Thread: Cruise Line's "Personal Cruise Consultants" how are they paid

Wanted to get a idea on how the person you talk to when you call a Cruise Line directly to research or book a cruise is paid. Do they work on commission, salary or a combination of both?

Talking with my wife about a furture cruise, I mentioned that I would call the cruise line directly and talk to someone and then research on the Internet to see if I could get a better deal with perks etc. Wife said this wouldn't be fair to person I talked to with the cruise line if they help give me information etc and I turn around and make reservavation with one of the on-line cruise sites??

Obviously, I'm prejudice on the matter, but knowing what I know after doing this for many years, I would never book a cruise through the cruise line!

First, and this was put out by CLIA (Cruise Lines International Association - that we all belong to), more than 95% of the time when you call the cruise line, you're talking to someone who works in a call center and they have never even seen a ship, let alone been on a cruise or to any of the ports you'll be visiting. Their job is to sell you a cruise, period. They represent the cruise line and not you, so should you have any problems, they really can't help you. And since they work for that one cruise line, they can't help you with information about another cruise line, resulting in you calling another company.

This is also true for alot of the online sites. Most of the people you talk to have never been on a cruise.

The call center employees work on salary, but they have certain quotas they have to meet and will get bonuses accordingly.

It's always best to work with an agent. First, the price will almost always be exactly the same price and often less. (They may have a group onboard.) But an agent represents you, not the cruise line. So if you have any problems, they can be invaluable. They don't charge any fees for their service, so it makes sense to utilize their knowledge and abilities when it costs you nothing.

Plus, a good agent will have been on many cruises so they can offer first-hand knowledge of the cruise line, ship, and ports of call. This can save you a great deal of time and hassle when looking at itineraries and deciding where to go and what to do.

So save yourself the time and trouble; don't book with the cruise line, use the internet for research, but book with a reputable agent that can provide you the service you need to help you find the perfect cruise for you. In the long run, it'll make your life alot easier as well as save you time and often money.

Pete

Pete,

As someone that normally uses a local brick and mortar TA, I recently contacted an on-line agency about a cruise on Carnival. The gentleman said that they would "refund me $75 on my credit card after the cruise" (he made a point to say that this was NOT an OBC). Needless to say, I was concerned with their offer, especially since they had a $49.95 fee for booking the cruise, which was not refundable and a $100 fee, if I cancelled.

I realize that TA's have to make a profit to stay in business. I know the cruise lines are making more and more of the total price we (the passengers) pay for a cruise "non-commissionable" and I know we (the cruise passengers) all want something from our TA for booking with them (e.g. a bottle of wine).

With that said, how do the legitimate TA’s survive?

Thanks for your thoughts on this.

Tom

I would stay away from that agency, Tom. ANY agency that does that is skirting around the cruise line restrictions about altering the price of a cruise. If discovered they might get their license suspended to sell cruises on that line. I also have personal reservations on any agency that charges a fee.

People wondered how travel agents were supposed to survive when the airlines cut commissions. They still make some money on the ancillary services and they do make some from the cruise line in the way of commissions.

I wholeheartedly agree with Neal - stay away from any agency that; 1) promises a rebate after the cruise, 2) charges a fee for their services, and 3) has a fee for cancelling.

A good reputable agency will not charge for their services or for cancelling. That's just the cost of doing business.

These people you're talking about are basically giving you back your own money - why charge it in the first place?

And any agency who promises a rebate after the cruise is, as Neal stated, going against the cruise lines' policies and put themselves in danger of loosing their credentials to sell those cruises. Obviously, not someone you want to do business with.

As for how do we stay in business, contrary to what alot of people think, it's not as glamorous as one wants to believe. It's like any other profession; lots of work, lots of attention to detail, lots of headaches, and lots of competition. Yes, it's not all gloom and doom, and we do get the occasional perk, like a reduced cruise, but often it's not as good as you think. In fact, sometimes, the advertised prices are better than what we can get it for. And no, we don't get free cruises!

But I've always been amazed by the number of people who will spend hours and hours researching a $2000 cruise just to save $25. Yet these same people won't spend 5 minutes to drive across the street and get a second opinion on car repair. The same is true for using a lawyer, dentist, accountant, etc. And they would never ever think of asking these professionals for $25 of credit or a free bottle of wine. Yet these same people will often decide whether to do business with a travel agent not because of their knowledge or expertise, but by whether they're offering onboard credit or wine. Go figure!

If an accountant provides good service, do people expect a gift? People don't spend hours searching for an accountant or even spend time comparing prices. They also would never think of taking up an accountant's time to answer 60 minutes worth of questions for free. Both the accountant and a travel agent are professional people providing a professional service. One makes money based on what they charge so their profit is built in and if they want to make more money, they can raise their fees. Yet the other one has no control over the charges and no control over how much they make on each sale. So why if a travel agent provides good service, do people expect a free gift in return? Or why do they think they can spend 60 minutes asking an agent alot of questions and getting them to do the research only to book with some unknown online site because they're offering a free bottle of wine? Doesn't make much sense, huh? Name me one other profession where clients expect or demand freebies (beside a calendar) from the person providing the service?

