Do you think Celebrity will implement a similar policy?

[Bridge Maven]

This is a new policy from Carnival Cruise Lines:

 

"As of August 1, 2012, travel agents will be forbidden from providing any cash-equivalent incentives to their customers such as onboard credit, specialty dining, etc., and instead will only be permitted to offer token gifts of no more than $25 in value".

 

 

Do you think Celebrity will implement a similar policy in the near future?

[MicCanberra]

This is a new policy from Carnival Cruise Lines:

"As of August 1, 2012, travel agents will be forbidden from providing any cash-equivalent incentives to their customers such as onboard credit, specialty dining, etc., and instead will only be permitted to offer token gifts of no more than $25 in value".

Do you think Celebrity will implement a similar policy in the near future?

 

I certainly hope not. :D

[Phxazzcruisers]

I don't understand why gives the right to dictate that. The TA cold then just give their client a cash credit onward the cost of the cruise instead. It doesn't make logical sense that they could regulate it.

[Bridge Maven]

I don't understand why gives the right to dictate that. The TA cold then just give their client a cash credit onward the cost of the cruise instead. It doesn't make logical sense that they could regulate it.

 

A travel agent is an agent for the cruise line, which pays their commission, so a cruise line has every right to decide what their agents can and can't do.

[Kevnzworld]

How are they going to know if your TA gives you a 3-5% cash kickback?, or pays for your ground transfers? This is a competitive business, and yes, they can police OBC, but little else. Ridiculous.

[Bridge Maven]

How are they going to know if your TA gives you a 3-5% cash kickback?, or pays for your ground transfers? This is a competitive business, and yes, they can police OBC, but little else. Ridiculous.

 

If a travel agent is dishonest enough to do something like that to the cruise line who pays their commission, I would not want to do business with them. A travel agent shouldn't have to be policed. They should have the integrity to do what is expected of them.

[Andy]

This is a new policy from Carnival Cruise Lines:

 

"As of August 1, 2012, travel agents will be forbidden from providing any cash-equivalent incentives to their customers such as onboard credit, specialty dining, etc., and instead will only be permitted to offer token gifts of no more than $25 in value".

 

 

Do you think Celebrity will implement a similar policy in the near future?

 

Hi Bridge Maven,

 

I believe Celebrity has something similar in place, whereby TA's cannot reduce the fare via rebating their commission. However, I believe that other methods, such as offering items such as OBC's, Specialty Dining & Gratuities remain available.

 

However, the Carnival decision definitely takes it a huge step further with the $25 limit. I wonder how the TA community is taking the news, as you would think it puts everyone on a level playing field. For some, that might be great news... for others ? not so much.

 

While I have absolutely no knowledge of any Cruise line plans, I'd be surprised if all cruise lines didn't move to a similar format, as it should add huge profits to their bottom line. I'm not saying it will happen immediately, as they may opt to wait and see how the Carnival Guests (and their other lines) react, but I'd suspect it may happen at some point.

 

I have strong feelings about this. For now, I will refrain from saying too much, as I'm not certain if all details are known, and I do not wish to stir the hornet's nest. What I will say, is that on the surface, I believe it's a game changer for both the Cruise lines and their Guests.

[Gig103]

Considering that for many people like myself, the only reason to use a TA is the savings or OBC. So, as an outsider, it seems to me like a slap in the face to hard working travel agents, as the cruise lines try to discourage TAs from competing with carnival.com, thus saving CCL the commissions when people book directly.

 

I am new to Celebrity so I can't answer the "do you think" question though.

[MicCanberra]

Hi Bridge Maven,

 

I believe Celebrity has something similar in place, whereby TA's cannot reduce the fare via rebating their commission. However, I believe that other methods, such as offering items such as OBC's, Specialty Dining & Gratuities remain available.

 

However, the Carnival decision definitely takes it a huge step further with the $25 limit. I wonder how the TA community is taking the news, as you would think it puts everyone on a level playing field. For some, that might be great news... for others ? not so much.

 

While I have absolutely no knowledge of any Cruise line plans, I'd be surprised if all cruise lines didn't move to a similar format, as it should add huge profits to their bottom line. I'm not saying it will happen immediately, as they may opt to wait and see how the Carnival Guests (and their other lines) react, but I'd suspect it may happen at some point.

 

I have strong feelings about this. For now, I will refrain from saying too much, as I'm not certain if all details are known, and I do not wish to stir the hornet's nest. What I will say, is that on the surface, I believe it's a game changer for both the Cruise lines and their Guests.

