Silversea to curb rebating with new credit card policy

[uk1]

"Silversea to curb rebating with new credit card policy (10/06/2005)

 

FORT LAUDERDALE -- Silversea Cruises is taking steps to “discourage” agency rebating by disallowing agents to charge a client’s credit card less than the full amount of the cruise purchase, the line said.

 

“Silversea believes rebating continues to hurt the distribution systems and the company is fully committed to providing a level playing field to agents,” the company said in a statement.

 

Although other cruise lines in the luxury segment have said they discourage or don’t allow rebating, Silversea is the first luxury line to publicly take a stance against the practice.

 

The credit card policy is effective for all bookings beginning Oct. 6, but Silversea said it would be “flexible” with the policy through Nov. 1.

 

“We’re not saying agents cannot ever rebate commission back to clients, but we want them to reevaluate their value and importance in today’s marketplace,” said Albert Peter, Silversea’s CEO. "

 

Original Text (requires login):

 

http://www.travelweekly.com/articles.aspx?articleid=48510

 

Jeff

[A Tucson Guy]

So now the TA will write you back a check for 5% when they get paid. Fine by me.

[meow!]

That was what our TA did last year, wrote us a check for 6%. This method is more beneficial to the customer than charging less on the credit card in the first place, as you get more credit card "points" (for the full amount), and the discounted money back!

[cinbeach]

My travel agent works very hard for her money and deserves every bit of her commission. I am frankly quite surprised that anyone would want to take money away from these hard working individuals.

 

I believe that if you can afford to travel on Silversea than you certainly can afford to let TA keep their commission. IMHO

 

Cindy

[meow!]

There are different types of agents and agencies. Presumably, a full service agent deserves full commission, I am not questioning that. There are also discount agencies that give the customer a fraction of their commission, and would act more or less as a ticketing agent (with the customers doing their own "leg work"). Both types are bonafide and have their place in a free market, as long as both sides (the agent and the customer) clearly understand what they are doing from the beginning.

 

Of course, there are agents who provide very good service and a discount. The customer will be pleased and will likely give them business in the future (lower profit for more sales or a long term relationship). There are also agents who charge full commission, and once the customer is "hooked", provide only nominal service. In this case, the customer will "learn a lesson" and be a lot more careful the next time. In the long run, the market will find its own level !