Commisions

[susiesan]

It is helpful to know how much of the commission is rebated back to the customer in the form of OBC, prepaid grats, and other goodies for those of us who are our own TA. I do my own research and choose the cruise I want having no need of the services of a TA. I only book with a TA if I get a better deal than booking direct with the cruiseline. Because I do all the work in researching and choosing my cruise, and the TA does almost nothing except call it in, I expect the maximum in OBC's and other offers from the TA I book with. I use the web site where you put your cruise out to bid. Then you see all the best offers all at one time.

[PVCruiser]

The commission on the cruise fare itself is 18%.

 

Whether you buy directly from Oceania or a TA, the cruise fare is the same (and sometimes better from a TA when they do a bulk purchase) so I would suggest you go with a TA and not worry about the commission.

 

The comments in other replies about OBCs are also worth considering.

 

(-: Jack

[wripro]

The one element that seems to have been ignored here is service. Yes, you may pay certain TAs a bit more but there are those agents who provide service and amenities you will not receive from the agencies who cut their commissions to the bone. You might get an upgrade. You might get help in case of a problem onboard. Those things can be worth more than the small amount you might save by haggling.

[JimandStan]

The commission on the cruise fare itself is 18%.

 

Whether you buy directly from Oceania or a TA, the cruise fare is the same (and sometimes better from a TA when they do a bulk purchase) so I would suggest you go with a TA and not worry about the commission.

 

The comments in other replies about OBCs are also worth considering.

 

(-: Jack

 

Jack-

 

That percentage is incorrect in general and specifically incorrect regarding Oceania Cruises.

You are correct, however, in saying that the cruise buyer need only concern themselves with the fare paid and the onboard "goodies".

 

Jim

[brian_uk]

This thread strikes me as nothing more than G R E E D.

 

Do I actually care whether my TA earns 10 or 11 or whatever commission....actually NO. They are entitled to earn a living and if their advice is good....so be it.

 

I neither have the time nor inclination to worry about any such trivialities. I earn a good living...more than some and less than others but its actually nobody elses business as to the amount.

 

In the Real Estate business I was always taught that you earn your percentage and if you sell and the next man earns more...be satisfied.

 

My TA lives a good life, gives great advice and has saved me a bundle over the years and I will continue to use them.

 

Why on earth anybody else is worried as to what they earn other than THEY can request more just beats me.

 

Maybe just my laid back attitude.

 

Brian

[JimandStan]

This thread strikes me as nothing more than G R E E D.

 

Do I actually care whether my TA earns 10 or 11 or whatever commission....actually NO. They are entitled to earn a living and if their advice is good....so be it.

 

I neither have the time nor inclination to worry about any such trivialities. I earn a good living...more than some and less than others but its actually nobody elses business as to the amount.

 

In the Real Estate business I was always taught that you earn your percentage and if you sell and the next man earns more...be satisfied.

 

My TA lives a good life, gives great advice and has saved me a bundle over the years and I will continue to use them.

 

Why on earth anybody else is worried as to what they earn other than THEY can request more just beats me.

 

Maybe just my laid back attitude.

 

Brian

 

Another marvelous post, Brian. No one could have said it better.

Well, maybe Jesus did:

"The Worker is worthy of his wages" Luke 10:7

:D

[Oceans&Rivers]

It might cross your mind to wonder how much your neighbor tips the newsboy, but you wouldn't ask the newsboy.

 

This reminds me of a program I saw on Oprah many years ago (when I actually used to watch her show) where the show revolved around the topic of tipping. It was in the days where the audience was part of the show and Oprah took the microphone out to audience members and asked them questions.

 

The members of her audience were all people who were in professions where they were tipped as part of or most of their compensation, and most (if not all) of those were restaurant workers, i.e. servers like bartenders, table servers, etc. They offered up suggestions for tip amounts that were much higher than what was known to be customary.

 

Prior to that show, most people I knew (my hardworking parents, for example) tended to tip 10% to 12% for good but average service (and often the cost of alcohol for the meal was deducted, or a lesser percentage tipped), but after Oprah's program 15% became the standard, minimum expected tip, with anything less than 20% of the entire bill in an upscale restaurant considered almost an insult.

