RSSC penalizing themselves and us by enriching TAs with 16.5% commission rate

[22Club59]

On a recent RSSC invoice of approx. $169,000 RSSC set a "Cruise Fare Commission" of approx. $28,000 (or about 16.5%) for a cruise in a Regent Suite. I discovered this when the TA by accident emailed me a copy of the applicable "Agency Statement." My sense is that such a commission rate is excessive and (i) enriches the TAs at the expense of RSSC, and (ii) unreasonably increases the prices we pay for such cruises; all for that not significant an effort by the TA. How do the members of the forum feel about this rate of commission and what rate of commission is being routinely paid - and what is the impact upon the cruise fares we all pay?

[PhD-iva]

I have seen that percentage quoted in the past. I suspect many regulars to this forum are familiar with the commission structure. Probably half of that commission goes to the company, possibly more. My TA works very hard, and she rebates some of that commission back to me.
Maybe you need a different TA?

[WesW]

Generous Travel Agents (TA)  like the two posters above intimate, rebate a portion of their commission back to their clients.  We r fortunate that our TA rebates more than 10% back to us on every cruise. Our TA is in the top 5 travel agents for RSSC world wide.

[22Club59]

33 minutes ago, WesW said:

Generous Travel Agents (TA)  like the two posters above intimate, rebate a portion of their commission back to their clients.  We r fortunate that our TA rebates more than 10% back to us on every cruise. Our TA is in the top 5 travel agents for RSSC world wide.

Do you mean 10% of the RSSC charge or 10% of the commission (i.e. about 1.5% of the RSSC Charge?

TIA.

[edgee]

With my TA it is 10% of the RSSC charge less some taxes which are built into the price and air.

[Dr. Cocktail]

11 hours ago, 22Club59 said:

Do you mean 10% of the RSSC charge or 10% of the commission (i.e. about 1.5% of the RSSC Charge?

TIA.

10% off the Total Price minus port taxes and fees..

 

ie if your invoice says $1000, RSSC doesn't show the taxes .... for argument's sake, we'll say $100

So the fare would actually be $900 of which many agents will, in one form or another, rebate 10% of that, or $90.

 

The crazy thing is that the amount of time the agent works on your reservation is not really accurately reflected in the commission. You could phone your agent and ask him or her to book the Regent Suite on a particular date after you've done the research and booked your own flights. Another client could send 18 emails, 7 text and phone 13 times because they had problems with their $399 four night Carnival cruise!  Both get the same percentage commission from the cruise line for vastly different amounts of work!

[WesW]

22Club59, 10% of the Regent cruise fare (e.g. if your cruise cost $40,000, you would

get a check of $4000 a few weeks priot to embarking)

[Pcardad]

On 10/10/2022 at 2:05 PM, WesW said:

22Club59, 10% of the Regent cruise fare (e.g. if your cruise cost $40,000, you would

get a check of $4000 a few weeks priot to embarking)

The entire cruise fare is not commissionable so it would be a bit less. Also, not every TA Agency earns at the same rate.

[jhenry1]

I have never understood what amt to figure my rebate on?

I use to get it a a welcome gift when we returned and seemed a considerable larger amt than the amt I am now receiving. I did have to change TA as the company I was using closed. Also now it is on your account on the ship but can be withdrawn at end of cruise. Also I have found that my TA gives a small amt and I mean a real small amt of OBC.  Maybe after Covid things have been cut back..

We have had many $40,000 cruise fares and I have never $4,000. What are we doing wrong?

Edited October 12, 2022 by jhenry1

[PhD-iva]

I suspect that sometimes the TAs that give a 10% rebate are associated with the big box stores that sell discounted everything. One frequent cruiser I know on the Oceania board has posted that his rebate comes in the form of a gift card to the store of that big box store where they do a lot of shopping anyway.

So, sometimes I think there are nuances to this process that is not always visible to the rest of us. I get a small 3% or 4% rebate from my TA. I also don’t cruise as frequently or in as high a stateroom category as some other frequent posters.

Edited October 12, 2022 by PhD-iva
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[Pcardad]

Usually what happens is that the large TA companies at the highest rate employ hourly TA's and thus the owner of the agency can kickback a good chunk.

[PhD-iva]

3 hours ago, WesW said:

jhenry1; we are fortunate to have a generous TA.

 

Phd-iva (love your CC name) our TA is not affiated with any Big Box stores, they are in the top five of all Regent TA's worldwide, it's the owners choice to rebate a significant amount of their commission back to his clients.  He told me recently, one client was making final payment on an Oceania cruise (had the top suite) and he sent this client a $40,000 check.

 

And pls remember it's just not the cash back, SBC, private cocktailparties, special excursions (travel consortiums offer SBC, parties, excursionns; it's about a Travel Agent who provides service pre cruise,during your cruise, and post cruise.  For example, pre cruise (our TA ensured we reached a certain Tier on the voyage when the Regent was not going to recognize this), during the cruise--our TA bought me business class airfare home from Capetown even tho I had included BC air but the cruiseline's air was swamped getting World Cruisers home (this was during the early stages of Covid as ports were closing). Post cruise; converting on board booking to their books.

Thx. I was thinking of someone else specifically (on a different forum), Who has specifically mentioned that they purchased their cruises from the unnamed big box store.

I don’t expect as big rebates as others who post here, as I don’t cruise as much, and often in lower category staterooms.

[RachelG]

My TA is definitely not associated with a big box store and gives rebate which I think are generous. 

