Log In | Customer Support
Home Book Travel Destinations Hotels Cruises Air Travel Community Search:

Search

Search CruisePage

Book a Cruise
- CruiseServer
- Search Caribbean
- Search Alaska
- Search Europe
- 888.700.TRIP

Book Online
Cruise
Air
Hotel
Car
Cruising Area:

Departure Date:
Cruise Length:

Price Range:

Cruise Line:

Buy Stuff

Reviews
- Ship Reviews
- Dream Cruise
- Ship of the Month
- Reader Reviews
- Submit a Review
- Millennium Cruise

Community
- Photo Gallery
- Join Cruise Club
- Cruise News
- Cruise News Archive
- Cruise Views
- Cruise Jobs
- Special Needs
- Maritime Q & A
- Sea Stories

Industry
- New Ship Guide
- Former Ships
- Port Information
- Inspection Scores
- Shipyards
- Ship Cams
- Ship Tracking
- Freighter Travel
- Man Overboard List
- Potpourri

Shopping
- Shirts & Hats
- Books
- Videos

Contact Us
- Reservations
- Mail
- Feedback
- Suggest-a-Site
- About Us

Reader Sites
- PamM's Site
- Ernst's Site
- Patsy's Site
- Ben's Site
- Carlos' Site
- Chris' Site
- SRead's Site


Cruise Travel - Cruise Talk
Cruise Talk Cruise News

Welcome to Cruise Talk the Internet's most popular discussion forum dedicated to cruising. Stop by Cruise Talk anytime to post a message or find out what your fellow passengers and industry insiders are saying about a particular ship, cruise line or destination.

>>> Reader Reviews
>>> CruisePage.com Photo Gallery
>>> Join Our Cruise Club.

Latest News...Norwegian Cruise Line today celebrates the arrival of Norwegian Aqua to her new homeport of Miami, kicking off her winter season of Caribbean cruises with calls to the Company's quintessential private island, Great Stirrup Cay. Following her first season of Bermuda sailings from New York City, Norwegian Aqua will offer guests an opportunity to embark on a variety of fun-in-the-sun cruises to the Caribbean...

Latest News... Princess Cruises celebrates the maiden voyage of its newest Sphere-Class ship, Star Princess, which is departing Barcelona on an 11-day Inaugural Western Mediterranean voyage. Continuing the brand's tradition of innovation, elegance, and warm service that connects guests to the world and to one another, the gleaming Star Princess now sails as the 17th jewel of the Princess fleet...

Latest News...Royal Caribbean is introducing the family time of a lifetime on Legend of the Seas* with more adventure than ever before. The boldest vacation to visit the world's top destinations in Europe and the Southern Caribbean, Legend will deliver a lineup of unrivaled experiences, including thrills and chill, the most dining at sea with 28 options, all-new nightlife and entertainment,..

More Cruise News...


Post New Topic  Post A Reply
my profile | register | search | faq | forum home
  next oldest topic   next newest topic
» Cruise Talk   » Cruise Lines   » how to cut cruise costs

UBBFriend: Email this page to someone!    
Author Topic: how to cut cruise costs
greybeard
First Class Passenger
Member # 5284

posted 03-24-2006 11:06 AM      Profile for greybeard     Send New Private Message      Edit/Delete Post  Reply With Quote 
From travelweekly.com . . . .


By Johanna Jainchill

According to recommendations by Goldman Sachs analysts, Carnival Corp. and Royal Caribbean Cruises should lower the average travel agent commission to 10% and redirect bookings from travel agents to their own Web sites in an effort to save money.

Assuming 90% of bookings come from travel agents who charge 14% commission, the report published earlier this month said, Carnival could save $330 million and Royal Caribbean $140 million, leading to a $0.38 and $0.59 per share impact on their bottoms lines, respectively.

The report said that the two largest cruise lines have “overlooked” opportunities like this to cut expenses in the current high fuel-cost environment.

[ 03-24-2006: Message edited by: greybeard ]


Posts: 587 | From: London | Registered: Dec 2004  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 03-24-2006 04:04 PM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
But don't Tracel Agents reach customers that a web site can't.

I recall that few cruisetalkers actually book cruises on-line.


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 03-24-2006 04:27 PM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
A cruise vacation isn't always a simple commodity like an airline seat--many customers need and prefer to deal with an agent to answer questions, make various arrangements, etc. Of course many a web-savvy cruise veteran can book directly with the cruise lines, but perhaps not get the discount an agent would offer if it's on a cruise line that still permits rebating.

