TA Commission Protection so what about OBC

[caribill]

24 minutes ago, Pierlesscruisers said:

I would have sworn that a couple of days ago I saw another another thread by the same poster that started out this thread and with the same data as shown in message #12 here. Do we now just keep repeating a thread until we get somebody to agree with us?

Tom

 

Then it is going to take many, many repeats.

[Pierlesscruisers]

3 minutes ago, caribill said:

 

Then it is going to take many, many repeats.

 

 

😁

 

Tom

[dog]

18 minutes ago, caribill said:

 

Then it is going to take many, many repeats.

 

Edited May 8, 2020 by dog

[pms4104]

36 minutes ago, Pierlesscruisers said:

I would have sworn that a couple of days ago I saw another another thread by the same poster that started out this thread and with the same data as shown in message #12 here. Do we now just keep repeating a thread until we get somebody to agree with us?

Tom

Yes, same complaint in different thread ... it's like deja vu all over again, isn't it?

 

Edited May 8, 2020 by pms4104

[Thrak]

I fully expect our B2B2B (33 days) to be cancelled. We have over $1,700 OBC, gratuities, WiFi, and the beverage package. The TA provided the beverage package and the gratuities as an agency promo. They also provided part of the OBC - although much of it was from FCD and shareholder credits. By the figuring of the OP the TA would "owe" me all of their provided OBC and also the cost of the beverage package and gratuities for the two of us. The beverage package and gratuities come to around $5,600. Then there is the OBC the TA was providing. Wowie Zowie! Bring it on!!

 

People boggle me...

[frugaltravel]

11 hours ago, caribill said:

 

You are assuming that the TA's OBC all comes from the commission, but that is not likely.

 

Two other possible sources of the OBC that the TA offers:

a) A lower price that the TA pays compared to what you paid for the cruise. For example, you might pay (to make up numbers) $2000, but the TA only has to pay $1700. The OBC can come in part from that $300 difference. Since you ended up paying nothing and the TA did not pay that $1700, that $300 is not available to give to you in any form.

b) When a TA books a cruise for you, it gets amenity points. These points can be used to purchase OBC for you or they can be used for other amenities such as specialty dining or a bottle of wide. They also can be used to just increase the commission the TA gets without passing any of the amenity point benefits on to you. However, when the cruise is canceled, there are no amenity points to provide OBC (or anything else) and thus no $$$ from amenity points to pass on to you.

I said something similar in a lot less detail. I was torn apart by one poster (not the OP) and both our posts were unfortunately removed.

 

Thanks for clarifying.

 

[cruzsnooze]

5 hours ago, voljeep said:

yes - if the TA got to keep the commission "earned" , but not paid out as promised , on the $ 20k cruise

Thank you for understanding what my point is regardless of the outcome.

[pms4104]

Food for thought:  if Princess does not have the actual cash to refund those who paid for now-cancelled cruises, where they gonna find the money to pay commissions to the TAs who booked those cruises?  Or maybe none of us, TAs included, will ever get anything at all?

Edited May 8, 2020 by pms4104

[jagoffee]

On 5/8/2020 at 1:45 AM, caribill said:

 

You are assuming that the TA's OBC all comes from the commission, but that is not likely.

 

Two other possible sources of the OBC that the TA offers:

a) A lower price that the TA pays compared to what you paid for the cruise. For example, you might pay (to make up numbers) $2000, but the TA only has to pay $1700. The OBC can come in part from that $300 difference. Since you ended up paying nothing and the TA did not pay that $1700, that $300 is not available to give to you in any form.

b) When a TA books a cruise for you, it gets amenity points. These points can be used to purchase OBC for you or they can be used for other amenities such as specialty dining or a bottle of wide. They also can be used to just increase the commission the TA gets without passing any of the amenity point benefits on to you. However, when the cruise is canceled, there are no amenity points to provide OBC (or anything else) and thus no $$$ from amenity points to pass on to you.

Thank you for the detailed explanation.

When booking with Princess my TA always gives me a discount.  As long has my TA does not reduce my discount when I use the FCC (With the bonus) in the future, IMO it is fair.

[Coral]

23 minutes ago, jagoffee said:

Thank you for the detailed explanation.

When booking with Princess my TA always gives me a discount.  As long has my TA does not reduce my discount when I use the FCC (With the bonus) in the future, IMO it is fair.

They will discount less when you use your FCC.

 

If your cruise is usually $1000 (plus fees and taxes) and they discount 10%, you get $100 discount. If your future cruise is $1000 (plus fees and taxes) and you have a $700 FCC, the travel agent can only work off of $300 cruise fare to discount. Very little commission on that.

[voljeep]

4 minutes ago, Coral said:

Very little commission on that.

but, didn't the TA get to keep the commission on the cruise that generated the $ 700 FCC , assUme the same TA is used ?

[Coral]

8 minutes ago, voljeep said:

but, didn't the TA get to keep the commission on the cruise that generated the $ 700 FCC , assUme the same TA is used ?

I am guessing since I have not been reimbursed, they have not also. Plus, they have to do more work due to the cancelled booking.

 

My TA discounts off of the cost of the booking. So there is no extra money to get.

Edited May 9, 2020 by Coral

[ceilidh1]

1 hour ago, Coral said:

They will discount less when you use your FCC.

