3/4 day Carnival weekend Bahamas cruise in an interior guarantee cabin vs a 12 night Royal Caribbean Anthem Of The Seas Eastern Caribbean cruise in a Spa Suite.

Calling 3 TAs isn't even scratching the surface of the kind of in-depth investigation that will net you a top TA who is willing to add his/her own amenities. Check out this earlier post I did regarding how to find a good TA:

http://boards.cruisecritic.com/showthread.php?p=50644654

 

Thank you for sharing your earlier post.

And I agree @Flatbush Flyer, you must look at the "net daily rate" when comparing cruise prices.