Travel Agency Commissions?

[rjg41]

Eileen and Jay ~ I believe the answer to your question is no. Excursions are booked directly with the cruise line (or independently) and the TA isn't involved at all. Perhaps some agencies will book excursions for you (never tried that) and may get commissions that way, but they don't get anything from excursions you book with the cruiseline.

 

None of the major cruise lines pay commissions on shore excursions.

[Dale]

I agree that I want my TA to be making money off the deal...because if they're not, then they are a business risk. This is why I am leery of TA's who "give the store away", i.e. give huge OBC's while offering full-service trip planning. As I pointed out in the other thread (which the final poster in there seemed to miss), whatever commission is made on the sale does not all go into the TA's pocket - business expenses must come out of there as well. So if they are giving away too much too often, this is just not a business model that can be sustained.

Since I was the final poster to respond to that thread I assume you are talking about me.

I was commenting about the profit you mentioned being made on the numbers you were using. You stated there was a profit of $200 after giving a $250 OBC on a $450 commission. In my reply I said this was misleading. I think our disagreement is about what profit is.

 

Here is a copy and paste of the part of your post I was replying to.

 

Your quote, “Here, I'll elaborate, for simplicity. If a TA sells a cruise that costs, say, $4000, and he makes a commission of, say, $450 (I'm just throwing numbers out here, no basis in reality...just numbers). That $450 is the only money he's going to make on that deal. Now, if he gives away an OBC of, say, $250, that leaves him with a grand total of $200 profit on the deal. If he ends up spending 4 hours on all the work required for that sale, he made $50 an hour...not too shabby. He's not going to get rich, but if he sells enough of these (i.e. operating on VOLUME), he'll make enough profit to stay in business“.

 

No where in the part I was commenting on was there any mention of expenses, only profit that was being made by the TA.

Out of curiosity I looked up profit in the dictionary and came up with this definition, excess of income over expenditure

[lvtotrvl1]

Ok...let's take a more common scenario...avg price cruise ov stateroom

Mariner of the Seas 7/20 for two adults

Cruise 2480

Port Charges 318 non commissionable

tax 105.54 non commissionable

fuel 112.00 non commissionable

Total 3015.54

 

The largest agencies will make $396.20 on this cruise. Most agents may receive 20% of this depending on their sales volume (alot don't earn commission..straight salary)...so the average TA may make $79.24 commission. Some Independent Contractors may make 80% of the commission depending on what host they are with...so in this example the Independent contractor will make 396.96. Out of this 396 the IC will pay phone bills, office expenses, taxes and a fee to the host agency monthly. So when all is said and done, this Independent contractor may NET 50.00 off that average price booking. Not sure how much of OBC can be given on this net rate.

 

Many times the larger agencies will have groups on a sailing where an amenity will be OBC. Many customers don't really know where the OBC is coming from..the agent or group amenity. Most agents on these boards and elsewhere have been in the business because we love it. Can you make money? Sure, with the right agency and experience, but what is wrong with that? We all work to pay bills, and hopefully to go on vacations...I just don't see why a TA is expected to give money back to their clients...don't know of many professions where that is done...or where a client will walk in and say...I realize your service costs 150.00 but can you take me to dinner also?

 

Just my 2 cents....

[Sky Sweet]

Ok...let's take a more common scenario...avg price cruise ov stateroom

Mariner of the Seas 7/20 for two adults

Cruise 2480

Port Charges 318 non commissionable

tax 105.54 non commissionable

fuel 112.00 non commissionable

Total 3015.54

 

The largest agencies will make $396.20 on this cruise. Most agents may receive 20% of this depending on their sales volume (alot don't earn commission..straight salary)...so the average TA may make $79.24 commission. Some Independent Contractors may make 80% of the commission depending on what host they are with...so in this example the Independent contractor will make 396.96. Out of this 396 the IC will pay phone bills, office expenses, taxes and a fee to the host agency monthly. So when all is said and done, this Independent contractor may NET 50.00 off that average price booking. Not sure how much of OBC can be given on this net rate.