 

I always thought it was very strange that the audience was made up only of those who would benefit from the higher tip. :rolleyes:

 

I tend to tip extraordinarily well for outstanding service, especially to those who do not expect it, but it irks me that tips are based on percentages of the entire cost of the meal and beverages ordered (escalating prices all around) rather than on the real services rendered.

[digby]

You made my point for me. You asked your neighbors NOT the butler.

 

A butler serving on a ship whose living for the most part is based on tips is hardly the same as a TA unless you consider tips and commissions the same thing. I just don't think there are any forbidden questions when it comes to commerce.

 

BTW I asked my next door neighbor what she tips the paper guy today. She didn't seem to find it offensive at all. I did find out I am a much better tipper! LOL!

[caribbeansun]

Just because you can ask doesn't make it right.

 

Economically, it's pretty simple really - if your TA consistently overcharges relative to the value they deliver (and please, it involves more than the $'s) they will go out of business because people won't continue to pay rates that are too high compared to the value they receive.

 

If your TA consistently undercharges relative to the value they deliver they will go out of business because they won't make a sufficient profit margin to remain viable.

 

I'd prefer that my TA remain in business, continue to provide excellent service, continue to overlook my character flaws that cause her more work (and aggravation that she never expresses) and charge a fair price which includes a reasonable profit.

 

I will say that with the availability of information these days it's an easy trap to fall into so I can sympathize - if not all the synapses are firing at the same time it's very easy to focus just on price and "goodies" while forgetting the many other things that a good TA can do and has done for you. :o

 

 

I just don't think there are any forbidden questions when it comes to commerce.

[brian_uk]

Since I am not sure which of you wrote that flattering Post, I have decided to rename you as above.

 

It was the best anagram I could find.

 

Brian

[Obie]

On a recent trip the Phoenix Airport was closed due to high winds just as our boarding time approached. I was all set to just go home and unpack but called our TA. He said, "If I hire a limo and driver, would be willing to drive to San Diego?" In the pouring down rain and high winds our driver got us there just in time for our cruise on Silver Sea.. Our TA - priceless. He had several others on the same cruise and did the same for them.

[wripro]

Obie,

 

That was my point exactly about service. And I bet the TA who returned more of his commission would not be willing to do the same thing.

[pacheco18]

I would not be so sure.

 

I get a huge discount and spectacular service.

 

Just because you pay someone more, does not mean they will give you more.

[wheatenlover]

I booked a cruise of July 30. On September 10, I emailed Oceania to transfer my booking to my TA. The TA was told by Oceania that she would not be receiving a commission because I needed to move the booking within 30 days and it was now 40 days. I have been on the phone with Oceania for the last hour asking why I was not told of this policy. I have cruise several times with Oceania and previously was told by Oceania that the bookings could be moved up to TAs up to final payment. When I asked why I received no notice, they told me it was a matter between Oceania and the TAs not the customers. I disagree. I would happily transferred the booking if I had known it mattered.

[LHT28]

I booked a cruise of July 30. On September 10, I emailed Oceania to transfer my booking to my TA. The TA was told by Oceania that she would not be receiving a commission because I needed to move the booking within 30 days and it was now 40 days. I have been on the phone with Oceania for the last hour asking why I was not told of this policy. I have cruise several times with Oceania and previously was told by Oceania that the bookings could be moved up to TAs up to final payment. When I asked why I received no notice, they told me it was a matter between Oceania and the TAs not the customers. I disagree. I would happily transferred the booking if I had known it mattered.

This thread is 2 yrs old why not just start a new one

Things change

I believe the rules changed earlier this year

I am sure someone will have that information

 

If you had intended to transfer your booking from the get go why not ask Oceania rep at the time of booking what the policy was then?

[Hawaiidan]

Oceania and other similiar companies pay 15 to 20% of the net fare I was told by a reliable source. The net commission fare is less taxes, port fees and other charges. Depending on the level of cabin you book the comission might be as high as 25% .with volume bonuses I was told..

 

So, if you are gettting 9% discount,your agent is making 6%.. about the same as a realator. While not in the same price point, the volume of cruise sales is greater than property.

