Thread: Freebies Question

Here's one for the travel agents (and anyone else who has some experience).

Should loyal customers expect some cabin gift from the agent or agency?

For the past 4 years I have used a "discount" internet cruise service to book cruises for myself and those traveling with me. The gross prices have been in the 7-10K range annually. Is there some rule of thumb. Two years ago I booked (repeat) for my wife and myself and got nothing. The friends I booked for (never used the service before) found wine gifts arranged for them. When I complained about this last summer, we found ship photo and wine arranged for us. Nice-- but I don't think that being pushy is a lot of fun. I've already booked 2 cruises within the next 6 months (about 14K) with the same agency (and agent) and I'm taking a wait and see approach on how we are treated. Am I crude in thinking this way?

Is there some rule of thumb that agents use? Is the margin so small on such bookings as to not warrant any expectation?

I am not a TA but have always used a TA, never booked direct. I have sailed since the 80's and there is no rule of thumb that I have experienced!! The norm has been a bottle of wine in a cabin!! The one I have now does more, but it is the pricing and always being there when needed has made the difference for me!!

There is a general guide that agents are supposed to use...it is approximately 10% of the commission...

Some do more and some do less, and of course some do nothing at all.

I really try to give to all my clients...especially my repeat clients...I can't list everything...but, I have been known to give, wine (if they want it), tote bags (especially to groups) and group tshirts! Some agents that do groups don't do as much, and group members purchase their own tshirts... it is just something I like to do! I also send things in the mail...I love giving out goodies....I think most of my clients appreciate it...I do get requests for extra totes too!!

But, I am also a small agency, not a big corporation, I own my own agency, and I make my own rules!

Dolores

In 20 cruises with a discount TA only got wine twice. When we moved to where we live now and our TA are freinds, we get great pricing and they do everything they can to make our cruises a good one. But no gifts, which we wouldn't expect either from them. Although they do bring me chocolate from their cruises.

I've been involved in travel for over 20 years and have owned my own company for the last 7 years and I've never heard of any "general rule of thumb" or "general guideline" an agent should use, especially not a 10% guideline.

It really depends on their personal business practices and what they like to do for their repeat clients.

Your first sentence basically said it all. You said you use, "a discount internet cruise service."

Discount online companies deal in quantity and not quality. They are more interested in making as many sales as possible and not necessarily in providing good customer service.

Couple of things you really need to understand so you can appreciate agents and the work they do. When agents first start, they make a relatively small commission on the cruise you purchase. This commission is a percentage of the cruise fare itself. Keep in mind that the gross amount you pay has several parts to it; the cruise fare, port fees, taxes, and fuel supplement. As I said, the commission is only paid based on the cruise fare. So, I'll give an example; let's say that you paid $3000 for a balcony cabin. Of that, only $2480 is the actual cruise price on which commission is paid. A fairly new agent will only make $248 on this booking, less all their normal expenses associated with conducting business.

But let's just say that you purchased an inside cabin on a 3- or 4-night cruise and the actual commission paid to the agent was only $45 - would you expect a $4.50 gift? So you can see that the 10% guideline is not necessarily appropriate.

For a first-time client, it's not unusual for no gift to be provided. However, if this was a repeat client, then a small 'thank-you' will usually be appropriate. But the amount or type of gift is entirely up to the individual agent and may differ from booking to booking.

Bottom line is that contrary to what people may think, agents don't make a great deal of money while having the usual business expenses. They concentrate on providing good customer service and work hard for their clients while trying to get them the best rates possible. You don't get service like that dealing with an online agency.

It always amazes me that people pay for professional services from accountants, lawyers, dentists, auto mechanics, dry cleaners, etc. and never expect a gift in return. But when it comes to a travel agent, people will often base their decision to book with them or not on whether they get a gift. All of these professions provide personal services in some form or another - an agent is no exception, yet they make less money than the others and are the only ones expected to give gifts. I don't get it. Good personal service should be appreciated based on the effort and quality of the service provided and not whether they give a gift or not.

Sorry, didn't mean to get on my soapbox. But to answer your question, you should not expect a gift from your agent for repeat business, but if you get one, you should be very appreciative since it comes out of their pocket. And if your friends got something, then you should definitely expect to get something - no question about that.

But as I said earlier, there is no general guideline for any of this since it really depends on how many bookings the client has made, how much money they've spent, how much commission is being paid, etc, etc.

Hope this helps explain a few things.

Pete

Pete, I have read in a few different travel publications about the "general rule" for agents and gift giving...the most recent being written by Anita Paglissi (cannot remember the correct spelling)...I just checked... the article was not written by Anita, but by John Hawks...but Anita did add some comments to the article...the title is "The 10 percent rule"....

Personally, I agree with you in not following any rule of thumb... esp...when someone is booking an inside cabin for a 3 day cruise with barely any commission, lol...but obviously if a commission is only $45, the gift won't be worth $45, lol.

I do agree with you that other professions don't give anything...lol...but bills! But, in this business, many clients expect something.

In my business model, I don't follow any rule of thumb, that is for sure... and customer service is first and foremost, and always will be. I used to be an independent agent for different host companies...but that is not what I started my business to do...hence why I am my own agency...there is a difference.
But, there are agents that work for big travel companies that cannot give gifts...etc. If someone wants gifts, I would expect they would want to be sure that the service is top notch first...I would hope anyway.

To each his/her own.... we all have different business models...should a client expect a gift? Maybe! Why not?

One thing people should remember that customer service really is the most important. Some of the discount agencies may offer a better price than I do, but cannot beat my customer service...IMHO...
If people want great customer service and gifts, then they need to research and use travel agents that they have received good referrals about.