 

Many times the larger agencies will have groups on a sailing where an amenity will be OBC. Many customers don't really know where the OBC is coming from..the agent or group amenity. Most agents on these boards and elsewhere have been in the business because we love it. Can you make money? Sure, with the right agency and experience, but what is wrong with that? We all work to pay bills, and hopefully to go on vacations...I just don't see why a TA is expected to give money back to their clients...don't know of many professions where that is done...or where a client will walk in and say...I realize your service costs 150.00 but can you take me to dinner also?

 

Just my 2 cents....

 

Hi lvtotrvl :)

 

A number of people have posted that they received OBC that were higher than $700. How can any travel agent afford to do that?

[lvtotrvl1]

Hi lvtotrvl :)

 

A number of people have posted that they received OBC that were higher than $700. How can any travel agent afford to do that?

 

I really have no idea. In over 13 years in the business, dealing nationally with clients, I have never heard of that large of an OBC (from an agent) on a typical cruise. I have also read where people have received those amounts, but I really have no clue. It may be a combination of cruiseline OBC and TA, but it still is quite a bit....and sometimes, I don't believe everything I read either:) . I have had clients call and tell me they found a cruise that's 100.00 , or 200 etc cheaper than mine with OBC, and when I check the agency they are referring to, the price they are giving me is usually incorrect ( I don't think they think we will actually check on competitors pricing...). I work as an IC for a very large (one of the largest) agencies, and I would rather give that business up than to lose money. At the end of the day, it just isn't worth it. I give OBC whenever I can, along with price reductions and no cancellation fees, but we are all working to stay in business.

[Leejnd4]

Since I was the final poster to respond to that thread I assume you are talking about me.

I was commenting about the profit you mentioned being made on the numbers you were using. You stated there was a profit of $200 after giving a $250 OBC on a $450 commission. In my reply I said this was misleading. I think our disagreement is about what profit is.

 

Here is a copy and paste of the part of your post I was replying to.

 

Your quote, “Here, I'll elaborate, for simplicity. If a TA sells a cruise that costs, say, $4000, and he makes a commission of, say, $450 (I'm just throwing numbers out here, no basis in reality...just numbers). That $450 is the only money he's going to make on that deal. Now, if he gives away an OBC of, say, $250, that leaves him with a grand total of $200 profit on the deal. If he ends up spending 4 hours on all the work required for that sale, he made $50 an hour...not too shabby. He's not going to get rich, but if he sells enough of these (i.e. operating on VOLUME), he'll make enough profit to stay in business“.

 

No where in the part I was commenting on was there any mention of expenses, only profit that was being made by the TA.

Out of curiosity I looked up profit in the dictionary and came up with this definition, excess of income over expenditure

 

Dale, clearly you didn't read the rest of that same post, where I described this very concept:

 

But if he had to spend a total of 20 hours, between researching different cruises, cabins, dates, hotels, talking to the client, talking to Celebrity, offering options, yadda yadda, then he did all that work for $10 an hour. I don't know about you, but I don't work for $10 an hour, and I don't think most TA's are going to be able to make a living working for $10 an hour either. Keep in mind that this is not a McJob - out of that $10 an hour the TA has to pay any overhead (telephone costs, office space, etc.), not to mention taxes. Consequently, if a TA tends to focus on FULL SERVICE rather than VOLUME, if he wants to make enough money he's going to have to give less of an OBC. (Unless, of course, he's perfectly happy operating at a loss...which most business people are not.)

 

I didn't think it was necessary to elaborate on this concept twice in one post...I thought most people would be able to recognize that if the TA has to factor in overhead, taxes etc. on the $10 an hour, he'd also have to factor it in on the $50 an hour. Regardless of how much he makes an hour, overhead must be factored into the equation.

