Perks or OBC from travel agent?

[JFontaine]

I just booked a short, $20,000 cruise.  First with O.  I did all the work, including shopping around for a new TA, as my old  Crystal TA told me how hard life is for a TA and gave nothing.  I didn't ask anyone to do the pricing, just curious about what I was leaving on the table. I went with someone who advertised one thing, and delivered less.  This Flatbush Brooklyn girl (Madison HS) would love to meet @Flatbush Flyer one day! 

[Hlitner]

1 hour ago, Flatbush Flyer said:

Check your Oceania invoice: if the gratuities coverage says OCAPP next to your TA’s (or his/her consortium’s) name, those $ are pass through incentive funds from O via your TA.

In our case, part of the amenities come from a major consortium.  I have posted, elsewhere, about travel consortiums, which are simply networks of independent agencies that work together as a group to increase their clout.  Some of these consortiums have hundreds of agency members around the world.  Think in terms of a consortium that books thousands of reservations in a single day!  That gives them a lot of clout and also makes them very popular with cruise lines who all seek their support and business.

 

Those of us who have been at this cruise game for decades have seen many changes throughout the travel/cruise industry.  I think, at one time, the original consortium may have been AAA (AA in Canada) who had hundreds of affiliates in North America.  In the old days they could put together group bookings and qualify for special "group rates" and other considerations from the cruise lines.  Today, there are multiple consortiums and they offer a way for their member agencies to offer perks that cannot possibly be offered by a small non-affiliated agency.  Many cruise/travel agencies hide the fact that they are in a consortium while others hold it out as a major advantage.  

 

Another positive aspect of consortiums is that they tend to encourage continuing education/training for their members.  There are quite a few designations that can be earned by agents who participate in various training programs.  Rather than just dealing with an order taker (which is what you get when you call a cruise line) you can deal with a true travel professional who has a good understanding of the cruise industry, airlines, hotels, etc.  For us it is interesting that our next few cruises (Explora Journeys, Princess, and O) are all booked through the same agent.  It makes my life much easier to deal with a single person/agency, especially when that agency can give us terrific deals with each line.

 

Hank

 

[Flatbush Flyer]

58 minutes ago, Hlitner said:

In our case, part of the amenities come from a major consortium.  I have posted, elsewhere, about travel consortiums, which are simply networks of independent agencies that work together as a group to increase their clout.  Some of these consortiums have hundreds of agency members around the world.  Think in terms of a consortium that books thousands of reservations in a single day!  That gives them a lot of clout and also makes them very popular with cruise lines who all seek their support and business.

 

Those of us who have been at this cruise game for decades have seen many changes throughout the travel/cruise industry.  I think, at one time, the original consortium may have been AAA (AA in Canada) who had hundreds of affiliates in North America.  In the old days they could put together group bookings and qualify for special "group rates" and other considerations from the cruise lines.  Today, there are multiple consortiums and they offer a way for their member agencies to offer perks that cannot possibly be offered by a small non-affiliated agency.  Many cruise/travel agencies hide the fact that they are in a consortium while others hold it out as a major advantage.  

 

Another positive aspect of consortiums is that they tend to encourage continuing education/training for their members.  There are quite a few designations that can be earned by agents who participate in various training programs.  Rather than just dealing with an order taker (which is what you get when you call a cruise line) you can deal with a true travel professional who has a good understanding of the cruise industry, airlines, hotels, etc.  For us it is interesting that our next few cruises (Explora Journeys, Princess, and O) are all booked through the same agent.  It makes my life much easier to deal with a single person/agency, especially when that agency can give us terrific deals with each line.

 

Hank

 

FWIW: Like “preferred partner” TAs, O also has some favorite consortia.

[Hlitner]

21 minutes ago, Flatbush Flyer said:

FWIW: Like “preferred partner” TAs, O also has some favorite consortia.

A big difference in our thinking is that we think in terms of the entire cruise industry (and many cruise lines) where you seem to restrict your thinking to O ).  I have good reason to believe that many of O's "preferred partners" are part of consortiums.  In fact, our favorite two agencies both fit into that box.  All the cruise lines have little choice but to be in bed with the major corsortiums since they generate such a huge amount of business.   To me, what is of great interest, is the fact that cruisers can often benefit from both agency perks and consortium perks.  Many agencies choose to keep their clients in the dark, when some of their perks come from a consortium.  I guess it is not relevant to most cruisers since they happily accept the OBCs and other perks without questioning their source (i.e. cruise line, cruise agency, or travel consortium).