 

If you are playing around with 7 and 14 day cruises that cost inder $2000, it is one thing. However, I cruise 30 to 60 day cruises and that puts you in the 25,000 to 40,000 range. At that level, I want everything on the table, and we both show our cards. When you get in the 5 fugure range its a business deal, no more no less. The agent knows what I am holding. Knows what I will pay, and will meet it or not. We both can walk or not

 

My agent and I have a long realtion and knows if he treats me well I will be back next year. He has the value of repeat business. He would make 15% one time or make 6% 3 times.. Both win

[Jancruz]

Oceania and other similiar companies pay 15 to 20% of the net fare I was told by a reliable source. The net commission fare is less taxes, port fees and other charges. Depending on the level of cabin you book the comission might be as high as 25% .with volume bonuses I was told..

 

So, if you are gettting 9% discount,your agent is making 6%.. about the same as a realator. While not in the same price point, the volume of cruise sales is greater than property.

 

If you are playing around with 7 and 14 day cruises that cost inder $2000, it is one thing. However, I cruise 30 to 60 day cruises and that puts you in the 25,000 to 40,000 range. At that level, I want everything on the table, and we both show our cards. When you get in the 5 fugure range its a business deal, no more no less. The agent knows what I am holding. Knows what I will pay, and will meet it or not. We both can walk or not

 

My agent and I have a long realtion and knows if he treats me well I will be back next year. He has the value of repeat business. He would make 15% one time or make 6% 3 times.. Both win

 

You are misinformed

Jancruz1

[Hawaiidan]

Please correct my errors.....what is correct? That is what I was told by some in the business.some years ago. I have seen hotels that pay15% to +18%

Thats right out of the" hotel book" thats published for agents

[Dutch Explorers]

Please correct my errors.....what is correct? That is what I was told by some in the business.some years ago. I have seen hotels that pay15% to +18%

Thats right out of the" hotel book" thats published for agents

 

 

I have worked in the travel industry for more than 10 years. The one thing that has decreased significantly over the years is the commissions.

I have experienced airlines go from 7-10% to 0%! Also Hotels and Cruise lines decreased their commissions either by simply decreasing the commisions or decreasing the commissionable base amount.

More and more TA's need to cross sell in order to make a living (insurance is still very profitable).

In the end the commission barely covers the work and effort by the TA.

[LHT28]

I have worked in the travel industry for more than 10 years. The one thing that has decreased significantly over the years is the commissions.

I have experienced airlines go from 7-10% to 0%! Also Hotels and Cruise lines decreased their commissions either by simply decreasing the commisions or decreasing the commissionable base amount.

More and more TA's need to cross sell in order to make a living (insurance is still very profitable).

In the end the commission barely covers the work and effort by the TA.

Well said !!

[wassup4565]

In the middle of my first experience with a hands-on travel agent, and we'll see how it goes. So far, we're getting picked up on departure day by a town car to take us to the airport, that's the freebie I can see up to now. There was a bit of a hustle to get us signed up for insurance, which I declined, having ample and better coverage through two existing plans. Also we were signed up (without being asked) for an O transfer from Marco Polo airport to cruise port that cost an outrageous $249 CDN (tnx to experienced cruisers that put me straight about that!). She cancelled that when I called her on it, and arranged a $50 taxi instead. We did get an offer to upgrade from our balcony to a penthouse, but we'd have had to pay more for that.

 

So how I see it now is the only benefit is I'm getting driven to the airport. Which a friend would have done anyway.

[Wanderlust Living]

I suspect that many of us spend a good portion of our disposable income on cruising ( I know I do). If the subject of TA commisions isn't taboo, I am interested to know the rates paid by cruise lines to TA's for cruises, travel insurance,and other incidentals offered by the cruise lines.

 

I will bite because I believe this is an information board, BUT, this will be my only post on this thread. Lol!!!

 

The Oceania commission averages 15% for US and Canadian cruisers.

 

So, let's figure this out.

 

Does this mean on a cruise rate of $3,000 the TA is automatically making $450?

 

NO!

 

There are more deductions.

 

1. Some CL have a non-commission portion.

 

As an example lets use $800. This is strictly from the cruise rate not taxes, ports, etc.