 

I'm not sure what the point of your post is, other than to pick apart my use of the term profit. If your issue is that I used the term "profit" incorrectly, please note that I was already trying to explain some pretty basic business concepts here. If I start breaking out the MBA talk, I'll lose the audience completely. :rolleyes:

 

In reality, your post makes MY point even stronger. My point is that a full-service TA CANNOT STAY IN BUSINESS if they give large OBC's, because they won't MAKE a profit. Discount TA's that don't give the full whiz-bang service thing can offer larger OBC's because they don't have to do as much work. It's as simple as that.

 

And to take it a step further -- discount TA's often have less of the overhead you describe, because they often don't maintain an office...and some don't even have phones! So that allows them to offer even bigger OBC's, while still make a...yes, I'll say it...profit.

 

I appreciate that you only wanted to comment on one small part of my post...but it sometimes helps to read the whole thing. :)

[Leejnd4]

I work as an IC for a very large (one of the largest) agencies, and I would rather give that business up than to lose money. At the end of the day, it just isn't worth it. I give OBC whenever I can, along with price reductions and no cancellation fees, but we are all working to stay in business.

 

Someone asked me in another thread why I even concern myself with whether or not my TA is making a profit on my deal. The reason is what I highlighted above from your post. I recognize that TA's need to make a living, and I respect when a TA would rather not handle my sale because there's not enough money in it for them. That's one of the reasons I generally go with online discount TA's, since I know their business model allows them to sell to me at a very low profit and still stay in business. :)

[lvtotrvl1]

Someone asked me in another thread why I even concern myself with whether or not my TA is making a profit on my deal. The reason is what I highlighted above from your post. I recognize that TA's need to make a living, and I respect when a TA would rather not handle my sale because there's not enough money in it for them. That's one of the reasons I generally go with online discount TA's, since I know their business model allows them to sell to me at a very low profit and still stay in business. :)

 

Lee, what you say is not always correct. My agency can be considered an online discount agency, but we still don't discount the way you are saying. I'd love to hear what you know about the business model?

 

Some of the discount agencies that you talk about are actually Independent contractors trying to make a sale...One good example is the company where you can have competing TA's email you quotes. Many of these have actually gone out of business, or have had their rights from Royal Caribb and Celebrity taken away. I was part of that site for awhile, figuring that it would be extra business for me....I couldn't touch the discounts....they were actually losing money.

 

Bottom line, it's all a personal decision of how and why you book with a specific agency, or cruiseline direct. Personally, I feel a bit degraded when people expect a gift or OBC.

[Leejnd4]

Lee, what you say is not always correct. My agency can be considered an online discount agency, but we still don't discount the way you are saying. I'd love to hear what you know about the business model? [/Quote]

I am not a TA, I should make that clear. And given that, there are surely many things I do not know about the travel agency business...nor do I claim to know them. I am, however, a small business owner. The concepts I am mentioning are nothing more than basic theories that apply to any business: you have to have enough profit in a sale to make it worth doing. You have to factor in all costs, including labor hours, to determine if there is enough profit in the deal. If you are asked to provide a discount, you need to have a good idea of how much work (labor hours) you will need to invest in the sale. If it will be too many, then it doesn't make sense to do the deal. If the client is one that will require fewer labor hours than other clients, to the point where you CAN discount the deal and still make a profit, then it's worth doing.

 

Some of the discount agencies that you talk about are actually Independent contractors trying to make a sale...One good example is the company where you can have competing TA's email you quotes. Many of these have actually gone out of business, or have had their rights from Royal Caribb and Celebrity taken away. I was part of that site for awhile, figuring that it would be extra business for me....I couldn't touch the discounts....they were actually losing money. [/Quote]

This is the "due dilligence" part I was referring to. I do have some knowledge of the TA industry, and understand about IC's. I do my research into a TA before I will choose to use them. I have chosen NOT to go with a TA that was offering the best deal, because I didn't feel comfortable with them.

