Travel Agent Question

[Ciref]

I have always done my own cruise bookings in the past. My wife and I are taking a Baltic cruise and I currently have a reservation with NCL. My wife wanted me to talk to a travel agent to see if we could get a better rate that way.

 

The travel agent was unable to get a better deal then what I booked. However the travel agent said that if I switch the booking to the travel agent, they will get me $100.00 of onboard credit in addition to the deal I have now.

 

I am satisfied with the deal I have with NCL however $100.00 in onboard credit is $100.00. But I do not want to do anything to jeopardize my reservation.

 

Is this something that is usually done by travel agents?

 

Could I wind up losing my current reservation with NCL if I authorize the travel agent to put the reservation in their name?

 

Are their any other issues I should be aware of?

 

Thank you,

 

Eric

[hawkeyetlse]

Is this something that is usually done by travel agents?

It's very common, and people transfer their bookings to a TA all the time with no adverse consequences.

 

You should ask around or Google for reviews before using a new TA, but chances are your TA is fine. Keep in mind that using a TA adds a middleman, which can make it a little slower and more complicated to add things or make changes to your booking. Some TAs also charge fees for modifications and cancellations, you should find out about that before committing.

 

Frankly, for $100 OBC I wouldn't necessarily bother with a TA. But it could also be a good opportunity to try out a new TA, without putting a lot of money on the line.

[Quilting_Cruiser]

As hawkeyetlse said, be sure to check to see if your prospective TA charges a fee if you want to make any changes or if you cancel.

 

I've always booked directly until a few months ago when a friend recommended a TA that is giving me a slightly better deal and $300 OBC for one of my booked cruises and $100 OBC for another. So far, the experience has been positive, so will book with her again if it continues to be positive.

[mabones]

I haven't used a TA in a very long time. I have a PCC who does everything for me. I think the only difference is the TA can get you a better OBC but you have to make you payments to them. When doing it online or through a PCC you can make your payments online yourself anytime any day. With the TA you have to wait until they are available, which is during working hours.

 

Hope this helps.

[Lido_Deck]

There is one particular cruise booking agency (that is the world's largest cruise booking agency) that books so many cabins they book them as a group. In fact, this agency books more cabins on NCL than NCL books themselves. They still book out of the same inventory and at the same fares that NCL agents book, but since they are combined into a group they get amenity points. With these amenity points they purchase OBCs and give them to their clients.

Edited September 19, 2016 by Lido_Deck

[Quilting_Cruiser]

I haven't used a TA in a very long time. I have a PCC who does everything for me. I think the only difference is the TA can get you a better OBC but you have to make you payments to them. When doing it online or through a PCC you can make your payments online yourself anytime any day. With the TA you have to wait until they are available, which is during working hours.

 

Hope this helps.

 

Depends on the TA. I just send mine an email and she charges my card. I'm not limited to "working hours."

[rjrpar]

We get 8-10% of the cruise fare from our online TA in onboard credit

 

 

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[vince_g]

We get 8-10% of the cruise fare from our online TA in onboard credit

 

 

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Yes, I just the % I received from my online TA and it's 9.55

 

How can you beat it?

[Ciref]

Thanks for the responses everyone. I feel that I now understand the implications of using a travel agent better and therefore have a better basis to make a decision.

 

Eric

[easyboy]

We get 8-10% of the cruise fare from our online TA in onboard credit

Is the rate an industry standard?

[MikeBTN]

Is the rate an industry standard?

 

No. Some will be higher, some lower. It also depends on the category you book - the lower the price, the lower the percentage. Also make sure your TA does not have any cancellation fees. A very popular online cruise TA charges an additional $24.95 in order to book and then has a $100 cancellation fee.

[Into Cruising]

Every agency regardless of size gets exactly the same pricing from NCL.

However each agency has it's own commission rate they receive based on their volume of business with NCL.

The commission rate is set and it goes across all categories of cabins. For sake of reference let's say an agency is set for 12% commissions. They will receive 12% of the cruise fare of every cabin sold. So they make more on a more expensive cabin. That is 12% of the cruise fare, not the total fare.