The day will come when cruise lines cut back their commissions to travel agents, like the airlines did, but at this point in time, travel agencies are the major distribution point for the cruise lines' products. The lines are willing pay commissions to agencies who will handle all the customer service related details involved in a cruise sale.

If cruise lines wanted all the business to be direct, they would have to invest millions in additional service reps and in-house agents to take the clients' hand and help them with the myriad details--so far the lines have been reluctant to go that far.

And don't anyone think that if the cruise lines can save money by cutting out commissions to agents, that it will lower the cost of a cruise! They aren't going to take away from their distribution source and give it to the customers!

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
desirod7
First Class Passenger
Member # 1626

posted 03-24-2006 05:07 PM      Profile for desirod7     Send New Private Message      Edit/Delete Post  Reply With Quote 
My bookings are direct or through a discount house, even book through TravelPage.

I need a travel agent the most when booking last minute, or have very specific requirements. A good cruise agent such as Rich, Darrell, and Russ know the ships, lines, where to place clients for cabin location, itinerary, cruise format, sea days vs. port days.

Reniassance went under mostly due to not dealing with travel agents.

quote:
Originally posted by Linerrich:
A cruise vacation isn't always a simple commodity like an airline seat--many customers need and prefer to deal with an agent to answer questions, make various arrangements, etc. Of course many a web-savvy cruise veteran can book directly with the cruise lines, but perhaps not get the discount an agent would offer if it's on a cruise line that still permits rebating.

The day will come when cruise lines cut back their commissions to travel agents, like the airlines did, but at this point in time, travel agencies are the major distribution point for the cruise lines' products. The lines are willing pay commissions to agencies who will handle all the customer service related details involved in a cruise sale.

If cruise lines wanted all the business to be direct, they would have to invest millions in additional service reps and in-house agents to take the clients' hand and help them with the myriad details--so far the lines have been reluctant to go that far.

And don't anyone think that if the cruise lines can save money by cutting out commissions to agents, that it will lower the cost of a cruise! They aren't going to take away from their distribution source and give it to the customers!

Rich



Posts: 5727 | From: Philadelphia, Pa [home of the SS United States] | Registered: Oct 2000  |  IP: Logged
Green
First Class Passenger
Member # 171

posted 03-24-2006 05:33 PM      Profile for Green     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by greybeard:
From travelweekly.com . . . .


By Johanna Jainchill
According to recommendations by Goldman Sachs analysts, Carnival Corp. and Royal Caribbean Cruises should lower the average travel agent commission to 10% and redirect bookings from travel agents to their own Web sites in an effort to save money.
Assuming 90% of bookings come from travel agents who charge 14% commission, the report published earlier this month said, Carnival could save $330 million and Royal Caribbean $140 million, leading to a $0.38 and $0.59 per share impact on their bottoms lines, respectively.

The report said that the two largest cruise lines have “overlooked” opportunities like this to cut expenses in the current high fuel-cost environment.

[ 03-24-2006: Message edited by: greybeard ]


14% commission on a cruise booking? I'm pretty sure every Agency does not earn that much on a cruise booking unless of course the sale is for a large group. Here in Canada the commission is usually 10%. The traveller is not charged a booking fee on cruises. Keep in mind too that the traveler's bottom line includes Port Taxes, etc.etc. non of which are commissionable.

We're considering a Christmas/New Year 14 day cruise - here's the quote for an outside cabin - Caribbean itinerary

  • Cruise CAD$6,653.70
    Early bkg. disc. $1,612.00 = $5,041.07
    Taxes/Fees 155.06
    Air fare x Toronto 609.00
    Transfer w/bags to ship 29.52
    Port Taxes (no discount) 405.90
    Total-per person -$5,834.65
No insurance included and we wouldn't think of travelling without full coverage. Haven't priced that yet because our chances of actually making the trip are slim.

Point here is that an additional 14% would be totally out of line - in fact any 'booking fee' would be out of line! We could of course do our own air but it's doubtful that we'd save much and would have the hassle of getting our own transfers.