 

Bottom line, it's all a personal decision of how and why you book with a specific agency, or cruiseline direct. Personally, I feel a bit degraded when people expect a gift or OBC.

You are correct that it is a personal decision, based on many different factors.

 

The part I don't understand is why you feel "degraded" when someone asks for an OBC. It's just a sale...they are asking for a discount. I ask for OBC's, and I cannot imagine why a TA would feel "degraded" by this. Nor do I feel I am being "insulting" by doing this (as I was accused in another thread). This is a sale, not a romance. I'm looking for the best deal. If your business model, or style of doing business or whatever, makes it unprofitable for you to give me the discount (OBC) that I am looking for, that is fine. I will go to another TA. As I've said earlier, I do not invest emotion in this - it's not an emotional issue. It's simple dollars and cents - it's called "negotiating". Why all the angst?

[Sky Sweet]

Just to make an analogy, I wouldn't mind paying sticker price for a car if everyone else did. However, since no one does, I would feel like a sucker if I did.

 

I think that is part of the problem we are seeing on this thread. At one point in time a person went to a TA to discuss vacation options and then booked the one they wanted. They never even thought about shopping around to see if another TA could get them the same one for less, because that was the price. However, when you read these boards, it is easy to feel like a sucker for paying sticker price for a cruise.

[lvtotrvl1]

 

The part I don't understand is why you feel "degraded" when someone asks for an OBC. It's just a sale...they are asking for a discount. I ask for OBC's, and I cannot imagine why a TA would feel "degraded" by this. Nor do I feel I am being "insulting" by doing this (as I was accused in another thread). This is a sale, not a romance. I'm looking for the best deal. If your business model, or style of doing business or whatever, makes it unprofitable for you to give me the discount (OBC) that I am looking for, that is fine. I will go to another TA. As I've said earlier, I do not invest emotion in this - it's not an emotional issue. It's simple dollars and cents - it's called "negotiating". Why all the angst?

 

There really is no angst, because my business does very well, mostly on repeat business. Why shouldn't I feel a bit degraded when people expect something in return in addition to my service for them? I don't know of many businesses where this is practiced. You say you are a business owner...what would happen if 8 out of ten people expected something in return in addition to your expertise, service etc.?

[Leejnd4]

There really is no angst, because my business does very well, mostly on repeat business. Why shouldn't I feel a bit degraded when people expect something in return in addition to my service for them? I don't know of many businesses where this is practiced. You say you are a business owner...what would happen if 8 out of ten people expected something in return in addition to your expertise, service etc.?

 

Okay, I think I see the gap in our discussion. I believe you are referring more to people who ask for "gifts" as opposed to an OBC. You're right, I would never dream of asking a TA for a "gift". That seems kind of presumptuous. But an OBC is a different thing - in today's cruise marketplace, as created by the policies of many of the cruise lines, the only way to discount a sale is by offering an OBC. Consequently, an OBC is not a "gift", akin to a bottle of champagne or flowers or whatever. It is, plain and simple, a discount. I consider asking for an OBC to be nothing more than negotiating for a better deal.

 

I am a freelance writer. Many of my clients engage in at least some negotiating. I try to price my proposals such that clients don't feel a need to - hopefully they'll believe that the price I quote is a fair one. But sometimes I come in too high. When that happens, I HOPE they will come back to me and tell me that they think it is too high, and to take another look at the numbers. Hey, I've got competition out there -- if my competition is offering the same project at a lower price, and they will do just as good a job, why should the client go with me? Sometimes I'll stick to the quoted price - if I feel the client is going to be demanding, or require a lot of rework and editing, then it doesn't make business sense to do the deal if the labor hours are going to be too high. I'll let him take his business to another writer who might be more willing to work for less. Other times I'll drop the price to win the deal. It's a simple business decision.

 

I have never felt degraded, or insulted, or any other negative emotion during the negotiating phase of the sale. It's a standard business practice.

