Commisions

I suspect that many of us spend a good portion of our disposable income on cruising ( I know I do). If the subject of TA commisions isn't taboo, I am interested to know the rates paid by cruise lines to TA's for cruises, travel insurance,and other incidentals offered by the cruise lines.

That is opening up a Pandora's box. It's really none of our business how much anyone makes. Suffice is to say it's less than a hedge fund manager.

Why would any of us care what the commission is on the cruises we take.

Once you have gotten all the discounts you can get on the prices set by the cruise line, live and let live.

By the way, be happy you can afford to cruise.

PS..I am not a TA:)

There was a long and somewhat contentious thread on this topic on Celebrity boards (I think).

It does matter -- as the benefit (eg OBC) you receive from your TA is directly related to the commission the TA receives. If you know what the commission is you will understand your TA's generosity (or lack thereof). It's a highly competitive business and many posters on the other thread learned that they were getting substantially (hundreds) less from their TAs as others on identical cruises with identically priced cabins.

I can't imagine any cruiser would be happy with a $50 OBC when others are receiving $600 for an identical booking. One TA is making a lot more - the other probably will make it up plus in volume and referrals.

I think the question is interesting. We know a lot about what many people earn for a living, including the very wealthy (published each year), other salaries are published by Parade magazine, and we know salaries of government employees, teachers, etc.

Why should travel agents' commissions be secret? I am puzzled by this.

When you go to buy a car, there are services that let you know precisely what dealers have paid for vehicles, what special promotions are out there, etc.

The purpose of that is to negotiate, that is to bargain upwards from the price dealers pay, adding a reasonable commission of one's own and whatever two parties agree to is what price is paid.

I would appreciate any information that helps me to negotiate a better deal, and I will of course factor in the relationship I have with a TA, but I expect to pay competitive prices.

I can understand your post, John. If a cruiser has an idea of the amount of discretionary profit the TA has to work with, he is in a better position to calculate any benefits he may receive by booking with said agent.

What did become evident on that other thread is that those of us getting the best deals (on Celebrity - each line is different) were getting about 10-11% of the base price in OBC. One travel agent posted (angry and horrified by the revelation) claiming that she gives "service" instead. Most of us opt for cash LOL and get fine service too.

I get that much in OBC for Celebrity bookings from my TA (big online cruise company - I deal with the owner) and in return I give many referrals. That same TA got me a great discount on my 2012 Abercrombie & Kent trip. A & K is never discounted. My TA booked for me and split the commission (trip is very expensive splurge so we are talking a big number). Win win. Never hurts to ask.

From my same wonderful TA on O the most I get is free gratuities (through the Group rate the agency has). That agency also has enough clout to have a certain number of cabins committed to it for prime sailings.

My mother always said, "Anyone can pay the most - that's nothing to brag about." Words to live by.

That is opening up a Pandora's box. It's really none of our business how much anyone makes.

Really? Why not? When we sell/buy a house we know what % the real estate people will get.

Really? Why not? When we sell/buy a house we know what % the real estate people will get.

...and even that is negotiable.

I think there is a difference between shopping around for the best offer among TA's on a particular cruise and wanting to know specifically how much an agent's commission is from each of his cruise accounts.

One is merely good ground laying on your part, the other really is quite none of our business.

Jeanne, who is hoping not to step on a bunch of toes.

Would you like it if your TA asked you how much you earn so he would know how much to charge you in the first place?

If we paid according to our income (like income taxes) your post would make sense.

In our society poor or rich pay the same for most commodities and services - food, gasoline, airline tickets, clothing etc.

If someone wants to sell me goods or services, they should expect me to shop around for the best deal. I co-own a knitting shop and we are always cognizant of what neighboring shops are doing and what is available on line.

Price matters. Savvy consumers rule.

We all know approximately what the commission is, but it's one of those things that isn't considered polite conversation.

We all know approximately what the commission is, but it's one of those things that isn't considered polite conversation.

Maybe YOU know, but I have NO idea! Why is it considered impolite to ask? We know the commissions of so many other things we deal with.

Maybe YOU know, but I have NO idea! Why is it considered impolite to ask? We know the commissions of so many other things we deal with.

We know the percentage of commissions where the consumer PAYS that commission (such as a real estate deal or a money manager).

In a travel agent situation, it is the travel provider which pays the commission, not the consumer.

It might cross your mind to wonder how much your neighbor tips the newsboy, but you wouldn't ask the newsboy.

Stan and Jim You are incorrect. The TA's don't pay the cruise line,you the consumer is the one that pays. Since we're paying,we should know how much. Where are the TA's who are frequent contributors to this board. Can't one of them enlighten the unwashed?

TA's do not want you to know. If you know, then you know how much to reasonably bargain for OBC or other amenity. We are now inviting an angry post from a TA.

YOu need not know exactly how much the commission is to get a good deal. Shop around. Use the websites that compare cruise prices the way Lending Tree compares prices for loans. Compare apples to apples among different agencies and you will know if you are getting a good deal. There are HUGE disparities.

Case in point. I got a quote from my TA on a Regent cruise (decided not to take) where the OBC was in excess of 1200. I decided to go to a brick and mortar agency in town that also has a web presence. Same cruise. 250 OBC.

Stan and Jim You are incorrect. The TA's don't pay the cruise line,you the consumer is the one that pays. Since we're paying,we should know how much. Where are the TA's who are frequent contributors to this board. Can't one of them enlighten the unwashed?

You misunderstood me.

I was was not saying that the TA pays the cruise line I was saying that the Cruise Line pays the TA.