Posts: 2913 | From: Markham, Ontario, Canada | Registered: Jul 99  |  IP: Logged
LeBarryboat
First Class Passenger
Member # 5308

posted 03-24-2006 07:06 PM      Profile for LeBarryboat   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
I've been selling cruises for over 20 years and have found that the overall consumer prefers to work with an agent that can show them options...when you go directly to the cruise line, you are not necessarily going to get ALL your options, because that cruise line is bias towards their product of course. It's also important to choose an agent that knows the ships and the industry well...so avoid going through ABC travel and go to a Cruise-only agency, because that's all they do. I have developed relationships over the years with key people at a select group of prefered cruise lines, who are more than happy to find the absolute best rates for me to pass down to my customers. Find an agency that has group space they are trying to dump....some agencies block a larger number fo staterooms and then can offer them at a bargain price. There are a number of tricks of the trade so to speak that the consumer won't benefit from if they go direct to the cruise line...that a good cruise agent will be able to tap into. As an Elite Cruise Counselor (CLIA), I have been able to offer my customers great value....going direct to the cruise lines can in many cases cost you more money. I think the cruise lines are smart enough to not tick off their travel agent partners...sure they may salavate over that seemingly lost revenue, but in the long-run it is an asset.
Posts: 1955 | From: Minnesota | Registered: Jan 2005  |  IP: Logged
nycruiser
First Class Passenger
Member # 960

posted 03-26-2006 11:30 PM      Profile for nycruiser   Email nycruiser   Send New Private Message      Edit/Delete Post  Reply With Quote 
Commissions on cruises range from 10-14%. It depends on the volume the agency gives a particular line. I know the office I work for we get 14%on NCL, 10% on HAL, 12% on Carnival. We did more sales with NCL from last year to now so we make more with them. I am with a small agency so agents with a big company may make 14% on all lines.

I am very sure that the cruise lines will lower this percentage as we go on. I say in 10 years we will see the 1st commission cuts. This will happen until they pay 0%. I beleive that the lines have a plan to make consumers comfortable with booking online or via phone. They already have begun doing that. They have "vacation specialists" to assist those who may need help. What I find interesting is even their commericials on TV tout using their website 1st, 2nd they put their phone number and then it says "or see your travel agent". The TA has become the last option. Almost like your last resort.

By not having the TA in the picture saves them money on commission and it saves money becouse new cruisers, especially, will run on brand name recognition. When people visit an agency MOST agents like myslef (good little old me!) give our honest opinions about cruise lines, resorts even airlines (these opinions are based on personal experience, client feedback, professional reviews, etc). The companies really dispies this!!!!
Thats one of the reasons why the airlines stopped paying commissions. The airlines say that they can't afford to pay travel agents a 5% commission (with a $20 per ticket cap) and so most major carriers have stopped paying commissions entirely. But, if the airline sells the ticket to the traveler themselves via their 800 number they have probably incurred $20 in costs (the cost of the phone call, the cost of the employee, related costs for supervisors, etc,) by selling it to the traveler directly. Even more strangely, although they 'can't afford' to pay up to $20 to a travel agent, they can offer as much as a 10% discount off all their fares if you buy from their website. It doesn't make sense!!

The reality is that there is a major cost to the airlines which travel agents cause them - a cost they are desperate to hide and eliminate. What is that cost? It is the cost of losing revenue every time a travel agent advises a client how to save money on an airfare (for example, by changing routing or flight times), and/or the lost revenue every time a travel agent advises a client about a more convenient schedule or a lower fare on a competing airline. With the difference in two fares being potentially the difference between perhaps $300 and $1500, good advice from a travel agent can cost the airline (and save the traveler!) a huge amount more than just $20.

When was the last time you called an airline to book a flight, and the reservations agent at the other end said "Oh sir I think I should volunteer the information that their is a flight on one of our competitors that leaves at the same time, but flies nonstop instead of requiring a change in plane, and with a fare $250 cheaper than our fare.'" Theywould never do this instead, if you ask about other airlines, they'll say "Im sorry but our computer system doesn't have that information" That, in a nutshell, is the difference between booking direct with an airline or with a travel agency.

They want to deprive their customers of access to the best comparison information and expert advice that could otherwise save you huge amounts of time, trouble, and money.

The cruise lines are down this same path! I know a cruise is not an airline seat however the cruise line's are using the airlines' business model. The big guys like Carnival, Royal Caribbean, NCL will rely on the comusmers ability to choose a brand and recognize a brand from their novelties they provide.

Bottom line is I think agents will exists but it will be for a traveler who wants the planing and expertise and they will be willing to pay hefty services fees. And the cruise lines will be able to become autonomis.


Posts: 665 | From: Westchester County, NY | Registered: Dec 1999  |  IP: Logged
Jekyll
First Class Passenger
Member # 1878

posted 03-27-2006 11:05 AM      Profile for Jekyll   Email Jekyll   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Green:

14% commission on a cruise booking? I'm pretty sure every Agency does not earn that much on a cruise booking unless of course the sale is for a large group. Here in Canada the commission is usually 10%.


