No Discount Policy

[cruisePRN]

What's this all about, the no discount policy? When did they ever discount. I know they have specials and "hot deals" on RCL.

[ocngypz]

Discounting refers to an agency rebating part of the commission earned from the cruiseline upfront to lower the customer's fare.

[flashdog_1]

The first cruise I booked was discounted and that was just before the change, I think. Around jan, feb, mar? 04.

[cruisePRN]

Thanks for the explaination. On a usual 7 day cruise I didn't realise the commission was high enough to rebate.

[Jimsgirl]

I am doing a 25 day back to back cruise in Sept, and my agent is very upset that she cannot discount the cost to me out of her commission as a reward for all the cruises I take with her.

 

I think that Celebrity is being very high handed over this. They get a certain amount of dollars for the cruise , what the agent does with their commission should not be any of Celebrity's concern.

[cruisePRN]

so the discount is not from TA's who buy a block of cabins and discount? It's only rebating part of their commissions that are considered discounting?

[vaccardi]

I have had a problem with this. I don't think it is good for competition, and think that it encourages people to go right to the cruise lines to book.

 

I have started using a TA because of this policy. Whats more, while a TA can't "discount" the cruise fare, they can make adjustments to a package deal (IE private airfares that they do not get commission on and private transfers.)

[chessbriar]

I have had a problem with this. I don't think it is good for competition, and think that it encourages people to go right to the cruise lines to book.

 

You say it's not good for competition. What X wants to do is compete with the other cruise lines and not within thier own sales team.

 

It is not to encourage people to book with X, They are aware their customer service for bookings in lacking. It's actually to steer people to agents. There are a lot of thing an agent can do to help you get the best price without discounting X fares. It's to ensure that giant company a doesn't put another company out of business. If the large discounting companies put their mind to it, they could drive a lot of smaller competitors out of business, then demand larger commissions.

 

I think we all should feel lucky that agents can still sell a cruise without added surcharges. Look at what the airlines have done. I don't hear you screaming about that. They eliminated commission altogether. That's why there are surcharges from agents when you opt to use them to buy your tickets.

[CGTNORMANDIE]

CELEBRITY says that their policy is to steer business to the agents but if you look at the numbers you will see that more business has been driven to Celebrity than ever before...because of the new policy. Obviously X stands to benefit if it books more cruises themselves. Their big problem is that they have been allowing some of the bigger agents and online agents to block book hundreds of cabins. X allows agents more latitude in pricing and discounting if the cabins have been block booked. The problem is that the agents have not been selling all the cabins so we are seeing an increased amount of X discounts on short notice...(See their Happy Hour bookings every Tuesday.) So the result is that a lot of us are just waiting til the last minute to book or we are going elsewhere to buy a cruise with a different company such as Princess or MSC which does not have the silly pricing policy. The RCI/Celebrity pricning policy is just another device to increase revenue and make hay while the sun shines. Some people have called the policy PRICE FIXING...but it is not really that. I do believe it is a RESTRAINT OF TRADE. RCI claims that the agents are just distributers of their product. If you read their passenger contract it states that the agents are actually totally independent of RCI...if that is the case then RCI is restraining trade since the agents should be able to charge within their own limitations thereby increasing competition.

 

ROSS

[timbo89]

Has anyone noticed that the online agencies are getting around this by offering your choice of "cruise value" items (e.g. shore excursions, onboard credits, etc.).....

 

Interesting.....