 

Agree, and I think I know what some of what you are thinking is all about. at the end of the day we can either live with their decision or walk away.

[Kevnzworld]

 

I don't see where it is "dishonest". The travel agent earns a commission, from the cruise, hotels etc, it's their commission ! Now I agree that the Cruise line can prohibit them from advertising a promotion, using their name ( Celebrity ), that Celebrity doesn't endorse.

It is not dishonest to pay for a clients car transfers, gratuities, etc as a thank you, and it can't be policed, so why try? Look at it this way. A client ( like me ) sails on multiple cruise lines, often, and is a good client. The agent customarily gives them something like I've described as a thank you . The agent now has to say, " sorry Mr client, you chose a Celebrity cruise, I can't pay for your airport transfers this time....or, Im barred from giving you $ for your gratuities this cruise, Celebrity demands that I keep 100% of the

commission. ". " I'll make it up to you next cruise when you sail with a different line ".

By the way, if all cruise lines mandate the same restrictions, it would constitute price fixing, and would be illegal. Maybe they will go the airline route and discontinue offering commissions to agents. They could do that.

[JLC@SD]

By the way, if all cruise lines mandate the same restrictions, it would constitute price fixing, and would be illegal. Maybe they will go the airline route and discontinue offering commissions to agents. They could do that.

It would not be price Fixing. Price fixing is where the different lines get together and set the same price for all the lines.

 

Each line can independently set their own internal fixed price ...independent of the other lines.

[JLC@SD]

Maybe they will go the airline route and discontinue offering commissions to agents. They could do that.

I think they want to keep the agents to sell cruises.

 

There is a great difference in cruises and agents are useful to educate their clients of the difference each line offers (ports of call, on board activities, food, accommodations etc.). Many cruisers are not even initially sure where they want to go.

 

With air travel...you know where you want to go and it is less complicated....... transportation from A to B.

[uktog]

Can someone explain to me how the cruiseline loses money. Customer buys cruise from a travel agent who gives then an incentive worth say $500. Does the agent not have to buy that incentive from the cruiseline so the incentive is not costing the cruiseline anything?

The travel agent may use commission to pay for this incentive, surely how the agent chooses to use what is their fees is down to them?

 

I am not sure that this rule might fall foul of UK/EEC anti competition rules where basically so long as it is legal, organisations can use whatever means they consider appropriate to attract customers. There is Unfair Contracts Terms regulations and placing such a clause in the contract between the cruiseline and the travel agency might be at risk of being challenged

[Denny01]

Before we all start posting on what we think TAs can still do such as pay insurance, gratuities, hotels, etc, please actually read the article:

 

http://www.cruisecritic.com/news/news.cfm?ID=4899

 

I'm not an expert, but apparently the Crulse Lines are aware of any type of benefit/payback/kickback a TA provides when selling one of their cruises to a customer. Always good to read about what you are going to chime in on....

 

I would love to see what Host Andy has to say about this later. Im not in the business, but I find it quite hard to believe Carnival is doing this for the customers' good as they say in the article....aiming us towards TAs that provide good service instead of lower pricing. My personal is this is to move cruisers to the actual Cruise Lines to make their reservations. Much as the Airlines have done.

 

I dont see Any benefits to the customer. Our bottom line cost is greatly impacted. I'm personally not interested in handing over my reservation to a TA to get a free bottle of wine (less that $25 bottle!) or another bag. I've booked directly many times, and find it much easier and efficient to book directly, but I go with a TA at times for......Money! Less of it going out means more of it for me.

 

If this becomes Line-wide, goodbye TAs. I use one for business because my company requires it, but I find my filights and hotel, then go to them and book what I selected. Silly isnt it. Its to cover my company, not me, and this is what this is. Good for the Cruise Line, not me.

 

Now, I'll eat all my words when Host Andy or anothe poster I trust comes on and explains why this is a good deal for us, and not the Cruise Line....until then, at least we have a thread subject that isnt about smuggling and what to wear to dinner!

 

Den

[trixiegolf]

If a travel agent can no longer offer incentives to book with them, the client will more than likely book directly with the cruise line. That will eliminate the commission the cruise line has to give to the travel agent, thereby saving them money.

[Host Anne]

I think the cruise lines have a LONG way to go to provide the proper customer service in order to take all the business away from TAs. Even if TAs can't provide extra perks, the basic service (taking care of the customer) is far superior at this point than it is through any cruise line customer service department I've had to deal with (mass market lines). That does have some value.