Originally Posted by becktours

Dolores,

I couldn't agree more! I, like you, also worked for a host agency, but went on my own! What a difference! It was by far the best move ever! And I also read that article about the 10% rule.

Customer service is the most important part of my business model. The other day, I had several conversations with a potential client. He kept telling me how other agencies were offering him more than I could. I told him that in all honesty, I could not afford to slash my commission that far and it should be my service that wins him over. He appreciated my honesty and integrity and ended up booking a cabin and referring his brother and friend as well. I ended up selling three cabins because my customer service was more important to him than all of the gifts.

Bottom line, I do pride myself in great customer service. I always try to give something to my clients.

So I'm slightly confused on your reply. I see you sold three cabins and are giving excellent customer service. But are you or are you not doing a "gift" thing?
You mentioned reading the 10% rule, but are you in agreement or not?

Personally I think it is between the client and the TA!! Not give anything do give something!! But no one knows till you book, word of mouth, or ask the TA if they do!! All Ta's are different, at least all mine were and I moved on for lots of different reasons.

Actually, the article you're referring to was written by John Hawks but he took the information from the book by Anita Pagliasso. I read both of them. Although she calls it a 'rule', it's more of a suggestion that you should consider. And, as I said, this is not a general rule of thumb or guideline, this is just one person's suggestion and needs to be put into context with other things the agent provides.

And I reitterate what I said earlier: "It always amazes me that people pay for professional services from accountants, lawyers, dentists, auto mechanics, dry cleaners, etc. and never expect a gift in return. But when it comes to a travel agent, people will often base their decision to book with them or not on whether they get a gift. All of these professions provide personal services in some form or another - an agent is no exception, yet they make less money than the others and are the only ones expected to give gifts. I don't get it. Good personal service should be appreciated based on the effort and quality of the service provided and not whether they give a gift or not."

Why does everyone assume that an agent should give a free gift but not expect it from others who make alot more money? If you've ever had dealings with a lawyer, they charge huge fees. Do you expect a gift from them in return? My lawyer drives a BMW, I drive a Chevy Prizm! Yet I'm the one who's expected to give a gift?

People go to the same auto mechanic everytime they need repair work done because they trust that person to give them good service and not to rip them off. You don't expect any gifts from them for your business. The same is true with anyone that provides a personal service.

For the most part, agents don't make a great deal of money. They spend alot of hours with a client and sometimes get nothing in return because they client will book online or cancel their cruise.

Don't get me wrong, I, too, provide gifts to my repeat clients and have done all sorts of things to show my appreciation. I also provide an upgraded document package and other items for first time clients. But I agree with what Sue said; what is provided is between the TA and the client.

I just think it's unfair that some people feel it's a necessity or a requirement for the travel industry. Service should be first and foremost, along with providing the best prices. Whether or not any gift is provided is gravy, but should have no bearing on the decision to book with a particular agent or company.

Pete

Originally Posted by Cruise Planner

Actually, the article you're referring to was written by John Hawks but he took the information from the book by Anita Pagliasso. I read both of them. Although she calls it a 'rule', it's more of a suggestion that you should consider. And, as I said, this is not a general rule of thumb or guideline, this is just one person's suggestion and needs to be put into context with other things the agent provides.

I agree with you Pete...and as I stated, I don't follow any rules...lol...and I did state the article was by John Hawks...it is more of a guide, yes... as some new agents... don't know what and if they should give anything...

And I reitterate what I said earlier: "It always amazes me that people pay for professional services from accountants, lawyers, dentists, auto mechanics, dry cleaners, etc. and never expect a gift in return. But when it comes to a travel agent, people will often base their decision to book with them or not on whether they get a gift. All of these professions provide personal services in some form or another - an agent is no exception, yet they make less money than the others and are the only ones expected to give gifts. I don't get it. Good personal service should be appreciated based on the effort and quality of the service provided and not whether they give a gift or not."

This is true...but people do expect gifts from agents...should they? I say maybe because the agents I used before I started my own business, used to ...so in the "old fashioned" way... I think it is a nice thing to do.

Why does everyone assume that an agent should give a free gift but not expect it from others who make alot more money? If you've ever had dealings with a lawyer, they charge huge fees. Do you expect a gift from them in return? My lawyer drives a BMW, I drive a Chevy Prizm! Yet I'm the one who's expected to give a gift?


Good point... I drive a Hyundai Tucson...don't get me wrong, I do love the car/mini suv, but I would love a BMW or similar too. I don't see it happening...
People go to the same auto mechanic everytime they need repair work done because they trust that person to give them good service and not to rip them off. You don't expect any gifts from them for your business. The same is true with anyone that provides a personal service.

Personal service is first and foremost...

For the most part, agents don't make a great deal of money. They spend alot of hours with a client and sometimes get nothing in return because they client will book online or cancel their cruise.

It is frustrating when people cancel, especially clients that were higher maintenance... It is understandable why some agents have a cancellation fee... I have some large groups that I implemented one on... I typically don't do this...

Don't get me wrong, I, too, provide gifts to my repeat clients and have done all sorts of things to show my appreciation. I also provide an upgraded document package and other items for first time clients. But I agree with what Sue said; what is provided is between the TA and the client.

Every client for the most part gets something...some more, some less...

I just think it's unfair that some people feel it's a necessity or a requirement for the travel industry. Service should be first and foremost, along with providing the best prices. Whether or not any gift is provided is gravy, but should have no bearing on the decision to book with a particular agent or company.

True, but people do look for the freebies....there are times when a price cannot be matched... due to group space, etc... but my goal is to provide service to keep them coming back!



Pete

I have said in the past... Pricing shouldn't be the number one reason to book with someone... many factors should be taken into consideration when choosing a travel agent....

Dolores