 

Hank

[Flatbush Flyer]

23 minutes ago, Hlitner said:

A big difference in our thinking is that we think in terms of the entire cruise industry (and many cruise lines) where you seem to restrict your thinking to O ).  I have good reason to believe that many of O's "preferred partners" are part of consortiums….…

.…….Many agencies choose to keep their clients in the dark, when some of their perks come from a consortium.  I guess it is not relevant to most cruisers since they happily accept the OBCs and other perks without questioning their source (i.e. cruise line, cruise agency, or travel consortium).

Hank

I’m only concerned about travel and hospitality providers with whom I regularly deal. Saves lots of wasted time and energy. As for understanding the bigger cruise picture, I guess I am somewhat fortunate enough that my professional life pre-retirement involved a portfolio that criss-crossed both the hospitality and maritime industry in broad strokes…..

……That said, when it comes to TAs who keep clients in the dark about the source of certain perks, the ones I’d recommend avoiding are those who go one step beyond and suggest that amenities regularly provided by the cruise line (to all passengers) or via their consortium are coming from their own pockets. 

 

[Carol From California]

On 5/31/2023 at 6:23 PM, HappyTravels4ever said:

Hi,

 

I am not asking (yet?!?!) for TA names, but trying to get an idea of what perks your TA might give for a $20,000 cruise. Gratuities? OBC? Other?

10% cash rebate. Receive check prior to sailing. 

[HappyTravels4ever]

14 hours ago, Classiccruiser777 said:

Cash rebate post cruise, typically about 7%.

 

Thank you. This is exactly the type of answer I was asking about!

[HappyTravels4ever]

12 hours ago, Sthrngary said:

@HappyTravels4ever $20,000 is quite the cruise and I envy the experience you are about to have. 

 

My question is, would you still take the same cruise if you got nothing from your TA except the booking and service?  If so, then here is the strategy I would suggest.

 

1. Choose the Cruise/Brand:  Select the date, time, brand and suite category.
2. Select the best credit card you have with the very best perks for cruises. Make sure when and if you book, who ever you use, at absolute minimum give you those perks.
3. Select a T/A first on quality of service and then on special perks if you choose to go down that path.  

 

The T/A is the last selection because it is also the hardest.  Do you want direct control of your reservation, choose the brand and lose the credit card perks.  Do you want the cheapest ticket than consider third party booking sides that offer great discount with low service.  Or do you want the best perks, and service that would be T/A but always remember.  The more discounts, you have to ask yourself, how much of the service would be discounted as wall.  Just my two cents.

 

Cruise well and enjoy every moment. 

All valid considerations! Thank you.

[Rumpledbumskin]

Let’s lower the temperature here a bit if we can.

 

Many years ago I was looking to buy a car. I went to see a neighbour who was a car salesman at a dealership.  When we found one I liked, we talked price and he eventually offered me some money off, out of his commission. I said I don’t want to eat into your commission, after all, you are a friend.  He said,”Then why did you come to me, and not just any salesman?”.  He said he made the offer and he would still be making money. My point is that he understood that if you treat a customer well they will likely come back.

 

I don’t expect anything from a sales person but I expect that they are the best judge of what they are making on a sale. If they feel they can make an offer to me and still make the money they want, then everyone is a happy camper.  I’d probably go back. As a long time consultant, I know that it’s best not to try to make all the money on one contract. Make a good deal for both sides and you make more in the long run.

 

And I don’t think it is rude to ask a sales person if there is anything else you can do for me on this deal. That’s just part of the process of negotiating a price. 

 

Just my opinion

 

Jim

[Torquer]

We mostly cruise on a different cruise line and the TA we use gives us a direct discount off the price.  Now for an O cruise we are about to book, that TA says that O prohibits giving discounts on the price.  So instead they are offering a very substantial amount of OBC, which is more than we will likely use on the cruise.  Will O refund that leftover OBC back to us after the cruise ends?  I think I have read that they will, but where does it say that in writing?

