TA service charge when your cruise is cancelled

[HS2BS]

If commissions were paid on Cruise line cancellation, and a fcc was issued. Then a commission was paid on the cruise that the fcc was used on, the out lay by the cruise line would be unreasonable. The ta then received double commission on the cancellation and then on the rebooking using the fcc.

If that was true, no cruise line would be in business very long!!

 

Hal

[drsel]

If commissions were paid on Cruise line cancellation, and a fcc was issued. Then a commission was paid on the cruise that the fcc was used on, the out lay by the cruise line would be unreasonable. The ta then received double commission on the cancellation and then on the rebooking using the fcc.
If that was true, no cruise line would be in business very long!!
 
Hal

No no.
commissions are only paid when there is actual cash payment made by the customer and not on the value of future Cruise credit used.

[drsel]

So travel agencies only get a single commission

[drsel]

There is one cruise line Carnival which also gives a gift of $300 or $600 OBC for transferring the payment of a cancelled Cruise onto a future Cruise, and that may not be a financially sound decision

 

 

[HS2BS]

I have a fcc from a cancelled cruise that I used at a different ta. What your saying is that the second ta now gets no commission when I used my fcc?

 

Hal

[drsel]

I have a fcc from a cancelled cruise that I used at a different ta. What your saying is that the second ta now gets no commission when I used my fcc?
 
Hal

Yes, if the future Cruise credit covers the full payment of the future Cruise.

[drsel]

.

[drsel]

.

[HS2BS]

I’ll ask the ta tomorrow and get back with her reply.

 

Hal

[drsel]

TA gets 10 to 16 % commission based on their volumes and the type of cabin you choose.

Assuming 16 % commission which is the maximum,

if you pay $1000 and the same money is recycled to book a second and third Cruise because the first two Cruises were cancelled, then Princess will end up paying 480 dollars and nearly half the money will go as commission

 

 

[Aulanis]

18 minutes ago, drsel said:

No no.
commissions are only paid when there is actual cash payment made by the customer and not on the value of future Cruise credit used.

 

18 minutes ago, drsel said:

So travel agencies only get a single commission

 

I am not sure if that is correct though many things change from

week to week

[drsel]

 
I am not sure if that is correct though many things change from
week to week

Wow, where you get this?
are you a travel agent ?

[drsel]

so if they are paying commission on future Cruise credits (only 1 single cash payment recycled), and if 7 consecutive cruises are cancelled in 7 consecutive months from April to October 2020, then almost the entire amount paid by the customer will go to the travel agent as commission!

 

This will be a huge loss for the cruise line!

 

 

 

 

[caribill]

11 hours ago, drsel said:

Wow, where you get this?
are you a travel agent ?

 

This was the slide shown when Princess was explaining the Pauses during a webinar. It was recognition that the TA had done all the work necessary to earn the commission.

 

However if the cruise had not been paid-in-full, no commission would be paid even though the TA may have done a good bit of work on the booking.

 

If the client uses the FCC with a different TA, then the new TA would get the second commission.

 

 

11 hours ago, drsel said:

so if they are paying commission on future Cruise credits (only 1 single cash payment recycled), and if 7 consecutive cruises are cancelled in 7 consecutive months from April to October 2020, then almost the entire amount paid by the customer will go to the travel agent as commission!

 

This will be a huge loss for the cruise line!

 

 

 

Princess did not say that if FCCs were used to pay for a new cruise and then Princess cancelled that paid-in-full cruise what would happen to the commission.

 

But if I had to make a guess, just like the FCC amounts would go back being FCCs again with no bonus FCC based on those amounts, I suspect that no commission would be paid when that new cruise is cancelled. When the FCCs are used for a cruise that actually does sail, that is when the commission would be paid. Afain, only a guess.

[drsel]

Exactly what I feel.

Princess cannot keep on paying commission repeatedly for the same recycled money