Thread: OBC reduced when cruise price dropped?

Is it normal for a TA to offer an OBC and then drastically reduce it because the cruise line dropped the price of your cruise?

Originally Posted by jlou

Is it normal for a TA to offer an OBC and then drastically reduce it because the cruise line dropped the price of your cruise?

In my experience, the answer is yes.

On our last booking the TA was giving us a $300 OBC but when the price went down by $800 the OBC was reduced to $175. I was happy to still be getting OBC after a price drop that big!

Ours was even worse. The cruise dropped by $480, but the OBC dropped from $250 to only $75.

If it's the cruise line offering OBC, then it would depend on the special they're currently offering. Sometimes a special will not have OBC associated with it - often it's a better deal. So if you move to the special, you lose the OBC or it'll drop.

If it's the agent offering the OBC, then the amount of the cruise may or may not have anything to do with it. They are then offering OBC out of their own pocket to entice you as a client. However, some cruise lines have a 10% limit on this - in other words, an agent cannot provide OBC out of their pocket that is more than 10% of the cruise fare (not the cruise fare plus the port fees). So if the cruise price drops, then they have to drop the OBC offer to abide by the crusie line's policies.

So to answer your question, it depends on who's offering the OBC (the cruise line or the agent) and how the special affects the OBC.

Pete

It was directly from the TA, not the cruiseline.
The OBC went from about 6% of the cruise price down to less than 3% after the cruise price. Seems like the TA is taking a large percent of the cruise price drop to pad her commission. So, what was an enticement for us to book with her has been whittled down to almost nothing now that she has our booking.

The TA is rebating their commission and depending upon what cruise line it is they may be in violation of the new rules, however, we all know it goes on and no one is going to stop them from doing it. But make sure that you know all the rules and that should be posted as one of them for that TA. Also if there are price drops or cancellations are you paying a fee for them? Read the fine print and realize that you have no customer service to speak of through an online TA so you should be pretty knowledgeable about the product and the ins and outs of what you are doing.

With this TA, the only thing I got was the original confirmation noting the $250 OBC compliments of xxx travel agency. It also listed the price of the cruise, our down payment and final payment due date. When I called to have them adjust the cruise for the price drop I got a new confirmation noting $75 OBC and the new cruise price. When I questioned this I was told that the agency OBC was only $75 since the cruise price dropped.

I feel it was underhanded to drop the OBC that much and not informing us upfront about the details.

Seems like I am stuck with it and will take my business elsewhere next time.

I am very well versed in cruises and don't need hand holding, but can't seem to find a good TA.

That's the major problem when booking with someone like that. They entice you with OBC, but then all of a sudden the OBC decreases or disappears altogether. I've heard alot of stories about people booking with these online sites because they promise OBC. But when they got on the ship, there was no OBC and when they questioned it, they never got an answer or were given the runaround.

If they promise a OBC of $x amount, then they should provide it - the cruise price should have no impact on that whatsoever!

Personally, I do not recommend dealing with people like this because quite frankly they are interested in quantity and not quality. They would rather make less commission on each client and concentrate on more clients than trying to provide a good service to their clients. If you have problems and need assistance, do you honestly think they'll be there to help you? It's better to work with someone who treats you like you are their only client, not someone who treats you like another number - we get enough of that in regular our day-to-day life.

Sometimes it's better not to book a "deal". I always say look at the rate the cruise line is charging and an reputable agent should be charging the exact same amount. Anything less should warrant suspicion. That's not to say it's not a good deal, because they may have a group on board, but it won't be a significant amount. And if they're offering OBC, then make sure you get it in writing that this OBC is not affected by the price of the cruise. Lots of unscrupulous agents out there, that's for sure. But the same can be said of any profession. It's still better to work with an agent than directly with the cruise line or an online site; their expertise and assistance can be invaluable.

Pete

There are cruise line's that do not permit rebating of commission any more and then there are cruise lines that permit it. If I have to rebate commission on a line allowing it I do have to note on the invoice that the OBC will decrease by 10% for every dollar the price drops on the cruise. Otherwise, if the price drops $1,000 then their commission drops $160 and if they were offering $250 then they have to drop your obc some. So as Pete said - sometimes the best deal is not a good deal at all.

Originally Posted by patsea

.......So as Pete said - sometimes the best deal is not a good deal at all....

I agree - "if it sounds too good to be true, then it probably is". I would say never take a great-looking deal at face value, always look into it a bit further.