TA Rebates

[WesW]

Hi JoAnne, thanks for your very thoughtful post.

 

Rally Dave and CWN +1

 

Believe what matters in the end, is that each of us like our travel agents for different reasons (level of service, competitive rebate, extra leverage brought to the table by belonging to one of the top travel consortium's). In the best of this travel world, we strongly prefer (and found) a TA who provides tip top service coupled with a tip top rebate.

[tallship]

Hi JoAnne, thanks for your very thoughtful post.

 

Rally Dave and CWN +1

 

Believe what matters in the end, is that each of us like our travel agents for different reasons (level of service, competitive rebate, extra leverage brought to the table by belonging to one of the top travel consortium's). In the best of this travel world, we strongly prefer (and found) a TA who provides tip top service coupled with a tip top rebate.

 

 

Completely agree with JoAnne, Rally, and cwn. I still work, have limited time to cruise and want to get the best deal I can for my hard earned holiday dollar. If I do not get a rebate or OBC from my TA, then I DO expect that my TA will go to bat for me when things go awry or will provide me an upgrade every 10 cruises or so.....in fact, so many people on our last 2 sailings told us of complementary upgrades provided by either Regent or their TA that we started to wonder that once you sailed alot, that it in fact worked against you....

[Travelcat2]

The cruise lines will decide what they want to do in terms of rebates, etc. Don't think that, in this case, they could care what passengers think. As long as they are selling cruises and making money (which is questionable with Regent based on available date), things will remain the same. IMO, this is a debate between TA's. Those that currently do not rebate have great arguments why they do not. Those that do really do not have to say much because, until and unless Regent changes things, they are doing fine.

 

I know understand why people who are not TA's enjoy this thread so much. We are learning the inside workings of agencies -- they know what we think and --in the end, IMO, those TA's who do not rebate will lose. When a person is spending upwards of $20K, for a cruise, the bottom line counts.

[cruiseluv]

The cruise lines will decide what they want to do in terms of rebates, etc. Don't think that, in this case, they could care what passengers think.

 

Well, if they don't care what we as passengers think , or how we will react, there might be a surprise in store for them. If agents stopped offering rebates, I doubt I would continue cruising, or at least not as often. There are many other options for vacations that would provide much more value. I don't think that demand for cruising is inelastic.

[Travelcat2]

Well, if they don't care what we as passengers think , or how we will react, there might be a surprise in store for them. If agents stopped offering rebates, I doubt I would continue cruising, or at least not as often. There are many other options for vacations that would provide much more value. I don't think that demand for cruising is inelastic.

 

To clarify my last post, I do not think that the cruise lines care what passengers think about TA rebates as much as they care about their relationships with TA's and about TA's who give too large of a rebate. TA's do care about their clients who may decide to leave their agency in order to receive a higher rebate. For some people, a 5% difference in a TA rebate can mean whether or not they can afford their next Regent cruise. While we have no intention of changing TA's, we do understand why some people do.

 

This is just an opinion and I could certainly be totally off base.

[ChatKat in Ca.]

i left my last TA when I paid full fare for a trip; All I got was a paper ticket; It was for a special occasion and he knew the reason we booked it. I didn't want a rebate; Most of the local TA's at least give ground transport to the airport. I did not even get a luggage tag. I have now had the same TA for about 8 years.

[rlimbacher]

Regent, Oceania Cruises Institute New Anti-Rebating Policy

By Theresa Norton Masek

April 24, 2012 10:32 PM

 

 

Prestige Cruise Holdings, which owns Regent Seven Seas Cruises and Oceania Cruises, is instituting a new anti-rebating policy effective May 1. In a letter to travel agents, the companies said that rebating is “detrimental to our collective economics,” results in lower margins for agents and confuses consumers.

“In recent weeks, we reached out to many of our agency partners to solicit opinions and suggestions on how to address the important subject of rebating,” the company said in the memo announcing the policy. “What came through loud and clear was that the agency community is looking for more leadership from suppliers to preserve pricing integrity and to reduce the advantage some agencies have over others in being able to compete for business via price once another agency has already invested considerable resources to secure and close a sale. We learned that it’s not just the mom-and-pop agencies that are adversely impacted by rebating … that many large agencies are reluctant rebaters who would much prefer to reinvest a portion of their commission into servicing their existing business and to actively promote and secure new business rather than giving it away to savvy shoppers in rebating situations.”

The new policy will prohibit travel agencies from advertising or promoting Regent and Oceania cruises “at a price or at a percentage off which is less than the cruise line’s published price or the pricing contained in an active group contract issued to the travel agency. Published price is defined as that which appears on the cruise line’s website.”

