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» Cruise Talk   » Cruise Lines   » Carnival UK want Agents' Support

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Author Topic: Carnival UK want Agents' Support
PamM
First Class Passenger
Member # 2127

posted 12-13-2011 07:49 AM      Profile for PamM   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
"Carnival UK chief executive David Dingle has asked for agents' support in 2012, despite the company's decision to cut commission to 5% earlier this year."
rest of report at Travelmole.

I am not sure considering the furor caused at the time of the reduction there is going to be a lot of 'sympathy'.

Back in February, he said:- "David Dingle told TTG that the move to 5% was a "brave and radical" attempt to curb discount wars between agents, which he said devalued the product.

"This is a radical move, and it could be industry changing," he said. "I would be surprised if we don't see others following suit..."

Have any others followed suit?

Pam


Posts: 12176 | From: Cambridge, UK | Registered: Jun 2001  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 12-13-2011 08:29 AM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
Not in the US, but the cruise lines banned up-front discounting and price-war advertising here several years ago (not to say that back-end rebating does not take place.) Apparently the practice was so rampant in the UK, with agencies knocking each other out to give away the product and not make any money, that CCL decided to try to end it.

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
Tom Burke
First Class Passenger
Member # 5238

posted 12-13-2011 09:14 AM      Profile for Tom Burke   Author's Homepage   Email Tom Burke   Send New Private Message      Edit/Delete Post  Reply With Quote 
The thing I picked up on immediately when I read the article was this comment:
quote:
...we have now helped to assure agents that their price is as good as any on the high street

I don't use High Street travel agents; never have, in fact. I buy all my travel on-line. What I have decided to do in future is to buy cruises direct from the cruise line. It'll all be the same price, and I'm cutting out a middle-man and thus removing some possible cause of confusion and error. I was prepared to accept that in the past because I got a lower price from the agents, but that isn't the case any more.

I don't know how many cruises are sold, in the UK, by face-to-face high street TAs. Pretty much by definition anyone posting at this or any other cruise forum is very likely to use the internet, and the story I'm hearing all the time on the internet is that many others are thinking the way I am. I think the on-line TAs are definitely hurting.

Which may be Carnival's aim, of course....


Posts: 1469 | From: Sheffield, UK | Registered: Dec 2004  |  IP: Logged
PamM
First Class Passenger
Member # 2127

posted 12-13-2011 11:17 AM      Profile for PamM   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
I haven't bought anything in the High Street for as long as I can remember, but I know people who do [not cruises], as even though they do use the net, they prefer so sit in front of a face.

Yes, it used to be the case that online agents offered much cheaper rates than booking direct with a cruise line, but this is usually no longer the case. Cruise lines obviously want you to book direct as they then get that extra they would have paid out to the agents. It is not possible either to book all lines direct yet. My recent and upcoming cruises have been 50/50 direct/online agent.

What I have noticed is the branching out by agencies. They are putting together their own packages incorporating cruises, land tours, air, hotels all in one. Very convenient for people without the time to do all the research and tie everything together themselves. I am sure this is the only way online agencies are going to keep in business along with good customer service to ensure customers return regardless of the hope of anything cheaper. I don't think they are going to specifically support one line over another doing this though, especially one who offers less commission.

Pam


Posts: 12176 | From: Cambridge, UK | Registered: Jun 2001  |  IP: Logged
Kevin Griffin, London
First Class Passenger
Member # 6010

posted 12-13-2011 04:18 PM      Profile for Kevin Griffin, London   Author's Homepage   Email Kevin Griffin, London   Send New Private Message      Edit/Delete Post  Reply With Quote 
They have to be joking. We have removed P&O and Princess from our web site and only keep Cunard for old times' sake. It is not worth working for 5%.

And no Pam, no one else has followed suit - in fact some have gone the other way.

[ 12-13-2011: Message edited by: Kevin Griffin, London ]


Posts: 148 | From: London, England | Registered: Oct 2005  |  IP: Logged
eroller
First Class Passenger
Member # 1649

posted 12-13-2011 08:05 PM      Profile for eroller     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Kevin Griffin, London:
They have to be joking. We have removed P&O and Princess from our web site and only keep Cunard for old times' sake. It is not worth working for 5%.

And no Pam, no one else has followed suit - in fact some have gone the other way.

[ 12-13-2011: Message edited by: Kevin Griffin, London ]


Sounds like a raw deal Kevin and I would do the same as you. Of course it must make it difficult when Carnival controls over 50% of the cruise market. One reason I was very much opposed to Carnival taking over Princess. Too much of a monopoly. It's not good for consumers or retailers, only Carnival executives and stockholders.

I would like to see any Carnival Corp brand try slashing commissions in the US. It would be suicide right now. All cruise lines have slowly chipped away at distribution costs (ie: commissions) by way of NCF's (non-commissionable fares) but no one has been daring enough to bluntly cut the base commission percentage. This is not to say it won't happen at some point, but not right now.

Renaissance Cruises tried to cut out travel agents and we see where it landed them. It was a foolish move at the time, but in 5-10 years from now who knows? The airlines did it successfully and I bet 30 years ago no travel agent would have imagined it.

Ernie

[ 12-13-2011: Message edited by: eroller ]


Posts: 7046 | From: Miami, Florida USA | Registered: Oct 2000  |  IP: Logged
lasuvidaboy
First Class Passenger
Member # 4527

posted 12-14-2011 12:06 PM      Profile for lasuvidaboy     Send New Private Message      Edit/Delete Post  Reply With Quote 
It seems that regardless of the profession, commissions are often seen as fair game. Imagine going to your doctor or dentist and after being quoted an amount, you tell them you will pay a lower percentage of the amount!
Posts: 7654 | From: Hollywood Hills/L.A. | Registered: Mar 2004  |  IP: Logged
eroller
First Class Passenger
Member # 1649

posted 12-14-2011 07:57 PM      Profile for eroller     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by lasuvidaboy:
Imagine going to your doctor or dentist and after being quoted an amount, you tell them you will pay a lower percentage of the amount!

I would be willing to bet there are some people that try to negotiate even at the dentist or doctor! Some people really get off on it. I'm not one of them. I've never been a good bargainer. Just tell me the price, make if fair, and I will pay. I guess this is why I've never done well in Mexico! LOL

Ernie


Posts: 7046 | From: Miami, Florida USA | Registered: Oct 2000  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 12-15-2011 07:54 AM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by lasuvidaboy:
It seems that regardless of the profession, commissions are often seen as fair game. Imagine going to your doctor or dentist and after being quoted an amount, you tell them you will pay a lower percentage of the amount!

And that is an analogy I have used with certain clients who think the price of a cruise is negotiable: folks, this isn't "Let's Make a Deal!" Especially since the cruise lines set the gross fare which much be paid.

I also compare this to purchasing an Apple or a Sony product--typically the price is set by the manufacturer, and that is what you pay. Imagine bargaining for an I-Phone or an I-Pad at the Apple Store!

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged

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