Cruise Commissions TOO HIGH.
 

I have read on a travel agent's website{TW Crossroads} that cruise lines pay 18% commission on many cruises. That seems awfully high to me when you translate that % into dollars.My Alaskan cruise last year cost 5600.00 for us both.I quiver when I figure that the TA made over 1,000.00. We took the brochure to her and she talked with us and booked in less than 20 minutes.I read that brochure and researched on the net and I knew more about the cruise than the agent did. I would think that the cruise company would get more people travelling and offer better value to the consumer if they dropped their prices by 10%.

I'm a cruise agent, and I certainly don't make 18%! Also, we don't make anything on the port charges or taxes, or government fees. Port charges are up to $200 on some cruises. We also don't make high commissions on the air. And I rarely "book a cruise in 20 minutes." I certainly earn the low salary I make! Most people that call or come in don't know what they want, and I spend hours working on most bookings. I also get a lot of "shoppers" that take up my time and book nothing. I spend a lot of time advising my clients about what to expect. Sounds like you needed a more<BR>experienced cruise agent.

P.S. The cruise costs you the same, whether you book thru us or straight thru the cruiseline. They pay us to do the work (and paperwork) for them.

Linda; I'm afraid your not telling the truth. I took a holland america cruise 2 years ago and the TA enclosed the invoice in with the tickets. The commission was 18%. At the time I was mad because I felt the agent was not worth the commission I paid. Today I look for cruise discounters for the better price. Most North Americans are well educated and can read books and websites. we don't need an agent to hold our hand for 18%.I agree port taxes are too high also.

<BR>Yah, sure, 18%. And the cow just jumped over the moon.<BR><BR>Paul

I have cruised 8 times and I shop around like crazy. I have found that there are very few cruise pros. Most are just travel agents with basic knowledge willing to take your order.I prefer getting most of my information from the cruise companies website. Travel agents commission is too high for what they do especially for repeat cruisers.

believe me ive never made any 18%...just does not happen. I just had a cruise group that i had worked on since last May and believe me i earned the small commission i got and another thing....most agents are not on commission and if you are you divide at least 50% of that with the owner. Dont begrudge us what little we make<BR>Thanks

Some agencies get "override" commissions for doing a lot of business for a particular cruiseline. But I will tell you that travel agents are some of the most poorly paid people out there---we do it because it's a fun job, and for the perks. If you want to attack someone, attack one who actually makes a lot of money for little work! <BR>It's definitely not us!

18%?!! If that was the case I would have stayed in the business. I don't know any wealthy travel agents, and I certainly never saw an 18% commission. Maybe they have regional promotions for agencies or a tiered commission structures for incentives. It baffles me, my guess is whoever was entering this data on the keyboard hit the '8' button instead of the '0' in error.

Cruise companies should offer a discount to people who don't need a travel agent.AS it stands right now everyone pays up to 18%(included in the price} for a TA whether we need them or not. I know we would cruise more if the price was reduced. I find that most TAs are just order takers.

Just to let you know, you are not paying the travel agent anything!!! The cruise line is!!! I work for the largest leisure agency chain in Canada, and we sell a ton of cruises. We do not make 18% I wish. The agent themselves usually makes a small salary or an low hourly wage.<BR><BR>Also, just look at the markup on tv's, Sterio's, or anything else. This is a business after all, we don't provide a service for free. Someone has to pay us, and the cruise lines do, not you. We do not mark up anything...You will pay the same price whether you book with an agent or cruise line.... so suck it up

I understand that the agent wouldn't get 18%,but rather the agency. If you say that your wage is low I believe you. But that aside the bottom line is that a travel agency is not worth 18% to sell a cruise.18% is almost one fifth the total value. I learn more from the brochure and internet than I do from a travel agent.

If you book with a reputable and knowledgeable travel agent, like me, you will get service. You book with directly with the cruise line, you get no service. You pay the SAME price-- the cruise line pockets the commission. They certainly will not take it off the top of your cruise fare! Before all the cruise lines put their inventory on the internet, people depended on travel agents to sort through all the different cruises out there to get them the cruise they wanted at the price they wanted to pay. We mailed out brochures to the prospective client at our own expense; we called the cruise lines and sat on hold for twenty minutes and more, trying to get fare information, etc.; we spent time on the phone with the Air/Sea Dept., trying to get our customers the best flight schedule. We did a good job, and helped the cruise industry grow. Now the suppliers are trying to squeeze us out of the picture and increase their profits and you, the customer, will be the big loser when it's all over.