 

It's great that your business is doing so well with repeat business. But you might find that if you look at OBC's as purely a negotiating factor, rather than a "personal gift", you will feel better about those clients who do ask for them. Food for thought! :)

[Leejnd4]

Just to make an analogy, I wouldn't mind paying sticker price for a car if everyone else did. However, since no one does, I would feel like a sucker if I did.

 

I think that is part of the problem we are seeing on this thread. At one point in time a person went to a TA to discuss vacation options and then booked the one they wanted. They never even thought about shopping around to see if another TA could get them the same one for less, because that was the price. However, when you read these boards, it is easy to feel like a sucker for paying sticker price for a cruise.

You make an excellent point. One thing I want to point out, though, is that not all cruise shoppers want to do all the upfront work involved in planning a vacation. And that's perfectly understandable. However, if they are going to ask their TA to do it, they need to expect to pay a premium for that. Service costs money - as well it should. So any cruise shopper who uses their TA for more than just booking the cabin should NOT feel like a sucker for paying sticker price - or at least closer to it. It's just a different type of sale. :)

 

On the other hand, if a cruise shopper is, like me, using their TA for nothing more than booking the cabin, they should feel no qualms about asking for that OBC. That's kinda the important point I'm trying to get across. Some posters in here seem to feel that we're doing something wrong by asking for the discount. I strongly disagree, and encourage cruise shoppers like me to go right ahead and ask...and don't let anyone make you feel bad about it. You are doing nothing more than being a smart shopper.

[lvtotrvl1]

Sorry..OBC and gift are the same thing...they both are paid for out of commission...absolutely NO difference whatsoever.

[Leejnd4]

Sorry..OBC and gift are the same thing...they both are paid for out of commission...absolutely NO difference whatsoever.

 

I can assure you that not all TA's feel the same way. I'm sorry that you do - it must make doing business more challenging for you.

 

Perhaps it's helpful for you to know that many cruise shoppers feel as I do - that an OBC is nothing more than a discount, and we do not feel that we are being insulting or degrading in the least by asking for one. You are free to feel however you wish about it, of course, and you have the option of choosing not to sell to clients like us - and that's fine. There are plenty of very successful, high-quality TA's out there who will. :)

 

I can tell you that I would definitely not do business with a TA who felt insulted or degraded by my asking for an OBC. It's a business deal, nothing more, nothing less.

[lvtotrvl1]

I can assure you that not all TA's feel the same way. I'm sorry that you do - it must make doing business more challenging for you.

 

Perhaps it's helpful for you to know that many cruise shoppers feel as I do - that an OBC is nothing more than a discount, and we do not feel that we are being insulting or degrading in the least by asking for one. You are free to feel however you wish about it, of course, and you have the option of choosing not to sell to clients like us - and that's fine. There are plenty of very successful, high-quality TA's out there who will. :)

 

I can tell you that I would definitely not do business with a TA who felt insulted or degraded by my asking for an OBC. It's a business deal, nothing more, nothing less.

 

Don't worry about how I do business...I'm doing just fine..and very happy with my clients. I do know how other cruisers feel, as I've been in business along time, and read these boards very often. Everyone has their own way of conducting business, whether buying or selling and as long as it works for them I think it's great. That's what makes the world go round. I have given my opinion on the subject asked and refuse to go around in circles with one poster, so I'm handing this back to other posters and moving on:)

[BurBunny]

Just to make an analogy, I wouldn't mind paying sticker price for a car if everyone else did. However, since no one does, I would feel like a sucker if I did.

 

I think that is part of the problem we are seeing on this thread. At one point in time a person went to a TA to discuss vacation options and then booked the one they wanted. They never even thought about shopping around to see if another TA could get them the same one for less, because that was the price. However, when you read these boards, it is easy to feel like a sucker for paying sticker price for a cruise.

