Commission to a TA

[vesw01]

On Average how much of a cruise fare does a TA make in commission - I know that the more the sell the more they earn - but is is 10% to start etc? In case it matters - it would be for an inside and balcony cabin. I just need a general percentage.

[StaySea]

I'd like to know the answer to this too. we recently booked with our TA (7cabins in total most GS) & I did ALL of the research (,ade her job very easy) when i asked her a few questions she seemed put out.....Sure would like to know how much she was put out comission wise;)

[honeydog714]

I think it varies by agency. Some times they get bonus comissions called over rides but that often goes to the agency itself not the agent. Some agents are just paid employees and get an hourly wage and the owners of the company get the comission. Others get a percentage which starts i believe at ten percent but then they have costs. Like my lady she always gives us a gift or on board credit that comes out of her pocket. So if she made like 300.00 she may spend 100.00 back on us. I think it depends on who you are dealing with,also they don't get paid on the whole cruise, just the base fare not the taxes and stuff

[willysgrandma]

The smallest commission percentage is usually 10%. Bigger agencies get bigger commissions. There is a non-commissionable amount for each cabin too.

 

 

But that doesn't come out of the passengers pockets, it comes out of the cruise lines. RCCL charges the same prices when you book through a TA or if you book through directly through them.

[ocngypz]

There is no answer to your question. There are too many commission structures and too many different agent pay plans.

 

Suffice to say, the majority of full time agents working commission only have a 70/30 % split with the agency. Most full time agents never make over $30,000 a year.

 

Let's assume one inside cabin at $699 and one balcony at $1299. The agency makes the top percentage 16%. The port charges are $159.

 

Total commission earned on the inside by the agency $172.80. The agent gets $51.84. The balcony: total commission $364.80, agent gets $109.44.

 

Then, deduct whatever onboard credit, gifts, etc. offered. It comes out of the commission.

 

Overrides are not commissions. They are advertising dollars earned.

[vesw01]

I am sorry I asked the wrong question

How much of the price of the cruise if the Travel agency getting from the cruise line

If I am paying $1000 for the cruise - how much does the travel agency itself have to pay to RCCL (what is there balance to the cruiseline?)

[lvtotrvl1]

If it is a credit card payment the agency gives the credit card to RCCL and they will charge the entire amount. Commission is paid back to the agency after final payment. If it is a check payment the agency can send the net amount (keeping the commission).

[Nitra]

I see this question come up from time to time, I know the answer since I used to do this for a living but I have to ask, why does it matter? Do you ask any other company how much they make for providing you a service? Do you ask how much the grocery is making off that 100 dollar grocery bill? OR how much the plumber is paid for 500 dollar repair job he did? I always wonder why people want to know how much someone is making.

 

Im not getting on you for asking, I really want to know why you, or anyone, would ask and why it matters..

[vesw01]

I am not asking b/c I want to know how much someone is making for a living, I want to know b/c a travel agency is now trying to charge my family $1000 more for a cruise that we have in writing and final payment is due on Monday. I have a thread going for the last week trying to figure it all out. Their latest excuse is an accouting error. So here is my question if the cruise total for 5 cabins is approx $10,000 how much commission would they be making? If they are making $2,000 then they can eat the $1k mistake b/c they are losing any money. If they are breaking even that is fine too. If they are losing a few hundred dollars and we can come to some sort of compromise and our family isn't our another grand - that would be great too. They want another $400 from me which I don't have....so that is why I am asking.

[BonnieSte]

You took the words right out of my mouth. One customer may be easy but then you get the normal customers that are calling you constantly for silly things when you are trying to get a huge job done, then you get the customers that you just put in 3 hours of work for only to say, no thank you I just found it on line for $10.00 cheaper. :eek:

It's a job, the company needs to be able to pay for the rent, utilities, insurances (which is very expensive ) etc.

If you don't like your travel agent, get one you do like. A good agent will get you more perks then doing it yourself, especially if something goes wrong.

[BonnieSte]

I am not asking b/c I want to know how much someone is making for a living, I want to know b/c a travel agency is now trying to charge my family $1000 more for a cruise that we have in writing and final payment is due on Monday. I have a thread going for the last week trying to figure it all out. Their latest excuse is an accouting error. So here is my question if the cruise total for 5 cabins is approx $10,000 how much commission would they be making? If they are making $2,000 then they can eat the $1k mistake b/c they are losing any money. If they are breaking even that is fine too. If they are losing a few hundred dollars and we can come to some sort of compromise and our family isn't our another grand - that would be great too. They want another $400 from me which I don't have....so that is why I am asking.