It becomes an even more delicate question because the size (or percentage) of the commission that a cruise line pays to the agents is considered a part af their marketing strategy and is therefore somewhat confidential.

Remember the old adage "Does Macys tell Gimbles" ?

I quite agree that it is permissible to "shop" around for the best arrangement in using TAs. However, the commission paid to TAs by Cruise Lines does vary - usually due to the volume written by each TA with the line. Personally, I feel that the commission received by each TA is their own business, and none of ours!

On several previous cruises, I have observed some passengers going out of their way to attempt to find out what sort of "deals" others received from their agents. These "attempts" were both crude and rude.

Bear in mind, all these "benefits" that passengers receive from their TAs come right out of their pockets. Doesn't it stand to reason that any agent who is required to provide extra freebies to get anyone's business is taking that out of their income. They cannot or will not continue that practice since they are forced to give up part of their income - from which they have to also pay phones, rent, postage, insurance, et el.

 

It might cross your mind to wonder how much your neighbor tips the newsboy, but you wouldn't ask the newsboy.

Really? I can't think of even one reason why I wouldn't my neighbor that bit of information. On our 1st cruise in 2001, we were on a line where you tipped individually. We had no clue what to tip the butler and asked every one we could for help. No one seemed to mind.

Since hotels, airlines, car rental agencies, etc pay TAs commission do you want to know those rates also. Are you going to bargain with them over price?

And food producers "pay" supermarkets for display space on shelves. Do you intend to bargain with your local supermarket over the price of a can of peas?

As to real estate, what does it matter what the commission is, you negotiate the best deal you can with the seller and they pay the commission (yes it is spelled out in the docs but it does not influence the final price) Many real estate agents will kick back part of their commission to the seller to close a deal.

It seems to me you find the best deal for you and don't worry about who gets what.

Given that CC is largely composed of savvy cruisers, I am really surprised by some of the comments on this thread.

When I go to purchase anything, I want to know the markup. It can be a car, a dress or a cruise. Doesn't matter. If I know the markup, I understand the true value. For small items, it really doesn't matter much. But when I am paying thousands of dollars for something, the markup is a big deal. Would you rather pay $200 or $800 over dealer cost for a car? A no brainer to me.

The commission paid to your TA is the retail markup. You can pay full price and let the TA have the full commission. Very generous of you. I wouldn't do that for a car and I certainly would not do that for a cruise. There are plenty of excellent TAs out there who "share" their commissions with their customers. In turn, they get referrals and lots of repeat business. In the end, they will be the ones who survive in a very competitive business.

But I'm not telling. The commission costs the client NOTHING--not one red cent. OBC, a bottle of wine or dinner at a specialty restaurant (on lines where they charge) all come out of the agent's pocket. Not the owner of the agency who gets anywhere from 20-50% of the commission paid by the cruise line. A $400 commission on a cruise would see the agent get between $200 to $250 of the amount paid by the cruise line. From that, you get your OBC or bottle of wine.

Pre-paid gratuities are usually awarded by the cruise line when an agency sells a block of rooms--10+. Most agents rebate (in the form of gifts) about 10% of the commission--and often a higher per centage because the agency doesn't share in the gifts.

What travel agents offer you is honesty, expertise, the ability to match you to the best cruise line for you, the willingness to make 15 phone calls to the line to get specific answers to questions you have, and the willingness to fight for you and plead your case if you have a problem. In other words, a great travel agent is worth his/her weight in gold.

Travel Insurance is where agents make a very good per cent. IF the insurance is bought from a third party--not the cruise line. Again, not one penny of the commission comes from the client. It is all paid by the insurance agency. Because of the commission earned here,TA's can spend a little more than 10% of their commission from the cruise line in the way of gifts.

Agents, even great ones, do not get rich. The money is in owning a good agency. I know whereof I speak because I was a travel agent for over 18 years. My clients always came back to me and told me that the service I provided was invaluable. I love to travel; thus, I love to help others travel too.

Mom C

Really? I can't think of even one reason why I wouldn't my neighbor that bit of information. On our 1st cruise in 2001, we were on a line where you tipped individually. We had no clue what to tip the butler and asked every one we could for help. No one seemed to mind.

You made my point for me. You asked your neighbors NOT the butler.

But I'm not telling. The commission costs the client NOTHING--not one red cent. OBC, a bottle of wine or dinner at a specialty restaurant (on lines where they charge) all come out of the agent's pocket. Not the owner of the agency who gets anywhere from 20-50% of the commission paid by the cruise line. A $400 commission on a cruise would see the agent get between $200 to $250 of the amount paid by the cruise line. From that, you get your OBC or bottle of wine.

 

Pre-paid gratuities are usually awarded by the cruise line when an agency sells a block of rooms--10+. Most agents rebate (in the form of gifts) about 10% of the commission--and often a higher per centage because the agency doesn't share in the gifts.

 

What travel agents offer you is honesty, expertise, the ability to match you to the best cruise line for you, the willingness to make 15 phone calls to the line to get specific answers to questions you have, and the willingness to fight for you and plead your case if you have a problem. In other words, a great travel agent is worth his/her weight in gold.

 

Travel Insurance is where agents make a very good per cent. IF the insurance is bought from a third party--not the cruise line. Again, not one penny of the commission comes from the client. It is all paid by the insurance agency. Because of the commission earned here,TA's can spend a little more than 10% of their commission from the cruise line in the way of gifts.

 

Agents, even great ones, do not get rich. The money is in owning a good agency. I know whereof I speak because I was a travel agent for over 18 years. My clients always came back to me and told me that the service I provided was invaluable. I love to travel; thus, I love to help others travel too.

 

Mom C

Beautifully stated, Mom C