Actually - for the cruise portion of a booking it is NOT uncommon for a Canadian agency to receive 15% commission or more if the account belongs to one of the major chains i.e. Carlson, Cruisehsipcenters, Cruise Holidays, Sears, etc. If I were to tell any agency they were were at 10% commission they'd figure out a way to book at either a higher commission or go tell me to jump in a lake.


Posts: 1524 | From: Nowhere | Registered: Mar 2001  |  IP: Logged
sunviking82
First Class Passenger
Member # 4930

posted 03-27-2006 12:02 PM      Profile for sunviking82     Send New Private Message      Edit/Delete Post  Reply With Quote 
I have booked several cruises successfully through Orbitz and Travelocity including air and hotels without a problem. Takes just a few mintues and is so easy. Also Northwest now books cruises, air, hotel and rental cars through their website as do some other airlines. Also, booking via the cruise lines on line is easy too. The last two travel agents I have used, never called back and I just gave up. Travel agents your days are numbered.
Posts: 383 | From: Minneapolis Minnesota , USA | Registered: Aug 2004  |  IP: Logged
Mariposa
First Class Passenger
Member # 4174

posted 03-27-2006 02:55 PM      Profile for Mariposa     Send New Private Message      Edit/Delete Post  Reply With Quote 
As someone who frequently books my own cruise directly from the cruise line website, I wish the industry would consider a bit of a "commission" for those of us doing this. It would be GREAT to get 5% off (commission) when I book with the line directly - and they would still increase their bottom line.

Posts: 101 | From: Vermont, USA | Registered: Sep 2003  |  IP: Logged
sunviking82
First Class Passenger
Member # 4930

posted 03-27-2006 03:05 PM      Profile for sunviking82     Send New Private Message      Edit/Delete Post  Reply With Quote 
I like it, even if they gave us 5% shipboard credit!
Posts: 383 | From: Minneapolis Minnesota , USA | Registered: Aug 2004  |  IP: Logged
billee
First Class Passenger
Member # 1133

posted 03-27-2006 04:38 PM      Profile for billee   Author's Homepage   Email billee   Send New Private Message      Edit/Delete Post  Reply With Quote 
The cruise lines have already cut our commissions when they added the "NCF" (non commissionable fare) to the cruise fare.
Posts: 159 | From: Baltimore, MD USA | Registered: Mar 2000  |  IP: Logged
LeBarryboat
First Class Passenger
Member # 5308

posted 03-27-2006 06:55 PM      Profile for LeBarryboat   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by billee:
The cruise lines have already cut our commissions when they added the "NCF" (non commissionable fare) to the cruise fare.
This is actually the port fees which cannot be commissionable to a travel agent, that's why it is called that.

SunViking you're probably right....but many people aren't as savy as you are on the internet. What about those who still do not have online access for one odd reason or another?


Posts: 1955 | From: Minnesota | Registered: Jan 2005  |  IP: Logged
Joe1690
First Class Passenger
Member # 4889

posted 03-27-2006 07:28 PM      Profile for Joe1690     Send New Private Message      Edit/Delete Post  Reply With Quote 
LeBarryBoat, actually the non-commissionable fare is not the port taxes as you state. Rather the cruise fare is broken down into 3 categories base cruise fare, non commissionable fare, and then port taxes. The non commissionable fare is whatever the cruiselines decide they want to include in it and some have supposedly added their fuel costs to this section. Just as it is stated this non commissionable fare is not able to earn a comission by travel agents and often runs in the realm of $200-$400 depending on the sailing and then you add your government fees and taxes (aka port taxes) of around $30-$100 depending on location, destination, etc.
Posts: 87 | From: King of Prussia, PA | Registered: Jul 2004  |  IP: Logged
greybeard
First Class Passenger
Member # 5284

posted 03-29-2006 10:11 AM      Profile for greybeard     Send New Private Message      Edit/Delete Post  Reply With Quote 
Response reported by travelmole.com:

Cut cruise commissions? No way


A Goldman Sachs report suggesting cruise companies could save millions by cutting agent commissions has been rejected by the two largest cruise lines.

In addition, the American Society of Travel Agents (ASTA) has refuted the report's logic.

"The recent statement by Goldman Sachs shows a complete lack of understanding of the travel agency and cruise industries and travel agents' relationship with the consumer," said ASTA CEO and President Kathryn W. Sudeikis.

She said, for example, the report did not attempt to analyze cruise lines' competitive position against land-based tours.

"Nor did it attempt to analyze the impact of a shift that might occur should a drastic commission change happen," she added.

She quoted figures showing that the cruise industry grew by 8.2% annually from 1980 to 2004. More than 88% of Royal Caribbean Cruises and Carnival Corp's berths are sold by travel agents.