 

There's a bit of a disconnect with your analogy with the car purchase. If you're purchasing from a dealer, they deal exclusively with 1 or possibly 2 different lines of cars. It's more analogous to purchasing directly from a cruise line than it is to purchasing through an agent. They won't tell you there's another brand out there which offers a better suited option.

 

There are car brokers out there who will help you determine what car best suits your needs, among all the car brands, and assist you with that purchase. That is the true direct analogy to a full-service agent.

 

As an agent who does provide full service, what I find offensive is the suggestion that someone should discuss vacation options (which is time, knowledge and experience from an agent) and then go out and "shop" for the best price. The agent who was used to obtain the information, and from whom you took and used their experience, should be given the sale. It would be like going to a local store which stocks many brands of something you are interested in, trying on the various items, then going online to purchase for a slight discount. The retail store has paid up front for their inventory, you felt the need to try on the items before you made a decision, but didn't give that store your business. You obtained value from that store, but didn't compensate them for it.

 

If you obtain value from the service provided, you need to give your business to that person/store. I do buy online, but if I've gone to a retailer to obtain information (either a service provider or a store where I obtained knowledge), I'm going to buy from them I place value on their knowledge, experience and inventory. I've used them. It offsets any "savings" I get from somewhere else.

 

Okay, I think I see the gap in our discussion. I believe you are referring more to people who ask for "gifts" as opposed to an OBC. You're right, I would never dream of asking a TA for a "gift". That seems kind of presumptuous. But an OBC is a different thing - in today's cruise marketplace, as created by the policies of many of the cruise lines, the only way to discount a sale is by offering an OBC. Consequently, an OBC is not a "gift", akin to a bottle of champagne or flowers or whatever. It is, plain and simple, a discount. I consider asking for an OBC to be nothing more than negotiating for a better deal.

 

Oh, believe me, clients ask for outright gifts, too. Ask for a specific type of wine, and some have even switched agents when a bon voyage gift wasn't given. And yes, it is rather insulting, as it's usually the highest maintenance clients who do it - ones with whom I've spent hours and hours of time.

 

But I disagree that an OBC isn't a gift. It comes out of my commission, just as a bon voyage gift does. My bottom line is affected in exactly the same way. It changes my hourly compensation for that particular transaction identically. I'm not insulted or feel degraded when a potential client asks for one, and I'm upfront why I don't offer them out of my commission in almost every case.

 

I do offer onboard credits when I can in the form of group amenities. I find every way I can to lower the price of the cruise for my clients, such as not charging change/cancellation fees, no service/delivery fee, and honoring applicable fare reductions. I admit, those seeking an agent solely on price will find an agent who is willing to work for almost nothing, or even take a loss. I won't do that, and I tell prospective clients who ask for discounts that. Most of my clients find tremendous value in what I offer them. If they don't, another agent is a better fit for them.

 

But an OBC coming from my commission is still a gift. It's just one given to try to elicit business, rather than a thank you for choosing to work with me.

[bobbyleduck]

Somebody once said, "Only fools pay retail," and I believe that is the point many of us are trying to make. If there are travel agents out there who are willing to give (gift, whatever) OBCs, wine or whatever, then they have established the market price and anybody who pays more for an order taker is not making wise use of their limited resources.

 

On the other hand, if there are people who need the hand-holding services of a "full service" travel agent, and if they're willing to pay for the service, then there is no reason those professionals should not exit and no reason they shouldn't be able to charge a reasonable fee for their services.

 

Happy cruising to all who can still afford to cruise!

 

Bob

[bugsy1968]

I can assure you that not all TA's feel the same way. I'm sorry that you do - it must make doing business more challenging for you.

 

Perhaps it's helpful for you to know that many cruise shoppers feel as I do - that an OBC is nothing more than a discount, and we do not feel that we are being insulting or degrading in the least by asking for one. You are free to feel however you wish about it, of course, and you have the option of choosing not to sell to clients like us - and that's fine. There are plenty of very successful, high-quality TA's out there who will. :)

 

I can tell you that I would definitely not do business with a TA who felt insulted or degraded by my asking for an OBC. It's a business deal, nothing more, nothing less.

