Does X Limit Amt of OBC TAs Can Give?

[Sail Girl]

I'm getting ready to transfer my 1/15 and 1/17/11 btb cruises to a TA prior to final payment. I researched various TAs through the website on which TAs compete by giving quotes on cruises.

 

I've gotten 7 quotes for each leg of the btb and the amount of OBC offeres varies from $25 to $78 on the 2 day cruise and from $50 to $175 on the 5 day cruise.

 

My first thought was to go for the highest amount of OBC - Duh!

However, one one of the TAs who responded to my request for quotes told me that X limits the amount of OBC TAs can give. He said he is only able to give me $25 OBC for the 2 day cruise and $50 OBC for the 5 day cruise. He said that "Joe Schmo" could put more OBC in to my account, but not a TA.

 

He implied that TAs that offer more OBC than X allows are not doing it as TAs but as private individuals.

 

This TA said he can prepay my tips ($161 for me and my DH) or pay $160 for Travel Insurance, which X allows, but not offer more OBC.

 

Have any of you encountered anything like this before?

 

I'd appreciate any input. Thanks

[curiouscat]

Technically YES>..... there is not suppose to be rebating...but it's done anyhow..

 

IF your TA wants to give away all her/his commission then they willl and some do.....but then your stuck with change fees etc etc etc.... it's your call.

 

 

CC

[Sail Girl]

Technically YES>..... there is not suppose to be rebating...but it's done anyhow..

 

IF your TA wants to give away all her/his commission then they willl and some do.....but then your stuck with change fees etc etc etc.... it's your call.

 

 

CC

 

Appreciate the response.

Pardon my lack of knowlegde, but will you elaborate on the fees the TA can add on?

Also, why would a TA give away all of his/her commission? How do they earn a living if they do that?

Thanks again.

[biker1972]

Why do stores sell things at below their cost? Milk for a very low price is often a loss leader. Guess what. You tell your friends, you book another cruise, you say something on Cruise Critic and 20 people want you to send them an e-mail. For a small cost a good TA can exponetially increase business. A tiny piece of a lot of bookings is often better than a large piece of one booking.:)

[CoachT]

Why do stores sell things at below their cost? Milk for a very low price is often a loss leader. Guess what. You tell your friends, you book another cruise, you say something on Cruise Critic and 20 people want you to send them an e-mail. For a small cost a good TA can exponetially increase business. A tiny piece of a lot of bookings is often better than a large piece of one booking.:)

That isn't how it happens with TAs and cruise buyers. They will go the next TA offering a lower price.

 

TAs that offer OBC are working on very thin margins and dealing in volume. They charge change fees and will reduce the amount of OBC if the price goes down because their commission drops.

 

If you need real customer service and other reasons people still use great TAs, good luck when dealing with a rebater. Then there is also getting on the ship only to find your promised OBC not there.

[yayvacation!]

I did some calling around before transfering my booking on a 1/2/11 cruise, I had offers of $50, $100 and $300 obviously I picked the $300. I asked the TA about the difference, and she said the commission is much bigger than that. The amount of OBC available also depends on the room category and how much you paid, if I had transfered her an inside room I wouldn't have seen close to that $300!! :)

 

I also transfered to a big cruise specialist that is in my area so I'm sure that had something to do with the OBC amount to.

[lvcruiser]

According to my personal cruise agent, she makes 10% commission off of any RCCL cruise (that includes RCI and Celebrity.) She provides me with OBC, which is her way of discounting the cruise price, something she cannot do because of the rules imposed on her by the lines. She is taking the OBC out of her commission and if the price drops, so will the OBC, for obvious reasons. She works out of her home, does not have any overhead other than a toll free line and her computer, and can afford to give back to her loyal clients (I have been with her for nearly 10 years.) The previous poster who implied that TA's who rebate will not provide good customer service should not make blanket statements. I agree that if you do not know with whom you are dealing, be very careful; but if you know your TA or have received an excellent referral from someone you trust, there should be no problem. Word of mouth can be the best or worst advertisement for any business, including TA's.

