What kind of OBC for booking a PS should we expect?

[GigemAggies]

I have been reading about all kinds of huge OBC offered by TA's for bookings and I was wondering what kind of OBC one might expect for booking a Penthouse Suite for a 14 day cruise?

[lucinjo]

Totally depends on the TA and how they determine OBC. They have guidelines from Celebrity regarding OBC and other perks that they are supposed to follow. Some offer a flat amount by class (inside, balcony, suite), others a flat amount by cruise length. Some offer free gratuities. Some offer a "rebate" of a percentage of price paid. For a long cruise in a penthouse I would think a percentage of price would net you out the most.

[trabeler]

OBC offers are really just a percentage of the commissionable fare. My approach is to take the total fare, subtract the taxes/port fees multiplied by 3, then target 7-12% of the remainder as OBC. The 3x multiplier is an approximation of the difference in the cruiseline's reported taxes/fees and what I've seen on TA invoices.

 

If a TA has group space on the sailing, you may see OBC on the higher end of the scale and sometimes up to 15%.

[GigemAggies]

Ok. Thanks for the reply. I had a feeling our $400 OBC, which computes to 2% was quite low. I guess we'll definitely shop around for our next cruise. We haven't made our final payment yet. Is it too late to switch TA's if we can get more OBC or gratuities, etc...?

[Lois R]

Ok. Thanks for the reply. I had a feeling our $400 OBC, which computes to 2% was quite low. I guess we'll definitely shop around for our next cruise. We haven't made our final payment yet. Is it too late to switch TA's if we can get more OBC or gratuities, etc...?

 

A Travel Agent already has the booking? Yes, you can change since

final payment hasn't been made but I do hope they won't have an

issue with releasing it to another TA for you:eek:

[cruisegirl1]

Ok. Thanks for the reply. I had a feeling our $400 OBC, which computes to 2% was quite low. I guess we'll definitely shop around for our next cruise. We haven't made our final payment yet. Is it too late to switch TA's if we can get more OBC or gratuities, etc...?

 

As mentioned, many agents will give a % of the cost ( minus port fees/taxes) but a with a max limit. Perhaps that is what you are experiencing with your agent.

good luck

 

m

[CoachT]

Ok. Thanks for the reply. I had a feeling our $400 OBC, which computes to 2% was quite low. I guess we'll definitely shop around for our next cruise. We haven't made our final payment yet. Is it too late to switch TA's if we can get more OBC or gratuities, etc...?

No TA is going to release your booking that they have been working on to another TA. You may cancel, but be aware while some do not charge a cancel fee, many agencies do. We collect a cancellation fee up the amount of lost commission no matter why a client cancels. If it is for a reason covered by insurance they can make a claim with their insurance company. We choose to run a for-profit business as do many other agencies.

[gimletgal]

No TA is going to release your booking that they have been working on to another TA. You may cancel, but be aware while some do not charge a cancel fee, many agencies do. We collect a cancellation fee up the amount of lost commission no matter why a client .cancels If it is for a reason covered by insurance they can make a claim with their insurance company. We choose to run a for-profit business as do many other agencies.

 

Sorry, but I would not do business with ANY TA who charges a cancellation fee!

[Texed]

Sorry, but I would not do business with ANY TA who charges a cancellation fee!

 

Ditto! :)

[drarill]

Sorry, but I would not do business with ANY TA who charges a cancellation fee!

Mine doesn't charge a cancellation fee!!

[tfrcal]

No TA is going to release your booking that they have been working on to another TA. You may cancel, but be aware while some do not charge a cancel fee, many agencies do. We collect a cancellation fee up the amount of lost commission no matter why a client cancels. If it is for a reason covered by insurance they can make a claim with their insurance company. We choose to run a for-profit business as do many other agencies.

 

I can understand a small fee, perhaps $50 per person, but the amount of lost commission. Let's just say I am amazed your agency is still in business.

[orchestrapal]

Sorry, but I would not do business with ANY TA who charges a cancellation fee!

 

DITTO!

We have done business with multiple TA's and have NEVER been charged any cancellation fee and never would pay one..

[CoachT]

Sorry, but I would not do business with ANY TA who charges a cancellation fee!

 

That is okay, we refuse to take on business of any client who expects us to give back any of our commission in the form of OBC!

[jagoffee]

That is okay, we refuse to take on business of any client who expects us to give back any of our commission in the form of OBC!

 

No need to refuse because you won't get that business, but your statement does have a nice "marketing" twist.

 

Good luck in the future.

[jagoffee]

OBC offers are really just a percentage of the commissionable fare. My approach is to take the total fare, subtract the taxes/port fees multiplied by 3, then target 7-12% of the remainder as OBC. The 3x multiplier is an approximation of the difference in the cruiseline's reported taxes/fees and what I've seen on TA invoices.

 

If a TA has group space on the sailing, you may see OBC on the higher end of the scale and sometimes up to 15%.

 

That sounds about right for a Princess cruise. Do you also get the same amount on a Celebrity Cruise?