 

I must say I found reading this thread to be very frustrating. As a 20 year veteran of the Travel Industry, I would be very offended if someone were to ask me how much I was making on their booking. When you buy an apple at the grocery store, do you ask them how much it cost them? Or, when you buy furniture, clothes, etc. would you even dream of asking this? As a TA, I would not do business with a client that was unable to recognize the value that I bring to the table - if saving a few $$ in OBC is more important than the relationship and quality/service provided - then don;t let the door hit you on the way out.

 

Sorry if this sounds harsh, but I pride myself on the extensive knowledge, service and expertise I provide, and always do my best to offer my clients the maximum of benefits (i.e. upgrades, OBC, amenities, etc.) at the lowest possible cost but this just goes too far.

[bobbyleduck]

I must say I found reading this thread to be very frustrating. As a 20 year veteran of the Travel Industry, I would be very offended if someone were to ask me how much I was making on their booking. When you buy an apple at the grocery store, do you ask them how much it cost them? Or, when you buy furniture, clothes, etc. would you even dream of asking this? As a TA, I would not do business with a client that was unable to recognize the value that I bring to the table - if saving a few $$ in OBC is more important than the relationship and quality/service provided - then don;t let the door hit you on the way out.

 

Sorry if this sounds harsh, but I pride myself on the extensive knowledge, service and expertise I provide, and always do my best to offer my clients the maximum of benefits (i.e. upgrades, OBC, amenities, etc.) at the lowest possible cost but this just goes too far.

 

Well, as a 30-year-veteran of making my own travel arrangements, and then handing them off to a travel agent who earns a commission on my many hours of hard work, I would not do business with any travel agent who didn't recognize the value that I've brought to his/her table, and made this obvious by his/her unwillingness to share the wealth.

 

Happy cruising to all who can still afford to cruise!

 

Bob

[Leejnd4]

Well, as a 30-year-veteran of making my own travel arrangements, and then handing them off to a travel agent who earns a commission on my many hours of hard work, I would not do business with any travel agent who didn't recognize the value that I've brought to his/her table, and made this obvious by his/her unwillingness to share the wealth.

 

EXACTLY!

 

Seriously, I'm a bit rattled by all these TA's who don't seem to be understanding my point, and continue to beat the same horse, insisting that there is something unseemly about educated consumers wanting to do our homework, understand the numbers behind our purchases, and negotiate for the best deal. I'm especially puzzled by those who associate all these negative emotions and connotations ("degrading" "insulting") to what truly is nothing more than educated comparison shopping. Yes, of COURSE I realize that OBC’s and “gifts” come out of the same commission. I personally don’t want “gifts”. I’d rather buy my own wine. I want cold hard cash – in the form of a discount, or OBC. And I believe I deserve one, because my sale is going to be significantly easier than a buyer who doesn't do all the legwork himself.

 

I must say I found reading this thread to be very frustrating. As a 20 year veteran of the Travel Industry, I would be very offended if someone were to ask me how much I was making on their booking. When you buy an apple at the grocery store, do you ask them how much it cost them? Or, when you buy furniture, clothes, etc. would you even dream of asking this? As a TA, I would not do business with a client that was unable to recognize the value that I bring to the table - if saving a few $$ in OBC is more important than the relationship and quality/service provided - then don;t let the door hit you on the way out.

 

Sorry if this sounds harsh, but I pride myself on the extensive knowledge, service and expertise I provide, and always do my best to offer my clients the maximum of benefits (i.e. upgrades, OBC, amenities, etc.) at the lowest possible cost but this just goes too far.