 

Did you know the whole price to begin with or did they quote you wrong right from the start?

[lvtotrvl1]

Hi Ves..I have replied on your other thread too..It sounds like this is a B&M agency from your original post on the other thread...I really don't think you need to compromise in any way, since you have the original quote in writing.

[vesw01]

Long story short - they quoted us a group rate and put it in writing that they would give us the group discount - not getting in the long details - their fault, we have it all in writing how much we were supposed to pay per the TA.

 

We did all the research, picked the ship, cabins etc all on our. Called her and booked. We haven't spoken to her since February. The first time was last Friday to call to make final payment - so we are not high maint. We haven't switched cabins, haven't even looked to see if new cabins have come available. Price has only gone up on the cruise so haven't even called for price drops.

[vesw01]

I just want to be able to say "you aren't losing money on this" I think that is fair. They haven't had to do any work for us. Call RCCL and book - hardly any work at all and most of the time they do that online.

 

At this point my parent didn't even have a cabin - RCCL had cancelled my parents cabin b/c the TA had screwed up and they say they weren't ever notified - they cancelled it 2/27/07. So my parents lost the cabin they picked 2/20/07 - which was near the rest of the family.

[vesw01]

I just want to be able to say "you aren't losing money on this" I think that is fair. They haven't had to do any work for us. Call RCCL and book - hardly any work at all and most of the time they do that online.

 

At this point my parent didn't even have a cabin - RCCL had cancelled my parents cabin b/c the TA had screwed up and they say they weren't ever notified - they cancelled it 2/27/07. So my parents lost the cabin they picked 2/20/07 - which was near the rest of the family.

[BonnieSte]

Yikes, sounds like a major mistake was made on your agents end. I would call and speak with her boss, if nothing is accomplised I would definately be speaking to someone at RCCL. You have it in writing, dont take the agents word for what can and cant be done. I would imagine they are just hoping you back down? Good luck and don't give up, just make sure that you write down anyones name and date that you have spoken with.

[rsscaptain]

I would be more than persistent, yet with honey dripping from my lips! ;)

 

"I need this matter to be resolved correctly and soon. I don't want to have to call RCCL myself, as I would rather work this out between us, but I will if necessary." If that doesn't get you anywhere, let them know that you will call your local new station! I'm sure you have one of those problem solver segments on the news.

 

I have used them once and got money back (vacation scam) in a hurry when Sean Daily, (local news guy) came over and got on the phone informing this company of who he was.

 

Recently again all I had to do was say that another reporter had given me some advice, for the local paper to do a story on the outrageous cost of obituaries.

 

None of these companies want the bad press. Just be careful not to sound threatening, but that you won't be railroaded. I wish I could help you. Good luck!

[Pacruzer]

If this is a brick and mortar chances are they are at the lower end of commission schedule 10 % ..But you dont get commission on the port charges or govt fees and the cruisline keep increasing port and govt fees instead of cruise rates to pay less commission...my take is they thought they could sell the other cabins get the tour conductor and give you a break but they didnt sell them and they are stuck with the additional amount and they dont want to lose money or break even because the costs in this business are not cheap as sated by other posters..You are caught in the middle because if you cancell your cruise price is higher ..your only salvation would be a price reduction in the next month or two and then you can recoup some of your money back

[mikedw]

We're a small agency, just two offices and the amount of comm. varies with each cruise line. With some we get special pricing because of the volume we do. This is the second agency I worked for, first one was a large, over 1,000 employess that did mostly goverment and corporate travel, and then here, but both of them have been a set salary which I personally prefer. I can't believe these agents who make these mistakes, wonder how they stay in business.

 

Take care,

 

Michael

[DrivesLikeMario]

You have to remember that the commission is based on CRUISE FARE ONLY, not port charges or government taxes.

 

What many cruise lines have done is decrease the per person fare so that it's really, really low and increase the port charges so they're unusually high, thus paying the TA even less. :(

 

Frankly, on inside cabin bookings after a gift has been sent and any discounts given, the TA makes very, very little. It's hardly worth the time to do them especially if the clients are the type to take up a lot of time asking endless questions, unless the clients tend to book many cruises, then it will eventually pay off.