Said Ms Sudeikis:

"Cruise lines may not be ready to risk potential movement to land-based competitors and need a highly skilled and experienced sales force to create demand for cruising over land vacations."

Carnival and Royal, the world's two largest cruise lines, both said they had no intention on following the recommendation by Goldman Sachs to reduce travel agents commissions.

The report, which stirred a buzz in the industry, assumes that agents book 90 percent of cruises for an average 14% commission. Reducing that to 10% would save Carnival $330 million and Royal $140 million.

"We have no plans to do this," said Michael Sheehan, director of corporate communications for Royal Caribbean Cruises.

Report by David Wilkening


Posts: 587 | From: London | Registered: Dec 2004  |  IP: Logged
Matts
First Class Passenger
Member # 4120

posted 03-29-2006 12:54 PM      Profile for Matts     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Mariposa:
As someone who frequently books my own cruise directly from the cruise line website, I wish the industry would consider a bit of a "commission" for those of us doing this. It would be GREAT to get 5% off (commission) when I book with the line directly - and they would still increase their bottom line.


They do in some cases. I believe Cunard have a 5% web discount. That said I expect it is still possible to save through a travel agent.
Personally I think Cruise Lines need to raise their game with their websites, to the standard of airlines. They bank on a lot of repeat passengers and a lot of repeaters may not need the services of an experienced travel agent - at least not if they are repeating a line or ship they already have used.
Cruise agents in the UK have websites for finding prices which are IMHO often a lot worse than the lines themselves and one of the things that puts me off agents is the need to fill in an 'enquiry form' just to get a simple cruise only price.

Posts: 829 | From: London, United Kingdom | Registered: Sep 2003  |  IP: Logged

All times are ET (US)  

Post New Topic  Post A Reply Close Topic    Move Topic    Delete Topic next oldest topic   next newest topic
Hop To:

Contact Us | CruisePage

Infopop Corporation
Ultimate Bulletin BoardTM 6.1.0.3

VACATION & CRUISE SPECIALS
Check out these great deals from CruisePage.com

Royal Caribbean - Bahamas Getaway from $129 per person
Description: Experience the beautiful ports of Nassau and Royal Caribbean's private island - CocoCay on a 3-night Weekend Getaway to the Bahamas. Absorb everything island life has to offer as you snorkel with the stingrays, parasail above the serene blue waters and walk the endless white sand beaches. From Miami.
Carnival - 4-Day Bahamas from $229 per person
Description: Enjoy a wonderful 3 Day cruise to the fun-loving playground of Nassau, Bahamas. Discover Nassau, the capital city as well as the cultural, commercial and financial heart of the Bahamas. Meet the Atlantic Southern Stingrays, the guardians of Blackbeard's treasure.
NCL - Bermuda - 7 Day from $499 per person
Description: What a charming little chain of islands. Walk on pink sand beaches. Swim and snorkel in turquoise seas. Take in the historical sights. They're stoically British and very quaint. Or explore the coral reefs. You can get to them by boat or propelled by fins. You pick. Freestyle Cruising doesn't tell you where to go or what to do. Sure, you can plan ahead, or decide once onboard. After all, it's your vacation. There are no deadlines or must do's.
Holland America - Eastern Caribbean from From $599 per person
Description: White sand, black sand, talcum soft or shell strewn, the beaches of the Eastern Caribbean invite you to swim, snorkel or simply relax. For shoppers, there's duty-free St. Thomas, the Straw Market in Nassau, French perfume and Dutch chocolates on St. Maarten. For history buffs, the fascinating fusion of Caribbean, Latin and European cultures. For everyone, a day spent on HAL's award winning private island Half Moon Cay.
Celebrity - 7-Night Western Mediterranean from $549 per person
Description: For centuries people have traveled to Europe to see magnificent ruins, art treasures and natural wonders. And the best way to do so is by cruise ship. Think of it - you pack and unpack only once. No wasted time searching for hotels and negotiating train stations. Instead, you arrive at romantic ports of call relaxed, refreshed and ready to take on the world.
Holland America - Alaska from From $499 per person
Description: Sail between Vancouver and Seward, departing Sundays on the ms Statendam or ms Volendam and enjoy towering mountains, actively calving glaciers and pristine wildlife habitat. Glacier Bay and College Fjord offer two completely different glacier-viewing experiences.

| Home | About Us | Suggest-a-Site | Feedback | Contact Us | Privacy |
This page, and all contents, are � 1995-2021 by Interactive Travel Guides, Inc. and/or its suppliers. All rights reserved.
TravelPage.com is a trademark of Interactive Travel Guides, Inc.
Powered by