[avw]

On 5/31/2023 at 9:23 PM, HappyTravels4ever said:

Hi,

 

I am not asking (yet?!?!) for TA names, but trying to get an idea of what perks your TA might give for a $20,000 cruise. Gratuities? OBC? Other?

Typically, between 7 to 10% OBC, refundable type, so, if I don't spend it, I get credit on my credit card from the cruise line at the end of the cruise. I book through online agencies, after picking my own cruise. I prefer to be in charge of my own travel plans, so I don't need or ask for traditional services that travel agents provide, although cruise lines will often require the agent to be the contact for any adjustments. If you require travel agent "services", then you should expect that they will be compensated for them, which would affect any OBC they would offer. .

[LHT28]

3 hours ago, Torquer said:

We mostly cruise on a different cruise line and the TA we use gives us a direct discount off the price.  Now for an O cruise we are about to book, that TA says that O prohibits giving discounts on the price.  So instead they are offering a very substantial amount of OBC, which is more than we will likely use on the cruise.  Will O refund that leftover OBC back to us after the cruise ends?  I think I have read that they will, but where does it say that in writing?

Ask your TA if the OBC is refundable  or non refundable ?

It will  depend on the source

[babydrum]

On 5/31/2023 at 5:23 PM, HappyTravels4ever said:

Hi,

 

I am not asking (yet?!?!) for TA names, but trying to get an idea of what perks your TA might give for a $20,000 cruise. Gratuities? OBC? Other?

My 27 day May cruise is over $20,000 and I received PPG and refundable OBC of about $700.  They did offer cash back after the cruise as an option but I thought this deal was okay.  

[Daniel A]

We will be first time cruisers on "O" and we are interested in finding out if we book a cabin directly on the "O" website, can we transfer that booking to our online TA?  Does "O" offer shareholder benefits?

Thanks.

[LHT28]

2 minutes ago, Daniel A said:

We will be first time cruisers on "O" and we are interested in finding out if we book a cabin directly on the "O" website, can we transfer that booking to our online TA?  Does "O" offer shareholder benefits?

Thanks.

Yes

Yes

[cruisr]

It makes me sad that people think nothing about asking for a rebate, cashback, PPG or any other form of cutting into their TA’s hard earned commissions.  My best friend is my TA and I respect her hard work, insights, recommendations and being there for me and her other clients when things go pear shaped. She is there 24/7 and all clients have her cell and she is always availability.  My husband was a lawyer.  Nobody, ever, ever asked him for a rebate on his fees.  He earned them.  My brother in law is an MD.  Nobody has ever asked him for a rebate on his well earned fees.  I do blame travel agents who started rebating on cruises in order to get business after airlines stopped paying commission.  They did set the precedent to give money back in some form and unfortunately once you go down that path it is hard to turn around.

 

I know there are many “hobbyists” TAs there but there are many, like my friend, who is a professional and earned and should keep her commission

 

Feel free to flame away.

[loveladyc]

On 5/31/2023 at 9:23 PM, HappyTravels4ever said:

Hi,

 

I am not asking (yet?!?!) for TA names, but trying to get an idea of what perks your TA might give for a $20,000 cruise. Gratuities? OBC? Other?

Every Company is different, Sometimes its OBC of  flat amout, Sometimes its a % of the cruise fare, somes times its Prepaid Gratuites, sometimes they give a Loyalty OBC and it changes all the time. Once booked with the cruise line and getting all I can get from the cruise line, I call my TA and ask what I can get if I move the cruise to her conpany.

 

[Sthrngary]

3 hours ago, Daniel A said:

We will be first time cruisers on "O" and we are interested in finding out if we book a cabin directly on the "O" website, can we transfer that booking to our online TA?  Does "O" offer shareholder benefits?

Thanks.

@Daniel AGlad to here it old friend.  Wish we were on the same cruise.  It is my first cruise on Oceania as well.  When I found the cruise I wanted, I booked it and had my agent take I over within 30 days. My approach is find what I want, so my agent really does not have much to do other than transfer it over to themselves.  I do business with my agent because of the incredible amount of work they did for me with so many Covid cancellations. They earned my business and all the commissions.  I still get my AMX cruise perks with my agent.

 

Cruise Well and enjoy every moment!

