Travel Agent Commission

[tcook052]

When you book directly with the cruise line, they pay no commission to anyone thus earning more money for the company.

 

"More" is relative as the cruise line must also pay staff, benefits, etc. so it's not a total gain, more like a partial gain over going through a TA.

[mainelycruising]

I have always been curious as to when the Travel Agent receives his/her commission on your cruise. Is it after final payment? Or is it after you return from your cruise? I am too chicken to ask our travel agency. Always wanted to know.

 

Commission payment disbursement depend on the Host Agency, unless the TA works straight with the cruise line. Commissions are disbursed by the cruise line after the cruises commences (at the earliest) or anytime thereafter - almost always within 30 days. Then it is processed through the Host Agency, who take a cut, and finally gets paid to the TA. 30 or more days after a cruise embarks is not uncommon before a TA sees the commission.

 

In any event, the TA sees no commission before the cruise has commenced. A TA can work for many hours on a booking and not see a penny for weeks, months or even a year or more. Those not on a basic salary are very much at the whim of these dates.

[Gail & Marty sailing away]

This is the only way to cruise! :D Just get us the cabin we want and a good price. We will pick out our own bells and whistles.

I agree...

[Randyk47]

All we care about is net price after OBC's etc. We do not care what percentage the agency grosses and I don't care what the TA's end is. As long as we get the level of service appropriate to the type of agency we have engaged then we are happy campers. We don't want wine, chocolates in the cabin, coupon books, flowers,canapes, dinners in the Pinnacle...just the best net price once we have selected the ship/cruise. We will select and pay for the extras as we wish according to our desires.

 

This is the only way to cruise! :D Just get us the cabin we want and a good price. We will pick out our own bells and whistles.

 

This has basically been our booking model since 2004 when I was "educated" by a fellow CC'er on the Oosterdam. Over the years the savings we've gotten from our Internet TA has paid for our on-board expenses or, looking at it a difference way, we save enough over five or six cruises to pay for another cruise. We use a TA to book the cruise and nothing else. We don't have them recommend, book, or otherwise handle itineraries, cabins, dates, ships, cruise lines, tours, hotels, flights, etc., etc. This works for us but I understand it doesn't work for others.

[hal lover]

When I call my TA regarding a cruise that I am interested in and she gives me a price, I decide if that is a price that I can live with. I never inquire as to her commission. TA's are in the business to make money, just like any other of us that work.

[sammiedawg]

I had a business relationship with a well known princess agent, sadly now deceased. She worked from home, earned the maximum commision from Princess and discounted heavily. Her discounts involved rebating part of her commision in her price quote. She said she made $20 per cabin booked, some days she booked 30. Commisions vary depending on the agency volume with any particular cruise line. .Therefore she specialized in one line which was Princess.

I agree with the poster who said the only thing that matters is the net cost. I do not care about wine, specialty restaurant dinners, coupon books, chocolate covered strawberries. I factor in cabin credits, an important piece of the net cost. .

[BassettMom]

I booked my first cruise almost 2 years ago. At the time, I had been recently widowed and didn't want to spend the Christmas/New Years holidays at home. I had never been on a cruise, but thought it would be a good way to travel solo. I called my credit card travel and the TA I spoke with was wonderful. I had no idea what I wanted to do or where I wanted to go, just that I wanted to go on a cruise during the holidays. My TA spent a lot of time with me on the phone asking about what I like to do, what I was interested in, etc., to find a cruise line and itinerary I'd enjoy, made recommendations on dining, etc. That was the beginning of a relationship with my TA.

 

That first cruise, I received a lot of gifts--wine, chocolate covered strawberries, OBC, complementary HAL robe (which was not easy to stuff in my suitcase on the way back :D), free photo, dinner and lunch at Pinnacle Grill, one free excursion, and a free 7-night resort stay in Cabo San Lucas. Of course, I've booked all my other cruises with the same TA, although different cruise line (wanted to try Princess, and the dates and itinerary worked). I didn't receive nearly the same gifts (just a complementary dinner at Sabatinni's, wine, and coupon book--which in my opinion is almost worthless). I was told that her agency didn't have the same contract with Princess that they did with HAL. For my upcoming cruise on HAL, I thought maybe I'd get similar TA gifts, but was told that this year's contract wasn't as good as the one in 2010, and basically all I'm getting is complementary dinner at Pinnacle Grill. So I would guess that the TA gifts are based on what the agency is able to work out with the various cruise lines, or what her agency has decided to "promote"?