[rjg41]

CELEBRITY says that their policy is to steer business to the agents but if you look at the numbers you will see that more business has been driven to Celebrity than ever before...because of the new policy. Obviously X stands to benefit if it books more cruises themselves. Their big problem is that they have been allowing some of the bigger agents and online agents to block book hundreds of cabins. X allows agents more latitude in pricing and discounting if the cabins have been block booked. The problem is that the agents have not been selling all the cabins so we are seeing an increased amount of X discounts on short notice...(See their Happy Hour bookings every Tuesday.) So the result is that a lot of us are just waiting til the last minute to book or we are going elsewhere to buy a cruise with a different company such as Princess or MSC which does not have the silly pricing policy. The RCI/Celebrity pricning policy is just another device to increase revenue and make hay while the sun shines. Some people have called the policy PRICE FIXING...but it is not really that. I do believe it is a RESTRAINT OF TRADE. RCI claims that the agents are just distributers of their product. If you read their passenger contract it states that the agents are actually totally independent of RCI...if that is the case then RCI is restraining trade since the agents should be able to charge within their own limitations thereby increasing competition.

 

ROSS

 

While I, like many, don't like the RC policy, cabin availability is a supply and demand matter. All cruise lines are offering specials for certain date ranges and it has nothing to do with just X/RC. If agents can't sell cabins it is because demand isn't there. You think that if X/RC had a shortage of cabins to sell they don't have a clause in their contract where they can get them back from the agencies? You think if X/RC was sold out of cabins and agencies had cabins, the agencies couldn't sell them?

 

A month or two ago, Costa was selling inside cabins on a last minute 7 day Magica for $399pp. In fact they sold some at $299 as promotions at certain agencies. Star Princess had last minute 7 day cabins for $499 inside and balconies for $699. What has that got to do with the X/RC pricing policy?

 

Now as to the legality, I believe the basic issue has been court tested. For example, many high end electronics manufacturers will only sell to their authorized dealers. The authorized dealers must sell the items at the retail price with no discounts. If they are caught selling at less than retail they risk losing their approved status. If you buy one of these manufaturer's products from a non approved dealer, in many cases, the warranty is void. Thus you hear the term "grey market". That's what the term means.

 

Try getting facory warranty service for a Yamaha electronics product purchased from a non authorized dealer. This is what is posted on Yamaha's web site:

 

"It is our policy to honor warranties and perform warranty service only on products purchased from an Authorized Dealer. If you purchase from an unauthorized source, our product warranty program will not be valid".

Link to the web site: http://www.yamaha.com/yec/customer/warranty/warranty_main.htm

 

What makes X/RC's policy illegal while the above is legal?

[cruisePRN]

Just how big is the commission on a routine 7 day cruise that TA's can afford to discount the price anyway?

[CGTNORMANDIE]

RJG,

"it has nothing to do with just RCI..."

This discussion is germain to RCI.

 

"If agensts can't sell cabins it's because demand is not there"

Simply not true...a lot of agents end up with cabins when there is, in fact, a high demand.

 

"they don't have a clause in their contract where they can get them back from the agencies"

 

RCI does have a contract that allows them to take the cabins back but up until now RCI has not called in for the cabins in a timely manner and that is why you are seeing a lot of Happy Hour Specials.

 

What I am saying is that RCI needs to better coordinate their marketing and that the block bookings system needs to be overhauled and the new pricing policy is geared for increased bookings within RCI.

 

Factory warrentees have nothing to do with a restraint of trade of free agents. You need to have an understanding of the laws of agency.

 

This case will never be proven until it goes to court. The word illegal was a word that you used.

 

HI KARYN,

 

A TA can make as much as 16% plus certain over-rides when incentives are given and that can add up to more.

 

ROSS

[cruiseorbust]

Just how big is the commission on a routine 7 day cruise that TA's can afford to discount the price anyway?

 

 

I think it depends on the agency, but a surprisingly small amount goes to a TA, and they have expenses to cover!!

[cruisePRN]

I think it depends on the agency, but a surprisingly small amount goes to a TA, and they have expenses to cover!!

 

That is why I don't see what there is for a TA to kickback or discount anyway. Not on a small 7 day cruise anyway.

[Islandbuoy]

The discount can easily be $100pp on a 7 day cruise and is well worth it.

 

"X"'s new policy is to have "Happy hour specials" so that the discount is available to all

[rjg41]

RJG,

"it has nothing to do with just RCI..."

This discussion is germain to RCI.