 

It most certainly does NOT go too far. I do not need all of your extensive knowledge and expertise, nor do I want to pay a premium for it. I should not be made to feel bad for asking for a better deal, since I don’t need all your work. You don’t have to give it to me, and it sounds as if you have enough customers who DO value all your expertise and service to keep your business successful. That’s great! But I do not need that type of service. So I will take my business to a TA who meets MY needs – and that is, to give me a bigger discount…which I deserve, because I’m not going to use much of his time or services.

 

I’m finding this frustrating too…because we are being told over and over that there is something wrong with asking for a discount. Let me just make this clear for all the new cruise shoppers out there: THERE IS NOTHING WRONG WITH ASKING FOR A DISCOUNT. I’m sure you’ve done it yourself on something you’ve purchased. Were you made to feel as if you were being degrading or insulting?

 

Nor is there anything wrong with wanting to know how much the grocer paid for the apple, or the furniture store paid for the chair. It’s all part of being an educated consumer. You may not want to know…but I do. (Well, not about the apple - too small, don't really care...but big purchases? ABSOLUTELY!) So yes…I WOULD dream of asking. Not every merchant is going to tell me, but it’s not an insult for me to ask. It’s just educating myself.

[smeyer418]

in some states splitting a commission is illegal as its a form of bribery. Probably for TA's which most states don't license its not much of an issue but you can say the same thing about an insurance agents commission where you have done all the work and have to go through an agent to get the insurance in most states rebating splitting the commission in such cases IS illegal. some agents will do this some won't. Many times a person spends hours with someone and gets no commission as they go somewhere else so sometimes they get a commission with minimal work and you want them to share it. My 2 cents for what its worth. that is why some say no....

[Leejnd4]

in some states splitting a commission is illegal as its a form of bribery. Probably for TA's which most states don't license its not much of an issue but you can say the same thing about an insurance agents commission where you have done all the work and have to go through an agent to get the insurance in most states rebating splitting the commission in such cases IS illegal. some agents will do this some won't. Many times a person spends hours with someone and gets no commission as they go somewhere else so sometimes they get a commission with minimal work and you want them to share it. My 2 cents for what its worth. that is why some say no....

 

Insurance is a completely different product than travel. There are legalities associated with insurance that do not impact travel purchases. I don't know enough about insurance sales to be able to speak knowledgably about it, so I won't even try to do a comparison.

 

I think I'm pretty much done here. My intention was to clarify the following:

 

1) There is nothing wrong with wanting to know the numbers behind the deal (price, commission, OBC, etc etc).

 

2) There is nothing wrong with asking for an OBC.

 

3) There is nothing wrong with comparison shopping.

 

Different consumers have different needs, and we are fortunate that there are many different types of TA's out there offering various levels of service, so that all of our needs can be met. Hopefully there are some new cruisers out there who have been enlightened by our discussion, and have learned some new things about purchasing travel. :)

[Captain Jake]

After reading this thread.I'm come to the conclusion that travel agents earn their keep.The gall of some people.It a little wonder that some TA's feel the need to charge cancellation or transfer fee.Ii'm sure some will transfer over a dollar .Pity,Pity

[mncruise]

I am reading the posts and as you are reading, we usually get 10% of the cruise fare; not the air now in most cases, not on the taxes and fees and not on the fuel charge and not on most shore excursions. so we do not get 10% of the total cost of the cruise or tour.

My husband and I cruise a lot and the majority of our cruises are the same as what you pay as a guest on a cruise ship. We do seminars at sea for classes so we can know the ships and how to sell you the right product and usually get a lower rate, (not the air and taxes, etc.).

Insurance gives us a small commission and as all travel agents suggest, it is your best interest to take it.

Most of us are professionals and spend hours on webinars and trade shows to learn our products. A lot of cruise lines have classes for us online and we spend hours at them. Like any profession, it takes extra work.

Most of us like what we do and also enjoy travel.

Find a good TA you like and who will work with you.

Thanks for the good words from everyone.

Leona