TA OBC cap?

[ludde]

The TA I usually use says that since recently, RCCL has a cap limiting the amount of shipboard credit the TA may offer. The TA says there's a maximum of $200/room.

 

When I ask other TA's they say they never heard of such a cap. Other TAs gave me quotes in the $250 - $400 range.

 

Anyone knows more?

[Clarea]

The TA I usually use says that since recently, RCCL has a cap limiting the amount of shipboard credit the TA may offer. The TA says there's a maximum of $200/room.

 

When I ask other TA's they say they never heard of such a cap. Other TAs gave me quotes in the $250 - $400 range.

 

Anyone knows more?

Our TA has not mentioned anything about a limit, and she recently gave us more than $200.

[nelblu]

Never heard of any caps on OBC's.

[uksimonusa]

I think Carnival has introduced a cap, but not RCI, as far as I am aware

[labeachcomber]

My TA recently said something to me of the sorts, "good thing you booked last week with me, because since then RC has lowered the amount of credit that we can give." Not sure if that's really true. Kind of don't think so. Why would Royal Caribbean care how much of the commission an individual TA was giving away as OBC?

 

I get it, a TA is a salesman trying to maximize profit just like we're trying to maximize savings. But to me it always feels a bit sketchy when I hear statements like this.

[Richiebaseball]

There is actually a limit that Royal Caribbean set as policy that was first released probably 3 years or so ago. Almost no one pays any attention to it and it would be almost impossible to enforce.

It's not at all surprising that most agents are not aware of the policy. Unfortunately there seem to be a lot of people in the business that don't really know about the business.

[CRUSINGFAMILY]

Some agencys have set margins when combining coupons and various different balcony discounts and Crown & Anchor coupons so they can still retain a certain percentage of profit. They are businesses remember :rolleyes: , however I don't recall any limits.

 

Happy Sailing

 

Brian J

[kccrzr]

A certain online TA has told me the same thing.

[krewzin]

Although we received a very generous obc from our TA, we too were advised that they (online TA) had to abide by new rules set forth by RCI just after we booked. According to them it started around mid March, and they are now limited as to how much they can offer.

[BekkaW]

I have not heard of this, how recently did they say it started?

[cruisnseas]

My TA recently said something to me of the sorts, "good thing you booked last week with me, because since then RC has lowered the amount of credit that we can give." Not sure if that's really true. Kind of don't think so. Why would Royal Caribbean care how much of the commission an individual TA was giving away as OBC?

 

I get it, a TA is a salesman trying to maximize profit just like we're trying to maximize savings. But to me it always feels a bit sketchy when I hear statements like this.

 

I can actually answer that!

 

The reason Royal has policies limiting obc or preventing "discounting" etc is in an attempt to keep things fair across TAs the little TAs cannot offer as much because they might get a lower commission and so the idea is to prevent all the big guys from putting all the little guys out of business, limits are put on what anyone can do.

 

Oh, and while they may (I don't really know) not actively enforce the policy I do know that I would come across really ticked off agents that were put on "No Book Status" for violating the compensation rules. So somehow they must have a way to track it. From my understanding these were egregious violators, however. And were probably warned multiple times.

[Cigar King]

We've had more than 200 from our TA before...and have it on an upcoming cruise as well.

[KPRH]

we`ve got $1000 for our August cruise, booked towards the end of Jan. Admittedly it is a 14 nighter, and we have a suite, but its still miles more than we have ever had before :D

[LMZinSC]

What are the rules regarding offering value-adds to guest

bookings?

A: There are basic rules regarding value-adds:

a - the value-add cannot be cash or a cash equivalent item

such as a gift card or gift check.

b - the value or perceived value of the item(s) cannot exceed

10% of the value of the cruise (cruise fare & NCCF).

c - the dollar amount or percentage cannot be advertised with

the exception of onboard credits.

d - onboard credits have the following maximum thresholds

per stateroom:

 

Cruise length

Brand 3-5 nights 6-9 nights 10+ nights

Royal Caribbean International 50 150 200

Celebrity Cruises 50 200 250

Azamara Club Cruises N/A 250 350

[labeachcomber]

What are the rules regarding offering value-adds to guest

bookings?

A: There are basic rules regarding value-adds:

a - the value-add cannot be cash or a cash equivalent item

such as a gift card or gift check.

b - the value or perceived value of the item(s) cannot exceed

10% of the value of the cruise (cruise fare & NCCF).

c - the dollar amount or percentage cannot be advertised with

the exception of onboard credits.

d - onboard credits have the following maximum thresholds

per stateroom:

 

Cruise length

Brand 3-5 nights 6-9 nights 10+ nights

Royal Caribbean International 50 150 200

Celebrity Cruises 50 200 250

Azamara Club Cruises N/A 250 350

 

So it sounds like the $200 is true. And the check to be mailed after you get home is illegal?

 

I'm curious. Is this info here publicly posted or are you a travel agent in the know?

[later]

I just received a quote which included a $525 on board credit.

[charmay]

Rci direct booking, said to me no more than$1000 per cabin at time of booking allowed.(uk)

Just out of interest,so why would you go with a ta then?

They can't be that much cheaper?

I have looked on lots of cruise sites.And booking direct comes out cheaper.

Unless it's better in the us to use TA's.

[LMZinSC]

So it sounds like the $200 is true. And the check to be mailed after you get home is illegal?

 

I'm curious. Is this info here publicly posted or are you a travel agent in the know?

 

I am a TA and copied it directly from the RCCL TA website. Sounds like there are a lot of TA's that are in violation of the published policy.

[39august]

So, please advise if this is a new policy for TA's or has this been the case for some time? And is the $150 for 7 nights just for OBC or for the total value of the TA's gifts, i.e. OBC, plus dinner, gratuities, etc.

[labeachcomber]

I am a TA and copied it directly from the RCCL TA website. Sounds like there are a lot of TA's that are in violation of the published policy.

 

This is so interesting. Not sure how much you can share or how much you are willing to share, but how is it then that TA's continue to offer onboard credit above the posted guidelines. I'd be curious to know, say, on a $5000 Allure cruise how much commission is given and how much of it is being given away as onboard credit. It seems like a travel agent giving away $500 OBC is probably giving up a significant chunk of his/her commission then???

[nelblu]

Some agencys have set margins when combining coupons and various different balcony discounts and Crown & Anchor coupons so they can still retain a certain percentage of profit. They are businesses remember :rolleyes: , however I don't recall any limits.

 

Happy Sailing

 

Brian J

 

Agree. My online TA offered a OBC, speciaty dinner, and a few other things. In their advertisement, it also offered paid gratuity, however, it was not available because of the C&A balcony discount.

[LMZinSC]

So, please advise if this is a new policy for TA's or has this been the case for some time? And is the $150 for 7 nights just for OBC or for the total value of the TA's gifts, i.e. OBC, plus dinner, gratuities, etc.

 

The policy has been in place since at least August of 2012. The $150 is just for OBC. The total value of all the "gifts" is not supposed to exceed 10% of the cost of the cruise.