[CoachT]

And quite frankly discounting is the quickest way to go out of business when you are not dealing in volume. In all honesty, only 20% of cruise buyers will purchase from the same agent for the second cruise. If you found a great one, good for you. However in the vast majority of cases, the discounters are dealing in volume and cannot provide the same amount of service as those who do not discount and in fact charge for using their service.

[jagoffee]

And quite frankly discounting is the quickest way to go out of business when you are not dealing in volume. In all honesty, only 20% of cruise buyers will purchase from the same agent for the second cruise. If you found a great one, good for you. However in the vast majority of cases, the discounters are dealing in volume and cannot provide the same amount of service as those who do not discount and in fact charge for using their service.

 

From my experience it is not necessarily true that they cannot provide the same amount of service. I believe the key is finding a TA that does a large amount of business with the cruise line that you are booking. A high volume Celebrity TA will not necessarily be the same as a high volume Princess TA. A high volume TA is often willing to make less of a profit on an individual cruise so that they can maintain a high volume with a particular cruise line. They often receive significant benefits associated with the volume. Also I would never use a TA that charges for changes, cancellations, or any other services. And of course the amount of OBC that you receive depends on the overall price of the cruise thus it is variable.

[CoachT]

From my experience it is not necessarily true that they cannot provide the same amount of service. I believe the key is finding a TA that does a large amount of business with the cruise line that you are booking. A high volume Celebrity TA will not necessarily be the same as a high volume Princess TA. A high volume TA is often willing to make less of a profit on an individual cruise so that they can maintain a high volume with a particular cruise line. They often receive significant benefits associated with the volume. Also I would never use a TA that charges for changes, cancellations, or any other services. And of course the amount of OBC that you receive depends on the overall price of the cruise thus it is variable.

Well from my POV, you get what you pay for. If you think hiring a professional is expensive, you should see how much you spend when you hire an amateur.

[Sail Girl]

That isn't how it happens with TAs and cruise buyers. They will go the next TA offering a lower price.

 

TAs that offer OBC are working on very thin margins and dealing in volume. They charge change fees and will reduce the amount of OBC if the price goes down because their commission drops.

 

If you need real customer service and other reasons people still use great TAs, good luck when dealing with a rebater. Then there is also getting on the ship only to find your promised OBC not there.

 

 

CoachT,

What you stated in your last sentence is what I'm concerned about - not getting the promised OBC credited to my account. Seems there is no recourse except to write a bad review about that TA on the website on which the TAs compete by quoting cruise prices/perks.

 

I've never utilized or needed services other than booking, getting documents and purchasing travel insurance from my local TA. In fact, she hasn't offered additional OBC or other perks when I've booked onboard and she has gotten credit for the booking. Won't be using her again, and am looking for a new TA. Have not decided on one yet.

[billie5]

TAs that offer OBC ..... charge change fees and will reduce the amount of OBC if the price goes down because their commission drops.

 

CoachT is simply spreading misinformation. I have dealt with a number of discount TAs for most of the past 15 years. The ones I deal with do not charge change fees and do not reduce the amount of OBC if the price goes down. In fact, even the statement about their commission dropping is incorrect.

 

I do recommend that if you are dealing with an unfamiliar on-line TA, do a search under the agency name and, say, "review." Heck, I do that most of the time even when I am just purchasing an item from an unknown on-line dealer, and most of what I buy (except for groceries, of course) is on-line. Dealing with the cruise line is fine if you do not mind (in most cases) paying somewhat more for your cruise.

 

Bill

[Sail Girl]

CoachT is simply spreading misinformation. I have dealt with a number of discount TAs for most of the past 15 years. The ones I deal with do not charge change fees and do not reduce the amount of OBC if the price goes down. In fact, even the statement about their commission dropping is incorrect.