So you begin to appreciate how sometimes it can get really frustrating, especially when we get alot of people who are simply 'shopping'. We spend a great deal of time answering questions only to have the person book with someone else because they get a free bottle of wine. I know one agent who's a friend of mine and she basically tells people that she charges $50 to help them find the right cruise, which is then put towards their cruise should they decide to book with her. But if the person is just shopping around, she'll also tell them to please shop elsewhere as she can't afford to waste her time providing free information unless the person is serious about booking a cruise. So you can understand why some of these sites, like the one you mentioned, charge a fee - it weeds out the 'shoppers' and keeps the 'buyers'.

But she's been doing it for much longer than I have and she's just fed up with with people erroneously thinking travel agents make alot of money and are required to provide freebies out of their pockets while spending a great deal of time providing free information. Obviously, she's more cynical than most agents, but you can understand her sentiments.

As for how we stay in business with all this going on, it ain't easy!

I have a client who books 2 to 3 cruises every year and has been with me for over 8 years. She pointed out a few weeks ago that she was only paying a little more for her next cruise than she did 8 years ago. I looked it up and she is paying $100 more per person for a cruise this year than what she paid in 2003 for a very similar cruise. Think about how much the commission increased - hardly anything. Yet all of our costs involved in conducting business have increased dramatically over this same time.

Up until a few years ago, the number of travel agents in the U.S. had increased steadily and those involved in the industry usually stayed for many years. But since then, we've seen a huge turnover in the numbers - people get into the field thinking it's a glamorous job with lots of benefits. After a very short period of time, they realize it's not what they expected and get out of the business.

While all this is going on, there has become a bigger demand for 'freebies' by those who have no idea what they're talking about. They read and hear about someone getting something from their agent, so all of a sudden everyone thinks they're entitled to something. And yes, most agents provide something to their repeat customers to show their appreciation for the loyalty, but now even first-time cruisers demand something.

And thus enters the discount websites! Yes, there are many out there who are good and offer quality service. But there are many that are just in business to make money while trying not to provide any service. They promise all sorts of things from discounts, gifts, onboard credit, free insurance, free shore excursions, etc. They're betting on quantity not quality. Anyone can buy a website, but it takes hard work to provide the service that should go along with it. If you call them, you'll talk to someone who's never even seen a ship, let alone been to any of the ports. They are simply 'order takers', they are not travel agents. An agent is there to help you, answer all your questions, and insure you get the best deal for the best price. But most of all, even though they get paid by the cruise line, they represent you and are there when you need them to assist you in anyway they can. They want your business and will work hard to keep it.

I have a client who believed one of these so called travel agencies and bought their package. She pays $50 a month for a website and they promised her people would buy cruises through her site and she would not have to do anything but collect the commission. Over the course of a year, she's paid a fee to set it up (don't know how much that was, but I think it was about $1,000) and $600 for the site while making absolutely nothing. But hey, she had a website and could sell you a cruise!

Anyway, sorry for such a long dissertation on the matter, but as you can tell, it's an interesting subject and one that needs explanation because there is a huge amount of erroneous information and misconceptions out there. There's just no other profession that I can think of that's like it.

Aren't you glad you asked?

Pete

Hi Pete,

This is the type of discussion that is needed. I appreciate you taking the time to respond to my question and "telling it like it is".

Once upon a time, you could get a better price by "shopping around", but today, the price is pretty much the same from TA to TA – the only difference is service. Some of the internet TA's may advertise great deals or OBC, only to find out that your cruise or category does not qualify.

As a person that travels solo on most cruises - Carnival was an attractive cruise line because of its low single supp, but now, they have started a very bad (for the single cruiser) practice of "demanding" 200%. This has caused us to shop around in hopes of finding a better price.

Some day, cruise lines will realize that those of us that travel solo spend a lot of money in the bars and casino – both high profit areas – and maybe low the single supp a little bit to a reasonable amount. If the single supp was reasonable, we would cruise more often on their cruise line.

Thanks again for taking the time to answer my question and you candid response.

Tom

You're more than welcome, Tom!

You might be interested in this other thread where the discussion is about single cruising;

http://www.cruiselinefans.com/solo-c...-specials.html (Single Supplement on Celebrity - Current Specials)

I have several single clients, so I feel your pain and sympathize with you. I think the cruise lines are missing an opportunity, but hey, they never ask me for my opinion!

As for price, you're right. Almost all the cruise lines have policies about everyone advertising the same cruise for the same price - those going against the policies can find themselves loosing their credentials. So yes, alot of times it does boil down to service.

I had 3 couples book through me and one couple in the group book through one of these online sites. A few weeks later, the price dropped and I got my clients $100 discount on their cruise. The couple that booked through the online site called them and they would not honor the price decrease. Plus, if they cancelled, there was a $100 cancellation fee even though final payment had not been made.

So while it may appear attractive on the surface, sometimes it can come back to haunt you in the long run. Best to stick with someone you trust and will look after you. Often service will end up saving you money over initial discounts by those who are just out to make a buck.

Pete