A travel agency may advertise amenities provided their total value does not exceed 5 percent of the cruise fare being advertised, the policy states. The policy also states that if a reservation is transferred to another travel agency (or is cancelled and rebooked) within 30 days of the reservation date and before final payment, the receiving travel agency will be paid a 10 percent commission. If a reservation is transferred to a travel agency (or is cancelled and rebooked) more than 30 days after the booking was made or anytime inside the final payment window, a 10 percent commission will be paid to the originating travel agency and no commission will be paid to the receiving travel agency.

The cruise lines said they reserve the right to reduce commissions and/or marketing funds, cancel or deny group contracts or take any other actions it deems appropriate if a travel agency violates this policy. “We realize that there are many different viewpoints on the issue of rebating and that any cruise line’s policy will be met with praise by some and criticism by others,” the Prestige policy memo reads. “Hopefully, having developed this policy with input from numerous travel partners, we’ve found an approach that will significantly reduce rebating and protect the economics of those agencies committed to building their business based on the quality of the service they provide their customers.”

[JoAnne B]

Okay. so, are Regent's beancounters just trying to alienate clients or are they so arrogant they forget we can choose other lines that do allow rebates?

 

JAB

[Travelcat2]

Most of us remember when that took effect. The key wording in that statement was "advertising". TA's cannot advertise a rebate above a certain level, however, many posters have stated that their TA's still give high rebates but do not advertise it. Right now the company to watch is Carnival who will not allow rebating at all (believe it is only for bookings on Carnival ships at this time). This could easily be extended to all of the ships owned by Carnival -- including their luxury line -- Seabourn.

[A Tucson Guy]

WOW!!! 210 reply's. I kinda think if you read all the posts, all the answers/comments/questions are all there. Great information but this thread needs to die away. There is more and different info that I need from you folks and unfortunately my fingers keep going back to this one. I need more and different info from ya. One important example for me is "What is the best flavored martini and how many should I consumer?". Get my point? Remember, if this one doesn't die soon, we from Maui carry six shooters and I will take appropriate action-hahaha (I gotta put in the hahaha as some/most you you may not "get" my oblique sense of humor).

Aloha and Mahalo (those of you that don't know all the meanings to the word "Aloha", ya just might just google it)

[rlimbacher]

Agreed, we should get back to more pressing matters such as bringing your own pepper grinder to CR, if yellow mustard can be found on Mariner, and how to manage their way in confusing La Veranda for breakfast! Sometimes we over analyze these experiences to the point where I do not know how we can even enjoy the cruise. I am more with going with the flow. If I cannot get a reservation in Prime 7, so what. That is why butlers were created. I do of course throughly enjoy every post. They really make me smile! Happy cruising! It is the only way to go!

 

See ya'll at the Blackjack table! :)

[cwn]

First this is a open forum...one can read it or not. If one is tired of the info, he doesn't have to open and read the thread....or add to the lenght of it.

 

TC is right...the key is "advertising" the rebate. Thanks for reminding us of that.

[Travelcat2]

lapeter: chocolate martini:D

[A Tucson Guy]

GIDDY UP!! But that is only half the answer. How many and don't tell me whatever I feel comfortable with? That's how I get in trouble. I need specific advice and that's an order!!! Remember I am certifiably insane before I start drinking! Oh- as to the other post, my six shooter is cocked- watch out!

PS- One of my favorites. Sometimes I just forget about ordering them.

lapeter: chocolate martini:D

[LoonCall]

Totally new to cruising so I'm a little stunned wading through all the comments on TA rebates. Just booked a 10 day Regent and was wondering if anyone had any luck with getting rebates after the booking was completed. I had no idea any such transactions took place.

[WesW]

Hi Loon, first welcome to cruise critic and a special welcome to the Regent board. If you booked directly with Regent you can call Regent and have them transfer your booking to the agent (e.g., one that offers a generous rebate) of your choice. If you booked directly with Regent, the travel consultant you booked with will get credit for your booking once transferred, then the TA you transfer the booking too will get the same commission as if you booked with this TA first.

[LoonCall]

 

I guess that's key...finding an agent who will rebate:)

First cruise was booked through a friend's TA and no rebate was offered

and again no perks with new company

[freddie]

Wes posted above: "If you booked directly with Regent, the travel consultant you booked with will get credit for your booking once transferred, then the TA you transfer the booking too (sic) will get the same commission as if you booked with this TA first."