 

If your cruise is usually $1000 (plus fees and taxes) and they discount 10%, you get $100 discount. If your future cruise is $1000 (plus fees and taxes) and you have a $700 FCC, the travel agent can only work off of $300 cruise fare to discount. Very little commission on that.

The communications I have been receiving say that TAs will get commission on the FCCs when they are used (usually not commissionable). Whether this will be the reality is yet to be seen....

 

FWIW I have not yet received the commission from the cancelled Princess bookings I had made

[caribill]

2 hours ago, Coral said:

They will discount less when you use your FCC.

 

If your cruise is usually $1000 (plus fees and taxes) and they discount 10%, you get $100 discount. If your future cruise is $1000 (plus fees and taxes) and you have a $700 FCC, the travel agent can only work off of $300 cruise fare to discount. Very little commission on that.

 

Princess has told travel agents that they will earn commissions on the bonus FCC amounts.  So in your example, the $700 is also commissionable if it came from this round of cancellations.

[caribill]

1 hour ago, voljeep said:

but, didn't the TA get to keep the commission on the cruise that generated the $ 700 FCC , assUme the same TA is used ?

 

The (up to) 100% bonus FCC is only for cruises that did not have final payment paid and thus no commission paid to the TA. For cruises that were fully paid, the bonus is limited to 25%, but the TA dioes get the original commission.

 

In either case, when the 100% or 25% bonus is used in the future, the TA (and does not have to be the same TA) will receive commissions on the bonus FCC amounts also.

[Thrak]

1 hour ago, voljeep said:

but, didn't the TA get to keep the commission on the cruise that generated the $ 700 FCC , assUme the same TA is used ?

 

The TA commission is protected for cruises that were paid in full. I watched the webinar yesterday. If the cruise wasn't paid in full there is no commission.

[CaribbeanIsland]

I feel sorry for the travel agents on this.

 

 

Edited May 9, 2020 by CaribbeanIsland

[jagoffee]

10 hours ago, Coral said:

They will discount less when you use your FCC.

 

If your cruise is usually $1000 (plus fees and taxes) and they discount 10%, you get $100 discount. If your future cruise is $1000 (plus fees and taxes) and you have a $700 FCC, the travel agent can only work off of $300 cruise fare to discount. Very little commission on that.

 

10 hours ago, Coral said:

I am guessing since I have not been reimbursed, they have not also. Plus, they have to do more work due to the cancelled booking.

 

My TA discounts off of the cost of the booking. So there is no extra money to get.

I guess I will find out when the final payment is due on my January 2021 cruise.  I already have the invoice for that cruise with the price set.  I booked it over a year ago.  I am anticipating that I will apply my FCC with the bonus (deposit doubled basically)  for my two cancelled cruise to the balance owed.  I would hope that my TA would get their commission based on the price before I apply my FCC’s.

Obviously  I am not 100% sure as I have not done it yet.  I do have my TA confirming that if I take the FCC option instead of a cash refund that I can apply the FCC to an already booked future cruise.

Coral, do you think that I cannot apply it to an existing future booking?

 

Thanks

 

 

 

[caribill]

3 hours ago, jagoffee said:

 

Coral, do you think that I cannot apply it to an existing future booking?

 

I am not Coral,. but at least the Pause 3 FCCs can be applied to an existing booking.

[caribill]

10 hours ago, CaribbeanIsland said:

I feel sorry for the travel agents on this.

 

 

 

When the FCCs are used on a future cruise, the TA will get the full commission for that future cruise.

 

 

[jagoffee]

8 hours ago, caribill said:

 

I am not Coral,. but at least the Pause 3 FCCs can be applied to an existing booking.

Thank you.  

[Thrak]

21 hours ago, CaribbeanIsland said:

I feel sorry for the travel agents on this.

 

I feel sorry for all of the people who lost money, jobs, and businesses. it's a harsh thing. I feel very fortunate to be retired with a (hopefully) safe pension.

[Rancher Dave]

On 5/6/2020 at 7:45 PM, cruzsnooze said:

I didn't book under any sale. I booked full price with a big box TA who gives the OBC.  It has nothing to do with the cruiseline. My thought was the big box TA should issue a gift card for costco since they are getting their commission. Why should they keep my portion that they had no intention of keeping.

if you have been made whole, why do you believe you are owed a profit from the cancelled cruise?  As someone else said the TA is doing a lot more work than they would have for the cruise anyhow.     

 

As for TAs getting paid, if the cruise lines said you have to continue to help with these cruises and pay back commission already paid, shops would close up leaving a huge issue for the pax and cruise lines to sort out.  Also, many other tour operators aren't giving TAs anything for tours the operator cancelled, so the TA gets to deal with the client to sort out the cancellation while not getting paid anything. Do you go to work for nothing because a vendor said you have to?   

Edited May 10, 2020 by Rancher Dave

[MamaFej]

On 5/9/2020 at 1:02 PM, CaribbeanIsland said:

I feel sorry for the travel agents on this.

 

 

Mine is a very dear friend of over 30 years. He took over a small Mom and Pop agency from his own Mom and Pop (his 80 year-old Mom still does the books). After 49 years in business, he may have to shut the doors. He is still paying his one employee, for now. He has stopped taking a draw (thankfully, his wife's income is stable). He has applied for the government small business assistance, and has received some, but it won't keep the doors open in the long run.