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-   -   Cruise Commissions TOO HIGH. (https://www.fodors.com/community/cruises/cruise-commissions-too-high-197755/)

Eugene Apr 16th, 2002 01:43 PM

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.

Vic Apr 16th, 2002 04:19 PM

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>

Paul Therault Apr 17th, 2002 12:41 AM

<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

Vic Apr 17th, 2002 02:20 AM

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.

xxx Apr 17th, 2002 02:55 PM

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!

Vic Apr 17th, 2002 04:01 PM

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.

Paul Therault Apr 17th, 2002 11:17 PM

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

p. martin Apr 18th, 2002 04:11 PM

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

Paul Therault Apr 19th, 2002 12:30 AM

<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

p.wood Apr 19th, 2002 10:27 AM

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

t ogilvie Apr 19th, 2002 04:29 PM

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.

Paul Therault Apr 20th, 2002 01:01 AM

<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

joyce Apr 20th, 2002 08:44 AM

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.

George Apr 20th, 2002 10:03 AM

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.

joyce Apr 20th, 2002 11:20 AM

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> .

George Apr 20th, 2002 11:35 AM

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>

George Apr 20th, 2002 11:48 AM

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.

Vic Apr 20th, 2002 12:05 PM

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.

joyce Apr 20th, 2002 08:45 PM

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.

joyce Apr 20th, 2002 08:49 PM

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>


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