TA's pricing...false advertising or common practice?

We've used the same "cruise-only" TA for 10+ years, and have usually been quite satisfied with the service. The agency distributes a monthly newsletter and frequent e-blasts about "special deals" they're offering. Recently we've noticed that their deals aren't really that special. For instance, their ads offer $599 for an oceanview cabin on 7-nt. cruise, while RCI's website shows a cabin in the same category for $200 more. Seems like a good deal until you actually book the cruise with the TA. Then they tack on $250 in "port fees, taxes, etc." per person. If you book the same cabin on the RCI website for $799/person, they add only $50 in port fees & taxes...making the total price exactly the same as the TA's.

When I questioned our TA about this, the response was "Well, RCI just breaks down the charges differently than we do." Is this common TA practice...or just plain misleading?

We've used the same "cruise-only" TA for 10+ years, and have usually been quite satisfied with the service. The agency distributes a monthly newsletter and frequent e-blasts about "special deals" they're offering. Recently we've noticed that their deals aren't really that special. For instance, their ads offer $599 for an oceanview cabin on 7-nt. cruise, while RCI's website shows a cabin in the same category for $200 more. Seems like a good deal until you actually book the cruise with the TA. Then they tack on $250 in "port fees, taxes, etc." per person. If you book the same cabin on the RCI website for $799/person, they add only $50 in port fees & taxes...making the total price exactly the same as the TA's.

 

When I questioned our TA about this, the response was "Well, RCI just breaks down the charges differently than we do." Is this common TA practice...or just plain misleading?

RCL does not allow TA's to discount their fares. The only way a TA will have lower fares then RCCL is to be holding group space. The online site is advertising the base rate without any of the non-commissionable portion or the port fees/taxes added in. It is the same cost in the end but just starting from a different starting point.

We've used the same "cruise-only" TA for 10+ years, and have usually been quite satisfied with the service. The agency distributes a monthly newsletter and frequent e-blasts about "special deals" they're offering. Recently we've noticed that their deals aren't really that special. For instance, their ads offer $599 for an oceanview cabin on 7-nt. cruise, while RCI's website shows a cabin in the same category for $200 more. Seems like a good deal until you actually book the cruise with the TA. Then they tack on $250 in "port fees, taxes, etc." per person. If you book the same cabin on the RCI website for $799/person, they add only $50 in port fees & taxes...making the total price exactly the same as the TA's.

 

When I questioned our TA about this, the response was "Well, RCI just breaks down the charges differently than we do." Is this common TA practice...or just plain misleading?

When I questioned our TA about this, the response was "Well, RCI just breaks down the charges differently than we do." Is this common TA practice...or just plain misleading?

Common practice, just like advertised air fares. The taxes and fees are usually NOT included in the ad pricing.

A TA only makes commission on a portion of the actual charges you pay. A cruise fare may be 500, but the non-commissionable portion is $159. Add on to that government taxes and you get the total per person charge.

So those advertised rates of $199 per person? A TA may only earn $10 or less on the booking even if you paid $329 after all is said and done.

Flagger,

I take your point but most people reading ads aren't interested in the TA's income so much as what their trip will cost them. I hate the way airlines do this even more. We saw a $399 airfare to England and then once you started to book, it went up to $857. $300 of that was fuel surcharges, which are just part of the airline's operating costs being singled out so they won't have to pay commission. They won't just call it $699 because then people wouldn't book but whoever thinks that a jump from $400 to $850 is ok needs their head examined.

I was just explaining that some TA's advertise only the cruise fare from which they derive commission. The example by the OP shows the cruise fare plus the part that the cruise line pays no commission.

I was just explaining that some TA's advertise only the cruise fare from which they derive commission. The example by the OP shows the cruise fare plus the part that the cruise line pays no commission.

I understand that you were just explaining. I just wish they would not do this. I think that some prices we seem, we just presume there will be a bit more, like you presume hotel rates will have local taxes added in. Others, like advertised airline fare, are downright mis-leading. I think that outside of local taxes, travel fares should reflect something close to what the invoice for the trip will be.

And so it goes... DO you think you really can get a whole house alarm system for $99?

And so it goes... DO you think you really can get a whole house alarm system for $99?

No, but I've never bought one. I do see what you mean, though.

As a TA, I never do this. I give the entire price, and state that it includes Port and Taxes, and fuel Supplement if Applicable. I quote the insurance price as extra if the client wants that. True only the Cruise fare is only commissionable, but you still have to pay the entire amount.

Diane G

We've used the same "cruise-only" TA for 10+ years, and have usually been quite satisfied with the service. The agency distributes a monthly newsletter and frequent e-blasts about "special deals" they're offering. Recently we've noticed that their deals aren't really that special. For instance, their ads offer $599 for an oceanview cabin on 7-nt. cruise, while RCI's website shows a cabin in the same category for $200 more. Seems like a good deal until you actually book the cruise with the TA. Then they tack on $250 in "port fees, taxes, etc." per person. If you book the same cabin on the RCI website for $799/person, they add only $50 in port fees & taxes...making the total price exactly the same as the TA's.

 

When I questioned our TA about this, the response was "Well, RCI just breaks down the charges differently than we do." Is this common TA practice...or just plain misleading?

Just for the record, RCL does not tack on port fees, they are included in the price of the cruise. All cruise lines now have to include port charges in the cruise fare, ever since that class action law suit years back.

The TA does not get commission on the part of the cruise that is port charges, so they break it out as a separate line item, but the bottom line is still the same.

Just wanted to clarify that RCL does not tack on port charges ...

Just book it yourself directly with the cruise line. They will tell you exactly what you are paying for. Third party - OUT

I booked our Alaska cruise last week, advertised for $279 pp... My total came to $640 per person :(

I was just explaining that some TA's advertise only the cruise fare from which they derive commission. The example by the OP shows the cruise fare plus the part that the cruise line pays no commission.

It may not be illegal but highly unethical. It is truly misleading. TA business as usual. :cool:

Thanks for the explanation...now I understand the difference in pricing. But I still think it's a misleading approach, especially when the TA is advertising to first-time cruisers. Although most people expect there to be some additional costs for taxes, etc...I don't believe many customers are aware that a TA can't actually discount a fare and they would just compare the TA's ad to the price on RCI's website.