 

I do recommend that if you are dealing with an unfamiliar on-line TA, do a search under the agency name and, say, "review." Heck, I do that most of the time even when I am just purchasing an item from an unknown on-line dealer, and most of what I buy (except for groceries, of course) is on-line. Dealing with the cruise line is fine if you do not mind (in most cases) paying somewhat more for your cruise.

 

Bill

 

Thanks, Billie,

I'll do a search on the agencies that responded to my request for quotes.

 

 

Thanks, also, to all of you who have responded on this thread.

[Jade13]

According to my personal cruise agent, she makes 10% commission off of any RCCL cruise (that includes RCI and Celebrity.) She provides me with OBC, which is her way of discounting the cruise price, something she cannot do because of the rules imposed on her by the lines. She is taking the OBC out of her commission and if the price drops, so will the OBC, for obvious reasons. She works out of her home, does not have any overhead other than a toll free line and her computer, and can afford to give back to her loyal clients (I have been with her for nearly 10 years.) The previous poster who implied that TA's who rebate will not provide good customer service should not make blanket statements. I agree that if you do not know with whom you are dealing, be very careful; but if you know your TA or have received an excellent referral from someone you trust, there should be no problem. Word of mouth can be the best or worst advertisement for any business, including TA's.

 

Our TA can provide a direct discount but we just requested that they pre-pay our gratuities on Celebrity. On Azamara we just take the discount instead of OBC.

[Jade13]

CoachT,

What you stated in your last sentence is what I'm concerned about - not getting the promised OBC credited to my account.

 

That is easy. Have them put it on their statement and make sure they send a pdf direct from the cruise line showing full payment and the OBC. You can also call the cruise line and guest services will answer a general question such as whether "OBC is on the booking".

[CoachT]

CoachT is simply spreading misinformation. I have dealt with a number of discount TAs for most of the past 15 years. The ones I deal with do not charge change fees and do not reduce the amount of OBC if the price goes down. In fact, even the statement about their commission dropping is incorrect.

Please provide proof that I am spreading misinformation.

 

It is quite obvious that if a price drops, the commission will drop as well since commission is based on the cruise fare. There are many TA's that DO charge for changes and that will reduce the amount of OBC if the price goes down.

 

Heck the top 100 TAs as listed in Conde Nast charge a consultation fee on top of the price of the travel and many of those are in fact closed to new business and never have to discount.

 

From my own personal experience, on every single cruise I have been on in the past two years, there has always been someone at Guest Relations asking about their promised onboard credit from their TA. And in every case, the guest has been told to call their TA about it.

[jagoffee]

Please provide proof that I am spreading misinformation.

 

It is quite obvious that if a price drops, the commission will drop as well since commission is based on the cruise fare. There are many TA's that DO charge for changes and that will reduce the amount of OBC if the price goes down.

 

Heck the top 100 TAs as listed in Conde Nast charge a consultation fee on top of the price of the travel and many of those are in fact closed to new business and never have to discount.

 

From my own personal experience, on every single cruise I have been on in the past two years, there has always been someone at Guest Relations asking about their promised onboard credit from their TA. And in every case, the guest has been told to call their TA about it.

 

That doesn't mean that they did not get it. The fact that TA OBC may not show up on the on board account for several days must cause a lot of confusion. As long as I have an invoice clearly defining the OBC I do not worry about it. I have always received it and I have always received great service from the TA as well. I will admit that I do not need much from the TA.

 

IMO anyone that is actually paying a TA a consultation fee on top of the price for a cruise is pretty much wasting their money unless they really need something unique. I cannot even imagine what it would be that is worth an extra service charge.

[Leesie6351]

I have used a discount TA for 15 years. For cruise lines that allow discounts, she gives me 10%; for cruise lines such as X and RCI that don't she gives me the equivalent amount in OBC. Her company does not charge change fees and we have always had excellent service-that is why we use them. We have received $600 in OBC for our 7/9/11 cruise on the Connie.

 

As to how they can stay in business- remember that TA commissions are based on the volume of business they give the cruise line and also remember that sometimes they get discounts on the cabin price as well so they can pass that lower rate on to you or retain it as their "profit.