 

Agencies are told not to discount the prices, but they can offer incentives by giving away any or all of their commissions. The agency and the agent share the commission according to their own arrangement, some do 50-50, and some do as high as 90-10. The commission is all they have to entice a traveler to book with them.

 

Again for sake of reference at 50-50 an agent may only get $30 for selling an inside standard room, and maybe $300 or more for selling a Haven suite. In many cases the agency and the agent will split the incentive between them. In my own case, my agency refuses to give up any of their share, so any enticements come directly from my share of the commission.

 

You definitely are not going to get much when booking an inside gty cabin.

 

Now if a agency has booked Group rates or cabins, they will keep the TC credits and usually take the GAP points as extra commission, giving themselves a bit more enticement room. If they set up a group on behalf of a client, the client decides how to use the TC credit and GAP points. This is why many agencies set up many groups in hopes of being able to sell into them. Currently Groups warrant perks, not reduced prices. In many cases the price set up when you negotiate the group, is higher than the FIT pricing. So you sell a FIT and later move it into the group. The plus of a group is the TC credit and GAP points or other incentive, it is seldom price.

 

Schools of thought on this practice comes in two sizes. Many clients think that they are entitled to the agent/agencies money and request incentives. They claim the agent getting some money is better than none. This is tantamount to telling someone they do not deserve their weekly paycheck, and ask to have some of it given to you.

 

Others look up on the incentive as a token of appreciation from the agent /agency for doing business with them, and accept it graciously.

 

From my perspective we have far more of the first kind of client than the later.

 

This morning I read a blurb from a waitress who said if you can not afford to tip, you can not afford to go out to eat. I kind of agree. The same people who seem to think the travel agent is not worth the money they are paid by the cruiseline, are probably closely related to those that shaft the waiters and room stewards on board, by saying they are not worth what they get paid either.

 

Bottom line is as an agent, I give tokens of appreciation, however if you think you deserve the money a cruiseline pays me just because you want the cheapest possible price, I'd rather not do business with you. In my case a little money is not always better than none.

 

Remember the agent works for and is paid by the cruiseline, not by you. You should have no say in their salary or commission, as it is none of your business. But please do accept their token of appreciation, if offered.

[easyboy]

No. Some will be higher, some lower. It also depends on the category you book - the lower the price, the lower the percentage. Also make sure your TA does not have any cancellation fees. A very popular online cruise TA charges an additional $24.95 in order to book and then has a $100 cancellation fee.

Thanks for the response MikeBTN.

[nipponcruiser]

Every agency regardless of size gets exactly the same pricing from NCL.

However each agency has it's own commission rate they receive based on their volume of business with NCL.

The commission rate is set and it goes across all categories of cabins. For sake of reference let's say an agency is set for 12% commissions. They will receive 12% of the cruise fare of every cabin sold. So they make more on a more expensive cabin. That is 12% of the cruise fare, not the total fare.

 

Agencies are told not to discount the prices, but they can offer incentives by giving away any or all of their commissions. The agency and the agent share the commission according to their own arrangement, some do 50-50, and some do as high as 90-10. The commission is all they have to entice a traveler to book with them.

 

Again for sake of reference at 50-50 an agent may only get $30 for selling an inside standard room, and maybe $300 or more for selling a Haven suite. In many cases the agency and the agent will split the incentive between them. In my own case, my agency refuses to give up any of their share, so any enticements come directly from my share of the commission.

 

You definitely are not going to get much when booking an inside gty cabin.

 

Now if a agency has booked Group rates or cabins, they will keep the TC credits and usually take the GAP points as extra commission, giving themselves a bit more enticement room. If they set up a group on behalf of a client, the client decides how to use the TC credit and GAP points. This is why many agencies set up many groups in hopes of being able to sell into them. Currently Groups warrant perks, not reduced prices. In many cases the price set up when you negotiate the group, is higher than the FIT pricing. So you sell a FIT and later move it into the group. The plus of a group is the TC credit and GAP points or other incentive, it is seldom price.