<BR>Don't waste your breath.<BR><BR>Just because some idiot states that travel agents get 18% commission every Joe Jerk and his brother will jump on it.<BR><BR>Nothing anyone says will change the mind of those that hate travel agents.<BR><BR>Paul

WELL WELL WELL.<BR><BR>It seems to me you if you are not using the services of your travel agent --then why did you book there? You should access your travel agent for information --thats what they are getting paid 18% for -YAAAA RIGHT --I would be the cruise queen if I made 18% on a booking.....keep dreaming....yes there are some promotions which give us a higher commission --rare, but it happens.<BR><BR>We waste a lot of time with yahoos off the street who have nothing better to do.<BR><BR>IF there is a problem --hmm....its the travel agent who takes care of it, hears the bull shit that you people have to complain about ---"ohhh the plane was delayed an hour --what compensation am I going to get, "ohh the room steward didnt turn down our beds at night, can I get a free cruise?"<BR>Ya --its the stuff like that we get paid oh so well for --I dont think so.<BR><BR>The travel agent works VERY hard as I am sure you do in your own profession, and it is pretty upsetting to find you 'bashing' us for making a living.<BR>You better step back and think about it there buddy -would you mind posting your job profession and then we can all reply on how you shouldnt be making that kind of money for doing nothing.<BR><BR>THANKS<BR>

Thank you Paul for your reply. and your support. Everyone who visits this forum knows that you are a travel agent and they respect you anyway, so it means a lot. <BR>Sandy

To reply to Laura. I didn't write the article that apparently got you enraged, but to me the travel agents need to unite with something different that what used to be. Airline not paying commissions leads to other airlines not paying commissions. Soon the cruise lines will follow suit as well as the upscale hotels. And if you want to bash my job, I work in the nuclear weapons program.

Laura-- Kuddos to YOU! You stated MY exact feelings!<BR>I am so tired of peope thinking I am making 18%-- If that were the case, why are we being forced to move to smaller offices with less help! Answer-we cannot cover our expenses on the 10% -NOT 18%-that we are making on both tours and CRUISES....We are a small Mom and Pop agency and even tho the BIG agencies like AAA and AMEX do get overides, the client STILL pays the same price for the cruise whether with us or AAA or AX......<BR>I WISH we made 18%-- then maybe I would be able to take a salary instead of pouring the money back into the business to keep the front door open!

How can you compare TVs to Cruises. There is not a 1,000 markup on a 500.00 TV.Cruises have a large dollar markup because of their high value. If it takes you one hour to sell and book a cruise it would mean you are paid a 1,000 dollars an hour. Cruise companies could lower prices if they reduced commissions that were paid to agents.

Excuse me Mr. Stubbs. Am I missing something here or do I have to go back to school? I believe you should look at the prices that are being offered by the major cruise lines and then rethink your post.<BR><BR>Paul<BR><BR><BR><BR>

Hey.<BR><BR>I'm not a travel agent and I have no particular feelings towards them. I must state, however, that attacking travel agents for "excessive" commissions is just stupid. We're living in a free economy; what do you care what a travel agent makes. <BR><BR>I have no reason to disbelieve the travel agents here who say they're not making 18% commissions. However, lets say they do make 18%. 25%. 50%. Do you think that cruise lines are just eager to pay them that money? Cruise lines are no different than consumers, so you can be sure that they're paying as little money to travel agents as they possibly can. Whoever brought this issue up - just go and open your own travel agency and make as much money as you can. Or move to Cuba - I'm sure their travel agents don't make as much money.

I am a travel agent and 18% is possible. It is on the high end. Also, especially with cheap cruises, the commissionable piece might be just 70%. So a $1,000 cruise may earn the agency less than a 100 bucks. As the price of the cruise increases the commissionable piece increases and of course the commission as a percentage of the sales increases.<BR><BR>If you feel that you know enough to buy without the advise of a travel agent, and after the second cruise most people are in that position, try some of the mega web cruise agencies. They receive large commission overrides and often book blocks of cabins at a substantial discount. The discount is in recognition of the fact that if the agency doesn't sell the cabin, the agency is stuck. They often, but not always, share the savings with the passenger.<BR><BR>The technology on the web is really amazing. You can find out which cabins are available and at what price. You can see a scanning picture of the cabins.<BR><BR>Try the cruiselines' website or Travelocity, Expedia it's amazing.<BR><BR>

<BR>Hey Vic. You're a travel agent .... in what Galaxy?<BR><BR>As the price of the cruise increases so does the commission? C'mon. Of course it does, but the percentage does not increase.<BR><BR>Paul

The noncommissionables, the biggest one port charges, are relatively fixed. On a three day cruise on Carnival because of the large noncommissionables what the agency receives as a percentage of the sales price may be 8%. On the other hand on a $10,000 Crystal cruise an agency may receive 18% because the fixed charges become insignificant.<BR><BR>I didn't think I needed to go into so much detail.<BR><BR>The commission is kind of a non issue. Shop carefully especially the mega web cruise only agencies and the mega superstores like Travelocity. More and more they are making special arrangements with the cruise lines and passing the saving on to the customer. Often the mega sells cruises for less than what small agencies pay for the cruises. So you can think of your savings as an elimination of the commission.<BR><BR>Air fares are now rational. If you want the services of an agent you pay the agent. If you want self service, you go on the web. Web fares are without fees. You get rewarded for self service. I think the cruise industry is moving in the same direction.<BR><BR>I charge an hourly rate and rebate all commissions. I shop for my customers and my experience is that in maybe 30% of the time, the price available from a mega agency is less than my price from the cruise line. Since I make no commissions, I recommend what is the cheapest.<BR><BR>Happy cruising.