[LvnCruisin]

These topics are always interesting, we never knew there were any rebates. We had one cruise where are travel agent gave us $100 OBC - for a penthouse suite. We will be looking at a new agent before we ever book again.

[snorkle lover]

So if we were going to be getting a rebate ( of any sort) where would it show up and when? We have only been on one Regent cruise and are booked on two . One is paid in full.

[colleenmf]

My TA sends a rebate check after we return.  Or we could get SB credit but I choose the check.  IT is NOT 10% of the cruise.  Something much smaller. Maybe 5% of the cruise fare not the extras.

[cwn]

Our agent tells us what the rebate will be at booking or as soon as she knows. We  can get it as OBC and refunded if not used or in a check after the cruise. We know the amount long before Findlay payment.

[Sunprince]

So if Regent is paying TAs 16.5% commission then I am curious as to why a guest who books directly with Regent is offered zero incentive?  Regent saves the 16.5% but offers nothing back.  I know many of us prefer the services of a TA, but an alternative lower cost book direct option would be an interesting option. 

Edited October 13, 2022 by Sunprince

[rallydave]

On 10/12/2022 at 6:32 AM, jhenry1 said:

I have never understood what amt to figure my rebate on?

I use to get it a a welcome gift when we returned and seemed a considerable larger amt than the amt I am now receiving. I did have to change TA as the company I was using closed. Also now it is on your account on the ship but can be withdrawn at end of cruise. Also I have found that my TA gives a small amt and I mean a real small amt of OBC.  Maybe after Covid things have been cut back..

We have had many $40,000 cruise fares and I have never $4,000. What are we doing wrong?

It is impossible for the customer to pre figure what the 10% or whatever rebate will be.  As others have said port fees and taxes do not get commissions.  Added to that the cost of the air does not received commissions.  Anything going to a third party and not Regent is not commissionable.  

 

Only the TA can calculate the rebate after booking and getting the breakdown from Regent.   As far as the 16.5%, have heard that the top agencies actually get about 18%  

 

If the agency is at 18% and rebates 10% that is 55.55% of the commission.  Just remember anything beyond the base fare does not get commission so that would include hotels, pre-cruise packages, etc.

[RJ2002]

1 hour ago, Sunprince said:

So if Regent is paying TAs 16.5% commission then I am curious as to why a guest who books directly with Regent is offered zero incentive?  Regent saves the 16.5% but offers nothing back.  I know many of us prefer the services of a TA, but an alternative lower cost book direct option would be an interesting option. 

 

Here is an interesting Travel Weekly article from last week.  I bolded "very low-cost" in the quote from the article.  NCLH clearly hopes to grow its share of direct bookings and thus avoid commisions.

 

"Norwegian Cruise Line Holdings anticipates surge in direct bookings"

 

...In a statement to Travel Weekly, NCLH said the company is focused on maximizing all of its distribution channels and said travel partners continue to be "an incredibly important distribution channel for us." 

However, the company said it is investing in its direct business after noticing an accelerated shift toward more direct bookings during the pandemic. NCLH said it sees a significant opportunity to increase its direct online bookings, a "very low-cost and attractive channel." ...

 

https://www.travelweekly.com/Cruise-Travel/NCLH-anticipates-surge-direct-bookings

[PhD-iva]

2 hours ago, Sunprince said:

So if Regent is paying TAs 16.5% commission then I am curious as to why a guest who books directly with Regent is offered zero incentive?  Regent saves the 16.5% but offers nothing back.  I know many of us prefer the services of a TA, but an alternative lower cost book direct option would be an interesting option. 

Travelers have different support needs. If you purchase your cruise directly from the cruise line, then they have to provide all of the post purchase support. That could be a lot or a little, depending on the passenger and possibly that itinerary.
So it is not a zero cost to the cruise line when the passenger books directly from them; they have to staff experienced travel agents to answer the phone and to provide support to the passenger. 

[Pcardad]

1 hour ago, RJ2002 said:

 

Here is an interesting Travel Weekly article from last week.  I bolded "very low-cost" in the quote from the article.  NCLH clearly hopes to grow its share of direct bookings and thus avoid commisions.

 

"Norwegian Cruise Line Holdings anticipates surge in direct bookings"

 

...In a statement to Travel Weekly, NCLH said the company is focused on maximizing all of its distribution channels and said travel partners continue to be "an incredibly important distribution channel for us." 

However, the company said it is investing in its direct business after noticing an accelerated shift toward more direct bookings during the pandemic. NCLH said it sees a significant opportunity to increase its direct online bookings, a "very low-cost and attractive channel." ...

 

https://www.travelweekly.com/Cruise-Travel/NCLH-anticipates-surge-direct-bookings

Low-Cost should really say More-Profitable...its not like the fare will be cheaper booking directly.

[1982CruzStart]

At the time of booking and paying the deposit our TA confirms the rebate.  Don't really know what the % is but am happy with whatever we get back.  Sure beats the small OBC that our old TA gave us. 

The rebate check arrives with our cruise documents. As a bonus whether we book in CAD or USD the rebate check is always in USD which gives us some USD for our trip. 

[Bellaggio Cruisers]

I switched to our present TA about 4 years ago. Our old TA did not give us the commission due as promised.
Our new TA gives us absolutely the best service and 9 to 10%, depending on the cruise line.

Can’t ask for better!

sheila

[Pcardad]

It might be easier for me to quit and take the 10% kickback tax-free!