 

Schools of thought on this practice comes in two sizes. Many clients think that they are entitled to the agent/agencies money and request incentives. They claim the agent getting some money is better than none. This is tantamount to telling someone they do not deserve their weekly paycheck, and ask to have some of it given to you.

 

Others look up on the incentive as a token of appreciation from the agent /agency for doing business with them, and accept it graciously.

 

From my perspective we have far more of the first kind of client than the later.

 

This morning I read a blurb from a waitress who said if you can not afford to tip, you can not afford to go out to eat. I kind of agree. The same people who seem to think the travel agent is not worth the money they are paid by the cruiseline, are probably closely related to those that shaft the waiters and room stewards on board, by saying they are not worth what they get paid either.

 

Bottom line is as an agent, I give tokens of appreciation, however if you think you deserve the money a cruiseline pays me just because you want the cheapest possible price, I'd rather not do business with you. In my case a little money is not always better than none.

 

Remember the agent works for and is paid by the cruiseline, not by you. You should have no say in their salary or commission, as it is none of your business. But please do accept their token of appreciation, if offered.

 

Your rant does NOT impress me at all.

It is full of contradictions, I highlighted 2 for you!!!!

 

I have nothing against travel agents, I have actually been using the same travel agent, the same individual to take care of ALL my travel needs since 1979.

 

Thanks,

Fred

Edited September 22, 2016 by nipponcruiser

[Into Cruising]

They are not contradictions, nor are they inaccurate.

 

1. All agencies receive the exact same pricing at any given time. If someone tell you they can get a better price from ncl, than any other agency, they are lying.

 

If a big box store got preferential pricing, why would the rest of us be in business? Why would they not get all of the business? Ask for a copy of the cruiseline invoice, not the agency's invoive. it will bear out what i say.

 

whatever the cruiseline offer in the way of promo, is available to all of us.

 

2. Commissions do vary based on volume. agencies can rebate back some or all of the commission. The only way to exceed the value of the commission is to take a loss on the sale. Either that or via a group perk if available.

 

3. No agency can advertise prices that are lower than the current set price given to everyone. That is why you get a lot of "call for prices"

 

 

My intention was never to impress you. A question was asked about travel agents. It was answered by a lot of people who either use one or don't. Some of what was said by non agents was outright wrong.

I am sorry if you either could not understand my words or if you were caused to feel bad . It may not have been what you wanted to hear, but it was factual

 

 

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[edawn]

No. Some will be higher, some lower. It also depends on the category you book - the lower the price, the lower the percentage. Also make sure your TA does not have any cancellation fees. A very popular online cruise TA charges an additional $24.95 in order to book and then has a $100 cancellation fee.

 

 

This particular TA you're speaking of saved me $500 over what NCL was offering. I got the guarantee price but got to choose my cabin and got UBP. So if you're sure you're not going to cancel it can be well worth it to book with this TA.

 

 

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[SheehanDJ]

Find a good one, and use them. Keep in mind there are bad ones that may work for large TA's, so if you like the large company but don't like the agent they assigned you, you can request a new one.

 

I never used to use one, that's what the internet is for right? Then via suggestions here I tried it, why pass up OBC right. Turns out I got a lot better deal than just OBC, I also got quite the reduced fare than what I could have gotten.

 

What we have learned is be flexible as possible in dates, destinations, cabins and cruise lines for the best deal.

 

In example, for the cruise we are leaving on in 9 days, we got it with a hefty discount and a bit of OBC. We just asked for a southern Caribbean trip sometime in the Sept - Oct time frame.

 

2017's cruise we didn't get much of a deal at all, but we wanted to go on the Escape western and it had to be in the first two weeks of September. We only got a deal at all because we accepted a bit of a less desirable cabin.

[hawkeyetlse]

A question was asked about travel agents. It was answered by a lot of people who either use one or don't. Some of what was said by non agents was outright wrong.