[johhnnyt]

I have been reading about all kinds of huge OBC offered by TA's for bookings and I was wondering what kind of OBC one might expect for booking a Penthouse Suite for a 14 day cruise?

 

I think its very cruise specific and time specific. I would think if you book way out (9 months to a year in advance) Celebrity or the TA is going to be maximizing profit as rates are generally higher, so their net gain is higher, so they should be able toffer you a better OBC.

 

That being said, I've seen them all over the place last cruise they gave us $450 for a concierge class, next cruise $800 for a sky suite, cruise before $500 for a celebrity suite, while friend in royal suite got $0.

 

I've always found that best time to ask is after rate has dropped, and you already booked it. For example on our cruise coming up RS (PH has dropped % wise even more) has gone from

Price Created Updated

$ 7,599 2012‑03‑15 2012‑07‑12

$ 7,799 2012‑07‑13 2012‑07‑23

$ 7,899 2012‑07‑24 2012‑08‑01

$ 8,099 2012‑08‑02 2012‑11‑13

$ 6,999 2012‑11‑13 2013‑02‑16

$ 5,999 2013‑02‑16 2013‑02‑18

$ 6,999 2013‑02‑19 2013‑02‑26

$ 7,599 2013‑02‑27 2013‑03‑02

$ 5,949 2013‑03‑02 2013‑03‑04

$ 7,599 2013‑03‑04 2013‑04‑16

$ 6,999 2013‑04‑17 2013‑04‑25

$ 5,999 2013‑04‑26 2013‑05‑03

$ 5,499 2013‑05‑03 2013‑05‑06

$ 5,299 2013‑05‑07 2013‑05‑15

$ 4,799 2013‑05‑15 2013‑05‑27

So if I booked it at say $7K and now price is $4799, it would be an ideal time to ask for some extra OBC

[trabeler]

That sounds about right for a Princess cruise. Do you also get the same amount on a Celebrity Cruise?

 

Around the same. Our previous experience has been 7-14% on Princess, 6-16% on Celebrity, and 8-13% on Royal Caribbean. The higher end tends to be group bookings. Sometimes the TA will discount the cabin instead of OBC, so I include any discounts into the percentage savings.

[Oville]

So if I booked it at say $7K and now price is $4799, it would be an ideal time to ask for some extra OBC

 

If the price has dropped that much pre-final payment, it's time to cancel and rebook with a TA that will give you around a 10% OBC.

[miched]

Are the rules different to transfer between TA's than from Celebrity to a TA?

 

I was told that if I book thru Celebrity I have 60 days to transfer to a TA. It is also now stated on their website.

 

.

[jagoffee]

Around the same. Our previous experience has been 7-14% on Princess, 6-16% on Celebrity, and 8-13% on Royal Caribbean. The higher end tends to be group bookings. Sometimes the TA will discount the cabin instead of OBC, so I include any discounts into the percentage savings.

 

Thank you. Do you typically us the same TA for both Princess and Celebrity?

[johhnnyt]

If the price has dropped that much pre-final payment, it's time to cancel and rebook with a TA that will give you around a 10% OBC.

 

Unfortunately its rare that it happens inside the 90 day penalty free window, thats why I have found booking closer to cruise date is far better option unless you're set in stone which cabin you'll get

 

Also booking with the TA's that do the highest volume bookings with Celebrity, you usually get better OBC

[trabeler]

Thank you. Do you typically us the same TA for both Princess and Celebrity?

 

I have one primary TA that I use for all bookings that are outside of final payment, since they don't charge any cancel/change fees and their service and response time is excellent. That agent's OBC isn't at the top end of the scale, but for me the service makes up for the difference.

 

For bookings made inside final payment (last minute decision cruises), we use a large online agency that often has group space and offers OBC at the higher end of the scale. However, they charge fees and are not as easy to work with post booking (you have to go through a customer service dept and not the original agent). Since we only use them when we're past final payment, the additional fees aren't a factor and we seldom have changes since we're so close to sailing date.

 

For awhile I tried to shop each booking around but I'd rather have a relationship with a primary agent than constantly try to squeeze the last drop of OBC from a booking.

[jagoffee]

I have one primary TA that I use for all bookings that are outside of final payment, since they don't charge any cancel/change fees and their service and response time is excellent. That agent's OBC isn't at the top end of the scale, but for me the service makes up for the difference.

 

For bookings made inside final payment (last minute decision cruises), we use a large online agency that often has group space and offers OBC at the higher end of the scale. However, they charge fees and are not as easy to work with post booking (you have to go through a customer service dept and not the original agent). Since we only use them when we're past final payment, the additional fees aren't a factor and we seldom have changes since we're so close to sailing date.

 

For awhile I tried to shop each booking around but I'd rather have a relationship with a primary agent than constantly try to squeeze the last drop of OBC from a booking.

 

Thank you. I was just curious because unlike you I find that my TA discount/OBC on Princess is larger than on Celebrity. My relationship with this TA started with great pricing on Princess cruises and I value the relationship so I moved my Celebrity business as well.

[GigemAggies]

Thanks for all of the feedback! Very helpful. Our TA increased our OBC. CC posters save the day again!