[Jancruz]

2 hours ago, cruisr said:

It makes me sad that people think nothing about asking for a rebate, cashback, PPG or any other form of cutting into their TA’s hard earned commissions.  My best friend is my TA and I respect her hard work, insights, recommendations and being there for me and her other clients when things go pear shaped. She is there 24/7 and all clients have her cell and she is always availability.  My husband was a lawyer.  Nobody, ever, ever asked him for a rebate on his fees.  He earned them.  My brother in law is an MD.  Nobody has ever asked him for a rebate on his well earned fees.  I do blame travel agents who started rebating on cruises in order to get business after airlines stopped paying commission.  They did set the precedent to give money back in some form and unfortunately once you go down that path it is hard to turn around.

 

I know there are many “hobbyists” TAs there but there are many, like my friend, who is a professional and earned and should keep her commission

 

Feel free to flame away.

Plus 1

Jancruz1

 

[cruiserchuck]

3 hours ago, cruisr said:

It makes me sad that people think nothing about asking for a rebate, cashback, PPG or any other form of cutting into their TA’s hard earned commissions.  My best friend is my TA and I respect her hard work, insights, recommendations and being there for me and her other clients when things go pear shaped. She is there 24/7 and all clients have her cell and she is always availability.  My husband was a lawyer.  Nobody, ever, ever asked him for a rebate on his fees.  He earned them.  My brother in law is an MD.  Nobody has ever asked him for a rebate on his well earned fees.  I do blame travel agents who started rebating on cruises in order to get business after airlines stopped paying commission.  They did set the precedent to give money back in some form and unfortunately once you go down that path it is hard to turn around.

 

I know there are many “hobbyists” TAs there but there are many, like my friend, who is a professional and earned and should keep her commission

 

Feel free to flame away.

I get a discount or OBC on every cruise I book.  I do not specifically ask for a discount/OBC, but only deal with TAs that offer them.

 

Regarding the comment about Doctors, every Doctor I go to offers a huge discount to my insurance company, at least according to the summaries I receive from the insurance company.  I have heard from others that many Doctors offer discounts to non insured patients who pay cash upfront.

[Daniel A]

12 hours ago, cruisr said:

It makes me sad that people think nothing about asking for a rebate, cashback, PPG or any other form of cutting into their TA’s hard earned commissions.  My best friend is my TA and I respect her hard work, insights, recommendations and being there for me and her other clients when things go pear shaped. She is there 24/7 and all clients have her cell and she is always availability.  My husband was a lawyer.  Nobody, ever, ever asked him for a rebate on his fees.  He earned them.  My brother in law is an MD.  Nobody has ever asked him for a rebate on his well earned fees.  I do blame travel agents who started rebating on cruises in order to get business after airlines stopped paying commission.  They did set the precedent to give money back in some form and unfortunately once you go down that path it is hard to turn around.

 

I know there are many “hobbyists” TAs there but there are many, like my friend, who is a professional and earned and should keep her commission

 

Feel free to flame away.

I truly respect your opinions on perks and discounts being offered by TAs.  I also respect that different customers have differing levels of service required from a TA.  If I needed to pick up a telephone and call a TA to arrange a two-week train, bus, car and air vacation next October and I expect the TA to put together all of the arrangements and get back to me, then I agree wholeheartedly.  I do on the other hand, usually do my own research and book my cruises directly with the cruise line and transfer the booking to my online TA who does discount the fare and rebate some of that fare with OBC, specialty dinners and excursions.  I did the lion's share of the work, and my TA still gets a commission, so it is a win-win for both of us.

 

People will look for the best deal they can get for the products they want.  Different vendors will offer special deals for front line workers, first responders, teachers, seniors and there's nothing wrong with taking advantage of those deals.  Some people prioritize using credit cards that offer cash back and airline points when buying needed products.  In closing, I never met a doctor or lawyer or travel agent who didn't negotiate their best deal when purchasing real estate or a car.  That certainly affects the commissions of the real estate agent or car salesperson.  🤷‍♂️ 

Edited August 18, 2023 by Daniel A

[Flatbush Flyer]

12 hours ago, cruisr said:

It makes me sad that people think nothing about asking for a rebate, cashback, PPG or any other form of cutting into their TA’s hard earned commissions.  My best friend is my TA and I respect her hard work, insights, recommendations and being there for me and her other clients when things go pear shaped. She is there 24/7 and all clients have her cell and she is always availability.  My husband was a lawyer.  Nobody, ever, ever asked him for a rebate on his fees.  He earned them.  My brother in law is an MD.  Nobody has ever asked him for a rebate on his well earned fees.  I do blame travel agents who started rebating on cruises in order to get business after airlines stopped paying commission.  They did set the precedent to give money back in some form and unfortunately once you go down that path it is hard to turn around.