Would you mind pointing out exactly what was said that was "outright wrong"? I don't see anything in what you wrote that contradicts what everyone else said. The further details that you provided are useful, and it's interesting to see things from a TA's perspective.

 

I can understand your frustration when you see threads like this, where someone asks "Should I book direct or use a TA?" and one of the answers is always "You can get at least 10% in OBC if you find a good TA". If I was a TA earning 12% commission, that would really make me bristle…

 

On the other hand, you can't blame customers for shopping around and trying to get the best deals for themselves. That's what customers do. It's not our responsibility to look out for your paycheck. You said it yourself: Your salary/commission is none of our business. I don't look at incentives as "tokens of appreciation". They are the only quantitative basis of competition among TAs, and the consumer's role is to encourage this competition (which does not mean automatically choosing the lowest price in all cases).

Edited September 22, 2016 by hawkeyetlse

[Into Cruising]

making comments based on a specific cruise category and date, and expecting it to be universal for any date and cruise.

 

I am not exactly sure what the maximum commission rate is that goes to the largest volume agency, but I suspect it is in the 16% area. In many cases that commission is split between the agency and the selling agent. If they operate on a 50-50 split the most the agent could give is 8% and then he would make nothing. In most cases agents can book speculative groups, as well as the agency setting up speculative groups. However there is a limit on the number of groups an agency can have for any sailing. In my contract if the agency sets the group up and I sell into it, the agency takes the TC credit and the gap points. If I set one up for a client , the client gets that, but if I set up a speculative, I get the TC credit and assign the GAP points. Bottom line is agencies do not usually have groups set up for every sailing of the year.

 

The misinformation is mostly stating you got x amount of discount, and setting the expectation that everyone should expect that regardless of the date or booking. Same with OBC. The last two groups I set up , gave out $50 per cabin in GAP dollars....which means if I wanted to use the GAP to provide OBC to the client, it would only be $50 per cabin. so perhaps $50 from the GAP and $50 from the commission and they could end up with $100 OBC. There are plenty of Inside cabin prices where my share of the commission is not even $50.

 

I did not want to insinuate that you should not shop it around. There are always circumstances that influence my decision on how much to rebate, things like number of rooms, or future or past business, or the promise of setting up a later group.

 

One thing for sure, every agent can beat the cruiseline price. They have the wherewithal to rebate the commsission, but baseline prices are identical across the board at any period of time. If you spend too much tie "shopping" it, you could easily be comparing apples to oranges, as one agency may quote an accurate price for the time you called, but two days later when you called another agency to compare, they had a cheaper price, just remember the first agency has the exact same basic price. You are now comparing apples to oranges.

 

By all means go with the one that makes sense to you. As someone said , it may not always be the lowest price.

 

I kind of look at it as I do my dealing with car dealerships. Mo matter how good a deal I think I got, I leave knowing they do not make a deal that they do not make money on.

 

As someone said, find a good agent you like and have mutual respect for. They can always beat the cruiseline, even though they may not be able to always beat deep discount offering from agencies who are willing to make less but make it up in volume. There is always the trade off.

 

Same hold true for me, I won't sell and lose money.

 

Again, it is not so much what was said, but how it is implied and applied that causes expectations to be set improperly.

[mtsnd1900]

1. Agents will always be able to get a better deal - a good agency has group inventory on all/most sailings. Pricing is compared with the daily FIT rate / best rate / and the group rate.

 

2. these group spaces have amenity points that can be transferred to clients (the room credit you mention), something that booking directly will not afford you the opportunity of.

 

3. Agents also can kick back part of a commission when they have a good client, or throw them a bottle of wine, or a dinner or something nice.

 

4. An agent should not charge a "change fee" or cancellation fee. It may be in the fine print, and that is to protect the agent against clients who continuously call and make bookings, and changes, and then cancel at the last minute. For an easy guest, these are typically waived.

 

5. Message me if I can help you in any way or refer you to a great agent if you are in need of one!