 

Our TA has both a website or phone you can call-they have a real brick and mortar office in Alburquerque NM. I do all my bookings with the same agent there and have referred several people there and everyone is very happy with their service sooooooooooooooo-just because they are discount does not mean you will get poor service.

[clivep]

That doesn't mean that they did not get it. The fact that TA OBC may not show up on the on board account for several days must cause a lot of confusion. As long as I have an invoice clearly defining the OBC I do not worry about it. I have always received it and I have always received great service from the TA as well. I will admit that I do not need much from the TA.

 

IMO anyone that is actually paying a TA a consultation fee on top of the price for a cruise is pretty much wasting their money unless they really need something unique. I cannot even imagine what it would be that is worth an extra service charge.

 

Just because it's on the invoice doesn't mean the TA is going to honour it!!! See my recent post at http://cruiseforums.cruisecritic.com/showthread.php?p=26454712#

 

I'll be getting the OBC now but only because I pursued it.

[billie5]

I am not going to get into a pointless squabble, CoachT, but I will answer your question. You state discount TAs which offer OBCs will charge change fees. Than can not be correct since my various on-line TAs have not done that, nor have the TAs from many other posters above. Obviously, some may, many do not, and one can always choose those who do not.

 

You state that these TAs will also reduce the OBCs. Mine have not so that statement also can not be true. Evidently, some may, some do not. This was the misinformation I was referring to.

 

Bill

[Jade13]

I am not going to get into a pointless squabble, CoachT, but I will answer your question. You state discount TAs which offer OBCs will charge change fees. Than can not be correct since my various on-line TAs have not done that, nor have the TAs from many other posters above. Obviously, some may, many do not, and one can always choose those who do not.

 

You state that these TAs will also reduce the OBCs. Mine have not so that statement also can not be true. Evidently, some may, some do not. This was the misinformation I was referring to.

 

Bill

 

Bill, I agree with you that there are on-line TA's who do not charge change fees. No argument from me.

 

However, if one (prob not your situation) has a huge price drop on the cruise the TA will have to adjust their OBC since it is part of their commission and they are not going to give a client more than they make. However, the OBC might be an amenity for a group booking and coming from a travel consortium such as "Ensemble", etc, and a price drop would likely not affect that OBC.

[CoachT]

To answer the OP's question, YES Celebrity does limit the amount of OBC or rebate a TA can give. TA's caught breaking their policy can and have lost their ability to sell Celebrity.

[jagoffee]

To answer the OP's question, YES Celebrity does limit the amount of OBC or rebate a TA can give. TA's caught breaking their policy can and have lost their ability to sell Celebrity.

 

How do you know this? Based on my quotes there does not seem to be a limit, but I am not sure how one would know. I suppose one could assume that the quote with the highest amount of OBC is the high limit, but it is a strange amount and the OBC being offered varies a lot.

 

You have made a statement that appears to be certain. Are you a TA or have you actually seen something in writing stating a limit? If yes, what is the percentage of the limit? That would be good to know.

 

Also I am not sure how Celebrity would the amount of any rebate that a TA would send to you.

 

Thanks.

[Jade13]

How do you know this? Based on my quotes there does not seem to be a limit, but I am not sure how one would know. I suppose one could assume that the quote with the highest amount of OBC is the high limit, but it is a strange amount and the OBC being offered varies a lot.

 

You have made a statement that appears to be certain. Are you a TA or have you actually seen something in writing stating a limit? If yes, what is the percentage of the limit? That would be good to know.

 

Also I am not sure how Celebrity would the amount of any rebate that a TA would send to you.

 

Thanks.

 

Plus, our agent just discounts the cruise vs giving OBC.

[jagoffee]

Plus, our agent just discounts the cruise vs giving OBC.

 

I would not think that a TA would be able to actually discount a Celebrity Cruise. Doesn't your payment going directly to Celebrity?