 

Now, we are at $2,200. The number now is $330.

 

2. What Commission Plan is your TA on?

(What they split with their Agency)

 

This varies from 50% to 90% or even flat fees.

 

This is the TRUE magic number working out the commission, and there is NO way to find this out.

 

 

So, if your TA is on a 80% plan their commission will most likely be

80% of 330= $264.

 

See the difference between $450 and $264?

 

Then the TA has to pay monthly for their membership plan, booking software, website hosting, IT if they don't run their own websites, Internet, phone bill, and if they are Full Service their FAM trips, so that can answer all your questions accurately.

Also, what about their own salary for their time?

 

There is a lot more Involved in calculating the commission that the mere 15% of a $3,000 cruise rate.

 

If you really want to know ask your TA, because comparing apples to oranges on these boards has to be really frustrating for BOTH the TAs and Cruisers.

 

 

The Cruise Lines and Agencies are also getting a portion of that 15%

 

 

Hope this helps.

 

You can also use this with a Realtor because they have a similar tier system.

[Wanderlust Living]

O, wow! I did not realize that this thread is from 2 years, but someone must of found it and bumped it up.

Needless to say commissions and perks for the cruisers will remain a hot topic!

I know I only said 1 but I have a question that has nagged me since the last thread this past weekend, and now I just remember.

 

If the cruise ship is paying me Example % and it is getting calculated as my salary on my Tax Form, how do you deal with the perks?

 

EX: If my tax form says $10,000 commissions paid, but I gave away $3,000, is the IRS going to honor my generosity to vacationers or tell me to kick rocks?

 

Some call them rebates, OBC, cash, or amenities?

 

I can see writing off the wines bottles as business expense, but what about the money?

 

I am not sure where to post this but hopefully a TA can respond since this is an anonymous board.

This subject of sharing commission is also taboo amongst TAs.

 

I am new so this information Is from this year.

The way I understand it 'rebating' and 'OBC' is frowned upon the CLs. It is done under the table by TAs and some CLs have even discontinue it or place placed a low percentage on what can be offer as OBC.

Your TA might not be a greedy little pig, after all?

They are just conforming to the CLs NEW 2012 rules.

 

Again, this is for regular TAs like myself NOT the huge online cruise mills/rebaters. I have a feeling they are working more like car brokers and misleading the cruisers on prices.

 

Have cruisers thought about this? You might be cutting into someone's reported salary.

Have any big spender cruisers ever received a gift tax form from their TA?

[pacheco18]

In the middle of my first experience with a hands-on travel agent, and we'll see how it goes. So far, we're getting picked up on departure day by a town car to take us to the airport, that's the freebie I can see up to now. There was a bit of a hustle to get us signed up for insurance, which I declined, having ample and better coverage through two existing plans. Also we were signed up (without being asked) for an O transfer from Marco Polo airport to cruise port that cost an outrageous $249 CDN (tnx to experienced cruisers that put me straight about that!). She cancelled that when I called her on it, and arranged a $50 taxi instead. We did get an offer to upgrade from our balcony to a penthouse, but we'd have had to pay more for that.

 

So how I see it now is the only benefit is I'm getting driven to the airport. Which a friend would have done anyway.

 

Wrong TA IMO.

 

Some TAs have groups and give you free gratuities and also an OBC (that is worth hundreds of dollars). In your case, the perks are not much and the TA should never have signed you up for the transfer. A good TA would have told you that it is cheaper to do on your own. I would even question the $50 taxi. What if a regular metered tax is only 25 or 30??

 

Get a different TA!

[JimandStan]

Wrong TA IMO.

 

Some TAs have groups and give you free gratuities and also an OBC (that is worth hundreds of dollars). In your case, the perks are not much and the TA should never have signed you up for the transfer. A good TA would have told you that it is cheaper to do on your own. I would even question the $50 taxi. What if a regular metered tax is only 25 or 30??

 

Get a different TA!

 

 

It really isn't good business, for the client OR the Agent, to insist on the rock bottom cheapest alternative at every turn.

Even the most dedicated Agent can't stay in business if nothing is commission-able.

You can only pluck so many feathers before you kill the Goose that laid the golden egg.