 

Wes - You have mentioned this process previously; and I found it curious then, as I still do. What sort of "credit" does an in-house Regent travel consultant get when you have used his/her time to discuss and make a booking, which you then transfer to your outside TA who gets a full commission as if that TA had taken the same amount of time to work with you as the Regent travel consultant did?

 

As another poster suggested, this does not seem to make any particular sense as a business model for Regent. It appears that Regent is paying two people to work with you on the same booking.

 

Perhaps I am ignorant of cruise line business dynamics; but it would be logical to suggest that commissions are paid to TA's because those agencies are the ones who take the time and effort to work with the client, thereby relieving the cruise line of the requirement to do so. In my pre-retirement life as an in-house shark for a manufacturing company, I saw many instances of split commissions, etc. However, we did not pay both inside sales reps and outside manufacturers reps full commissions on the same sale.

 

What am I missing with respect to the process you describe?

 

Cheers, Fred

[rlimbacher]

Freddie,

 

It is called using the system. Same as "extreme" couponing at Walmart. Yes it is legal, it is just not being applied in the spirit of the intended use of commissions. When the travel agents rebated their airline commissions years back, we considered it double dipping and reduced their commissions since we were already offering discounts to our corporate clients and the purpose of commission to our agency partners was not to further discount our product in order to gain clients.

 

Travel agents are not purchasing cruises like a car dealer and do not carry inventory. They are acting as an appointed agent of the airline or cruise company and therefore represent that product and they way it should be distributed. I pulled many travel agents authority to issue our airline tickets for this exact reason.

 

I would think we would be respectful of Regent's discounts and offerings and abide by their request of no more that a 5% rebate.

[tallship]

Freddie,

 

It is called using the system. Same as "extreme" couponing at Walmart. Yes it is legal, it is just not being applied in the spirit of the intended use of commissions. When the travel agents rebated their airline commissions years back, we considered it double dipping and reduced their commissions since we were already offering discounts to our corporate clients and the purpose of commission to our agency partners was not to further discount our product in order to gain clients.

 

Travel agents are not purchasing cruises like a car dealer and do not carry inventory. They are acting as an appointed agent of the airline or cruise company and therefore represent that product and they way it should be distributed. I pulled many travel agents authority to issue our airline tickets for this exact reason.

 

I would think we would be respectful of Regent's discounts and offerings and abide by their request of no more that a 5% rebate.

 

I am sorry but your response doesn't really answer the question posed By Freddie

 

I do not get the double dipping part either. For example, if I book a cruise onboard a ship, they transfer it to my TA. Now the person who did the work is the cruise consultant on board as they did the work but the TA does not. How would I be double dipping?

 

Sorry if I seem a bit confused

[rlimbacher]

The bottom line is that commissions are not intended to be rebated back to the customer. The actions of a few always seem to affect the rest. Regent has asked that TAs not rebate back more than 5% and several are proud to say they have found TAs that do not represent the product they are fortunate to sell. I was simply comparing it to the airline industry and not who is doing the work and research on each booking. I just expected more out of a Regent passenger not to treat the product like a Carnival cruise.

 

Again, commissions are not "incentives" such as a car dealer.

 

I think we have all made our points. It is sort of like the Dems and GOP

 

Diversity makes the world go round. No hard feelings on agreeing to disagree. We all love our Regent!

 

Happy sailing!

[rallydave]

 

I would think we would be respectful of Regent's discounts and offerings and abide by their request of no more that a 5% rebate.

 

So let me get this straight rlimbacher, I as the customer need to be respectful of Regent's discounts................5% rebate but, Regent doesn't need to be respectful of their customers when they overcharge for a hotel, excursion, etc nor do they need to respond to issues in a timely manner or provide compensation to the customer for something that goes awry?

 

I think not!! Business and vacation relationships need to be a two way street with both sides respecting the others rights and issues. Should I tell my TA who is offering me a $5,000 rebate for a $50,000 cruise no thank you, only give me $2,500 and not be respectful of my TA's wishes??

 

While of course we can agree to disagree but, it seems that your scenario is a one way street while most of us would prefer a win/win fair result with both sides ending up happy and the resulting transaction being fair and reasonable to BOTH sides. Think most of the cruisers here will disagree with you while the TA's will agree???

[rlimbacher]

rallydave,

 

You are correct. I totally blame those TAs that are violating their agreements with there vendors. Coming from the airline side, it just makes me mad when our TAs would do this with AA. I cannot blame the passenger, but I just can't do it.

[tallship]

I just expected more out of a Regent passenger

 

now this statement confuses me more......

[rlimbacher]

Don't be confused :)

 

My mouth sometimes speaks before my brain! Totally off base with that comment and apologize. I need to reactivate my filter!