How do travel agents make their money

[prettybrowneyes]

I have sailed on CC 4 times. (I think I am an addict:p). Of the 4 times, we have only used a PVP once. Can anyone tell me how TA's make their profits?

[summer08bride]

I have sailed on CC 4 times. (I think I am an addict:p). Of the 4 times, we have only used a PVP once. Can anyone tell me how TA's make their profits?

 

I'm pretty sure TAs get a set commission. For example, 10% of the booking price, which would then be paid by the cruiseline. Some TAs will discount the cruise price, taking money out of their commission to try to get people to book with them. This is my understanding of how it works.

[Mego0427]

I'm pretty sure TAs get a set commission. For example, 10% of the booking price, which would then be paid by the cruiseline. Some TAs will discount the cruise price, taking money out of their commission to try to get people to book with them. This is my understanding of how it works.

 

yup!

[shippmates]

TA are paid commissions from the cruiseline. The rate can be anywhere from 10% to 14% depending on the amount of total sales with the cruiseline and the agency they are working for.

[nursedebbiepink]

great question. i always wondered how much commission they got.

[flagger]

TA's make money several ways:

 

Commission on part of the fare the client pays, there is no commission on Taxes and other parts of the fare.

 

Commission on travel insurance they sell.

 

Commission on shore excursions they sell.

 

Fees they charge their clients for booking.

[pnjkeith]

Some TAs book group cruises, then keep the perks instead of giving them to the group.

[Tapi]

My 2 cents:

 

Although there are MANY TA's that still conduct their business ethically, professionally and competitively, there are several that are getting "creative" to generate revenue.

 

In addition to the 10-15% commission they collect, some travel agencies are now charging an (in-house) "booking fee" ranging anywhere from $15 to $50 per passenger. Also these agencies are now charging (in-house) change fees and cancellation fees in addition to anything that Carnival may be charging.

 

Word of the wise: If a TA is cutting their commission in order to get you to book through them, read the fine print very carefully as they may be getting you somewhere else.

P.S. Although Carnival CAN'T prevent a TA from cutting their own commission to undercut everybody else, they do frown upon this practice. Carnival's philosophy is that TA's should compete based on product knowledge, professionalism, and customer service, and NOT on price.

 

That's why we see so many horror stories here on Cruise Critic that usually begin with "I booked throug XYZ because they offered me a great discount, however...."

[jetskier]

And dont forget that some work as independants through a travel agency so they can use that agency's number. The fee is usually $25 for each booking they have to pay the agency. Also if they use a service such as Cruise Compete for referrals, that agency is also getting a cut for one year of any bookings you make with that agent.

 

Dave

[JES11583]

Also.. some TA's (like mine).. will give up some of their commission and put it towards the customer/client and take some off the price of their trip... which is greatly appreciated by the customer