Hey Paul...Vic claims to be a TA who works out of his garage. In a post a couple of weeks ago he stated that he only books travel for his relatives and close friends. Yet in the same post he said he charged these same relatives and close friends $200.00 per hour! Either he is extremely greedy or his friends and relatives are very stupid!

I don't know why you're fixated on my fee.<BR><BR>Here is a typical scenerio. A client comes to me knowing exactly what they want, the ship, sailing date, cabin class. My clients aren't stupid, the cruise must cost a few bucks for them to bring me the business. Let's say they want a Crystal Cruise that cost $10,000 for a couple. I'll look at the various alternative, my fare less any commissions, the mega's on the web. Then I look at published air, consolidators and bulk air and pick the best.<BR><BR>Let's say that the best I can find is directly through Crystal. The cruise is $10,000 less the commission, let's say it's $1,300 and I spend 3 hours on the whole thing. My customer saves $700 on the cruise, the commission $1,300 less my fee of $600. And he has the assurance that I looked carefully at various alternatives for his cruise and alternatives for air fare and choose the best ones. If it's a consolidator fare, I'll buy the consolidator fare and not mark it up. No markup because my fee has been paid, the $600. It covers everything and the customer can be certain that commissions and markups didn't influence me.<BR><BR>One other advantage that I have is that I don't do any business with the general public. So I don't devote time to people who are just looking. If I spent the kind of time that most agents must talking to lookie loos, I'd have to charge a lot more than I do. For example, if I spend 2 hours talking to lookie loos for every hour I was paid, I'd have to charge $600 per hour to average $200 per hour. That's one reason that commissions are as high as they are, agent waste a lot of time with people that don't buy, so they must take it out of the hides of those that do buy.

<BR>Vic ..... you're not a travel agent you're a broker.<BR><BR>Paul

I would feel much safer and reassured if I booked with the cruise company itself.

<BR>That is a good way to think. The only thing that you would lose is the expertise of the travel agent. The cruise line is not going to answer all your trivial questions. The cruise line wold gladly tell you if the person you are talking to is accredited. You should also check credentials.<BR><BR>Paul

I will never book thru a TA again before I do research on the web.

I have been misled by many travel agents in the past. I love cruising and find that a CRUISE ONLY agency has better qualified agents and usually a better price. I agree that the pricing of a cruise is like buying a used car.

<BR>One has to realize that employees of a travel agency are generally not that experienced. Best to confer with the owner.<BR><BR>Paul

P wood,<BR>That is an excellent idea. I like it when my clients have been on the Web and at least have an idea of what they are looking for.<BR>If they have not, I direct them to my website or that of the supplier to look and read about their options before booking.<BR>An agent's job is to take a journey of discovery with their client through questioning and feedback to choose the Perfect Vacation. If the client leaves out important details about their preferences or mistates them, they could end up with the Wrong Vacation.<BR>I specialize in what I sell, so I have seen 80% or more of the Hotels and ships I sell.

I've actually dealt with Joyce. She is pathetic. You should see her website, it's not even her's it's a single page under construction.

Wrong George, it is www.principaltravel.com<BR>It does not have cruises on it yet as only about 10% of my business is cruise.<BR>It is definately up and will eventually have a Direct Booking Engine.<BR>I is part of www.wiredflyer.com<BR>Try a Wired Flyer Agent in you area and experience the Difference.<BR> <BR><BR> .

I got your number in the Atlanta phone book. I asked for a quote on a cruise, your price was 20% higher than your competitor. You said you don't rebate any of your commission and something about your competitors being unfair.<BR><BR>

I looked at your jewel. It doesn't do anything. It's like a yellow pages ad. It just gives your phone number. Big deal.

Joyce is typical of small time agents. The industry is passing her by. As George found out, she isn't competitive in price.<BR><BR>And why even pay for a website. How can she compete with Expedia. Her's doesn't even direct book. It is a classified ad.

Sorry George, Cruise are not my primary focus. <BR>You never talked to me. I have a photogrphic memory and remember everyone I speak to.<BR>I SELL AWAY FROM CRUISE WHENEVER POSSIBLE. All inclusives are a MUCH BETTER VALUE.

Apparently you did not look at the 10,000 pictures of hotel on the site.<BR>But, how would anyone with your mentality know how to look at a Website.<BR>I have no desire for client of your calibre.<BR><BR>Vic, trust me darlin I am doing a lot better than you selling travel.<BR>