 

I know there are many “hobbyists” TAs there but there are many, like my friend, who is a professional and earned and should keep her commission

 

Feel free to flame away.

Your post is typically shortsighted.

 

Rebates (in all sorts of businesses) are a proven revenue generator that increases total bottom line profit by catalyzing repeat purchases and client recruitment.

Our primary TA is well known and well respected in the cruise industry. Not only does it provide rebates ranging from 5 to 10% of the commissionable fare, it issues finder’s fees of several hundred $ for referrals that end up being paying customers.Add to this the reality that many cruise lines pay TA commissions on a sliding scale based, in part, on sales volume AND provide pass through client incentive $ (e.g., to pay gratuities) to those same TAs, and it quickly becomes obvious that a smart TA and its Agents, employing the right Rebate (and related perks) strategies will have net profits that are far higher than if they didn’t rebate. It’s the same reason why TAs pay “dues” to TA consortia that increase each TA’s bottom line by supplying added client incentives and off loading some other TA costs (e.g., advertising).

 

Please recognize that a savvy individual travel agent will always be working to build a client base that focuses on clients who don’t require a ton of handholding and who book numerous and/or longer cruises annually perhaps even with the same single cruise line (preferably premium luxury ones). That same savvy individual agent also will look to align themselves with a Travel Agency (and/or TA consortium) that employs associated customer service reps (to handle issues that may arise regarding TA advocacy) and rewards that Agent well. 

[redraider1966]

4 minutes ago, Flatbush Flyer said:

Your post is typically shortsighted.

 

Rebates (in all sorts of businesses) are a proven revenue generator that increases total bottom line profit by catalyzing repeat purchases and client recruitment.

Our primary TA is well known and well respected in the cruise industry. Not only does it provide rebates ranging from 5 to 10% of the commissionable fare, it issues finder’s fees of several hundred $ for referrals that end up being paying customers.Add to this the reality that many cruise lines pay TA commissions on a sliding scale based, in part, on sales volume AND provide pass through client incentive $ (e.g., to pay gratuities) to those same TAs, and it quickly becomes obvious that a smart TA and its Agents, employing the right Rebate (and related perks) strategies will have net profits that are far higher than if they didn’t rebate. It’s the same reason why TAs pay “dues” to TA consortia that increase each TA’s bottom line by supplying added client incentives and off loading some other TA costs (e.g., advertising).

 

Please recognize that a savvy individual travel agent will always be working to build a client base that focuses on clients who don’t require a ton of handholding and who book numerous and/or longer cruises annually perhaps even with the same single cruise line (preferably premium luxury ones). That same savvy individual agent also will look to align themselves with a Travel Agency (and/or TA consortium) that employs associated customer service reps (to handle issues that may arise regarding TA advocacy) and rewards that Agent well. 

Plus 1.

[Classiccruiser777]

Some of the benefits an agent may offer could be "flow throughs" from the agency's travel consortium. 

 

What is a travel consortium or a travel cooperative? The very very short answer that will get you through a cocktail party banter is this: A travel consortium is a collective of host agencies, travel agencies, and/or travel advisors that join forces and combine resources to increase their industry footprint including buying potential, benefits, & commission levels. 

[jonthomas]

On 6/3/2023 at 10:10 AM, Torquer said:

We mostly cruise on a different cruise line and the TA we use gives us a direct discount off the price.  Now for an O cruise we are about to book, that TA says that O prohibits giving discounts on the price.  So instead they are offering a very substantial amount of OBC, which is more than we will likely use on the cruise.  Will O refund that leftover OBC back to us after the cruise ends?  I think I have read that they will, but where does it say that in writing?

We always get rebates, when sailing O, obcs as well in lieu of flowers and wine.