 

I do believe, however, that the cruise lines goals are ultimately to get people to book direct. But can you imagine what it would be like if all of us had to book direct? Cruise lines can't handle the direct bookings they get now. I can't imagine what it would be like if everyone booked direct.

 

Should be interesting to see where this all goes.

[Solstice23]

How are they going to know if your TA gives you a 3-5% cash kickback?, or pays for your ground transfers? This is a competitive business, and yes, they can police OBC, but little else. Ridiculous.

 

Actually

 

CLIA already has rules in place as you are not allowed to discount or give kick backs only offer Onboard credits etc but nothing limiting the amounts.

 

Carnivals new rule is a good one for fare play in the business to be honest, the industry should be promoting service from the moment the cruise is booked rather than agencies making little money to inflate specific products sales. Furthermore when someone is making more money on a booking rather then less from

Discounting I feel they would deliver better service from start to finish

 

Ground transfers,OBC and free specialty are great gifts that agents should be allowed to offer but within reason

[D-Town]

This move by Carnival Corp is an outrage!

It's a move to cut out TAs and move customers to book directly with them and cut out commission fees. Carnival saves $$$ and passengers lose $$$.

In the future, there will be little incentive for passengers to book with TAs rather than booking directly with Carnival.

All things being fairly equal, I'll opt for booking with RCI and getting OBC, pre-paid grats or travel insurance with them vs Carnival Corp.

Carnival is attempting to shift the paradiem in cruise booking.

I sincerely hope RCI sees this as a competitive advantage for their brands.

Please don't take the bait RCI.

Your bookings will soar, as Carnival Corp.'s decline.

[knittinggirl]

. . . as the cruise lines try to discourage TAs from competing with carnival.com, thus saving CCL the commissions when people book directly.

 

I am new to Celebrity so I can't answer the "do you think" question though.

 

My thought too.

[C 2 C]

I use a large online agency that is not based in Canada because the Canadian agency I used for years gave me squat... ie the New Carnival policy.

 

I find my own deals, cabin location, itineraries and price reductions.

Without the OBC however I would book through Celebrity not because of "Customer Service" but because of the longer hours and ability to make quick changes.

 

There is no improvement in this policy for passengers. Smaller TAs might prosper but I think a lot of people will opt for booking direct with the cruiselines for convenience.

 

I am very satisfied with the agency I use, love the perks and the additional loyalty rewards. It is now in the travel industry's best interest to steer passengers away from Carnival and towards RCL if they wish to continue the present marketing model.

 

 

[jackdiamond]

I believe that eventually all cruise lines will follow suit.

[Solstice23]

I use a large online agency that is not based in Canada because the Canadian agency I used for years gave me squat... ie the New Carnival policy.

 

I find my own deals, cabin location, itineraries and price reductions.

Without the OBC however I would book through Celebrity not because of "Customer Service" but because of the longer hours and ability to make quick changes.

 

There is no improvement in this policy for passengers. Smaller TAs might prosper but I think a lot of people will opt for booking direct with the cruiselines for convenience.

 

I am very satisfied with the agency I use, love the perks and the additional loyalty rewards. It is now in the travel industry's best interest to steer passengers away from Carnival and towards RCL if they wish to continue the present marketing model.

 

 

 

You didn't have the right agent then in Canada!

 

 

 

What you experienced is because many online agencies in USA break the rules of CLIA! Price on a cruise from one agency to another is supposed to be the same (unless that agency has a group of course and locked in prices lower at a specific time) agencies that discount huge to Intice business has ruined the service level of the travel business and also many times limits the service customers receive from a person selling product from a line that would not approve of the representation based on those service levels

[cruiseacecat]

Perhaps I am missing something here. If the goal of Carnival is to have the customer book directly with them to save having to pay commissions, are they not going to incur very large expenditures in terms of hiring more people (salaries plus benefits) Is this really going to save them money?

 

Anne

[CRUZBUDS]

It doesn't take much overhead to have a phone bank to take reservations -- it could be in India or even a U.S. prison. It's not much more than simple data entry.

 

One of our upcoming cruises has pre-paid gratuities of over $400 -- The lines can hire a lot of relatively low paid folks and still make a ton more money.

 

We tell our T/A what cruise we want and they tell us the price and what they are offering as a credit. I had a seen a good price on a cruise and was stressed the special would end. I e-mailed my T/A... and it took the better part of a day for them to respond. Without the extra incentives, I would have been very tempted to book directly with the line.

 

We don't need advice from an agent -- we're regulars on the boards -- so we already know it all ;)

[TeaBag]

I think this is bad news for travel agents.