 

"If agensts can't sell cabins it's because demand is not there"

Simply not true...a lot of agents end up with cabins when there is, in fact, a high demand.

 

"they don't have a clause in their contract where they can get them back from the agencies"

 

RCI does have a contract that allows them to take the cabins back but up until now RCI has not called in for the cabins in a timely manner and that is why you are seeing a lot of Happy Hour Specials.

 

What I am saying is that RCI needs to better coordinate their marketing and that the block bookings system needs to be overhauled and the new pricing policy is geared for increased bookings within RCI.

 

Factory warrentees have nothing to do with a restraint of trade of free agents. You need to have an understanding of the laws of agency.

 

This case will never be proven until it goes to court. The word illegal was a word that you used.

 

HI KARYN,

 

A TA can make as much as 16% plus certain over-rides when incentives are given and that can add up to more.

 

ROSS

 

 

Can we agree to disagree?

[MrLee]

I don't know how much a T/A commissionis but my union owns a T/A and rebates 5% to members who use it. Obviously the commission is enough higher than that to pay the bills (and the agent).;)

[cruiseorbust]

The discount is only based on the cruise portion, not the port and tax. Then the TA has to split the commission with the agency they work for. You do the math.....say the cruise cost is 599/pp plus tax....(keep in mind some cruise lines pay 12%).

 

599-139(port) = $460 (represents cruise portion) - 12% = 404.80 (cruise portion) $55.20 (commission)

 

$55.20 divided by two (1/2 agency 1/2 TA) = $27.60. That may sound like a lot to you, but the effort and time to find that cruise for you, along with all the paperwork, calls to cruise lines, follow up to make sure everything is in place before final doc go out, added phone calls/emails to answer your questions, plus business expenses....not a lot of money left.

 

I've never seen a TA that was "dripping" in money, and I know several good ones!

[ocngypz]

The discount is only based on the cruise portion, not the port and tax. Then the TA has to split the commission with the agency they work for. You do the math.....say the cruise cost is 599/pp plus tax....(keep in mind some cruise lines pay 12%).

 

599-139(port) = $460 (represents cruise portion) - 12% = 404.80 (cruise portion) $55.20 (commission)

 

$55.20 divided by two (1/2 agency 1/2 TA) = $27.60. That may sound like a lot to you, but the effort and time to find that cruise for you, along with all the paperwork, calls to cruise lines, follow up to make sure everything is in place before final doc go out, added phone calls/emails to answer your questions, plus business expenses....not a lot of money left.

 

I've never seen a TA that was "dripping" in money, and I know several good ones!

 

 

And a 50% SPLIT is being generous... it is mostly 30/70 with the 30% to the individual agent.

[cruisePRN]

clue me in on this "happy hour". I am booked on constellation for Oct 5 2007 and if I find a cheaper price they usually honor it. Is it at their site?

[CGTNORMANDIE]

We Can!!! Lol!!!

 

Ross

[hhv100]

clue me in on this "happy hour". I am booked on constellation for Oct 5 2007 and if I find a cheaper price they usually honor it. Is it at their site?

 

I don't have the website bookmarked on this computer, but I know that the "Happy Hour" specials are only for new bookings. They're great if you can be flexible about where and when you travel, but not so great when you need to plan way in advance.

[duke052]

A good agent which most of us are, will keep an eye on the cruise fare, up to final payment. If the cost goes down they can secure the lower amount. Once final is made the deal is done.

[cruiseorbust]

This is true, a good agent will continue to watch prices. I just recently took over someone's booking that booked directly with the cruise line. I noticed there was a senior promotion available to them that was never offered. Once I secured the booking with our agency, I implemented the promotion and saved them an additional $818 by moving them from a cabin in the very front of the ship (just an OV cabin) to a CC cabin (with all the perks and a balcony). Some travel agents really do care to do the very best for their clients!!! It is not always about getting the most commission out of someone. I could have kept them where they were and gotten more money for myself.