 

Bottom line, no one is getting rich doing this.

[TPKeller]

I would be more than persistent, yet with honey dripping from my lips! ;)

 

"I need this matter to be resolved correctly and soon. I don't want to have to call RCCL myself, as I would rather work this out between us, but I will if necessary." If that doesn't get you anywhere, let them know that you will call your local new station! I'm sure you have one of those problem solver segments on the news.

 

I have used them once and got money back (vacation scam) in a hurry when Sean Daily, (local news guy) came over and got on the phone informing this company of who he was.

 

Recently again all I had to do was say that another reporter had given me some advice, for the local paper to do a story on the outrageous cost of obituaries.

 

None of these companies want the bad press. Just be careful not to sound threatening, but that you won't be railroaded. I wish I could help you. Good luck!

One of my new favorite things to say in situations like this (when they start coming up with excuses) goes something like:

 

"We can do this the easy way, or we can do this the hard way, but you can be sure that one way or the other, in the end, this will be fixed."

 

Of course said as politely as you can manage. I think it clearly indicates that you will not be bullied, but still gives them the opportunity to do the right thing.

 

Theron

[piercetc4]

sounds like your parents cabin was cancelled ( mistakenly by ta ) back in feb. and now rebooked it at the higher price and are sneakily trying to get you to pay for it...?

this observation based on what you posted here on this thread.............good luck- call and speak to a sup.- you may need to go in there with all your paperwork to show them what you booked at and agreed to pay- have you been to see them in person with your proof and what you agreed to pay?

[Nitra]

I am not asking b/c I want to know how much someone is making for a living, I want to know b/c a travel agency is now trying to charge my family $1000 more for a cruise that we have in writing and final payment is due on Monday. I have a thread going for the last week trying to figure it all out. Their latest excuse is an accouting error. So here is my question if the cruise total for 5 cabins is approx $10,000 how much commission would they be making? If they are making $2,000 then they can eat the $1k mistake b/c they are losing any money. If they are breaking even that is fine too. If they are losing a few hundred dollars and we can come to some sort of compromise and our family isn't our another grand - that would be great too. They want another $400 from me which I don't have....so that is why I am asking.

 

Okay makes sense, I have not seen the other thread. There really is no way to know how much the agent is making BUT I can say this. if the error is the agents part, too bad. I know when I did this for a living, if we made an error, we ate it! Too bad for us, good for the client. I might tell them I made the error but they would not be paying for my mistake.

 

I agree you should do what some suggested.

 

With 5 cabins it is not a group, that is only 10 berths so they did not get extra perks for group booking, ie extra commission, TC credit etc.

 

If, say each cabin is 2k, you can take away about 400 off the top for port and tax, 200 per person, it might even be more, depending. but for this example we will use 400. that leaves 1600 cruise fare that is commissionable. IF the agency makes 10 percent, which is what we will assume, then they make about 160 per cabin, so about 800 for the whole booking. Even if they are making 16 percent, then they are making about 1280 for the 5 cabins. Not really a huge amount of money. .... again I just used these figures to give you an idea. Chances are the numbers are a bit high but close enough.

 

 

I wonder what the mistake is? I wonder if they misquoted you and typed up the information incorrectly, which is the invoice they sent you, they just put this information into the computer manually. I would ask too for the passenger copy of the invoice they received from the cruiseline. I used to attach those to my invoices so they knew what the cruiseline was charging and what I put into my computer was the same.

[Nitra]

sounds like your parents cabin was cancelled ( mistakenly by ta ) back in feb. and now rebooked it at the higher price and are sneakily trying to get you to pay for it...?

 

 

I am thinking the same thing. I bet the TA realized their error and now are scrambling to fix it and are trying to make you pay the difference

[mikedw]

We do a lot of escorted group tours and with those we give away stuff like jackets and dinners and things like that, but on regular everyday cruise bookings, they might get a totebag or fannypack and that's only if they're a repeat customer. Our clients who book high end, meaning anything over 10 grand then we do things for them. The majority of our clients keep coming back because of our service. I know of very few businesses who give you free stuff for using them.

 

Take care,

 

Michael