 

I've thought about checking around and booking with whoever provides the best "compensation" for booking with them, but I feel a strong loyalty for my TA based on all the help provided when I really needed it. I've been on Cruise Critic for 2 years, read over 25 cruise related books, and feel pretty knowledgeable about cruising (the folks at work now come to me for advice on cruising), so my TA only books my cruises for me and I no longer need her to answer questions, etc. Since that first cruise, I've booked 6 additional cruises through my TA, and only on the first one did she have to do any additional work. I do enjoy talking to her when I book a cruise; we've almost become friends, although we've never met.

 

I hate the thought of "dumping" her, but at the same time, I think I may be able to do better if I shop around, and I no longer need her expertise.

 

My question is, does anyone else feel a certain loyalty to their TA to the point that they would continue to book with that person even if other TAs provide more "compensation"?

 

(Sorry for the long post.)

[SJSULIBRARIAN]

BassetMom,

 

If by the word "compensation" do you mean "amenities provided to you." I don't think many TAs are providing the amentities that they used to because their "compensation" from the cruise lines is not as much as it used to be.

 

I use a TA for about one cruise a year - usually a longer one - out of loyalty but I also book direct with the cruise line, or online with the cruise line as it is much quicker than waiting for the TA to do it. The price I had been getting from the TA was not significantly different that what I get booking direct and I find it so much easier to handle the booking myself. In the early 80s I was a travel agent for about two years and the cruise lines paid more in commission then they do now.

[kazu]

I booked my first cruise almost 2 years ago. At the time, I had been recently widowed and didn't want to spend the Christmas/New Years holidays at home. I had never been on a cruise, but thought it would be a good way to travel solo. I called my credit card travel and the TA I spoke with was wonderful. I had no idea what I wanted to do or where I wanted to go, just that I wanted to go on a cruise during the holidays. My TA spent a lot of time with me on the phone asking about what I like to do, what I was interested in, etc., to find a cruise line and itinerary I'd enjoy, made recommendations on dining, etc. That was the beginning of a relationship with my TA.

 

That first cruise, I received a lot of gifts--wine, chocolate covered strawberries, OBC, complementary HAL robe (which was not easy to stuff in my suitcase on the way back :D), free photo, dinner and lunch at Pinnacle Grill, one free excursion, and a free 7-night resort stay in Cabo San Lucas. Of course, I've booked all my other cruises with the same TA, although different cruise line (wanted to try Princess, and the dates and itinerary worked). I didn't receive nearly the same gifts (just a complementary dinner at Sabatinni's, wine, and coupon book--which in my opinion is almost worthless). I was told that her agency didn't have the same contract with Princess that they did with HAL. For my upcoming cruise on HAL, I thought maybe I'd get similar TA gifts, but was told that this year's contract wasn't as good as the one in 2010, and basically all I'm getting is complementary dinner at Pinnacle Grill. So I would guess that the TA gifts are based on what the agency is able to work out with the various cruise lines, or what her agency has decided to "promote"?

 

I've thought about checking around and booking with whoever provides the best "compensation" for booking with them, but I feel a strong loyalty for my TA based on all the help provided when I really needed it. I've been on Cruise Critic for 2 years, read over 25 cruise related books, and feel pretty knowledgeable about cruising (the folks at work now come to me for advice on cruising), so my TA only books my cruises for me and I no longer need her to answer questions, etc. Since that first cruise, I've booked 6 additional cruises through my TA, and only on the first one did she have to do any additional work. I do enjoy talking to her when I book a cruise; we've almost become friends, although we've never met.

 

I hate the thought of "dumping" her, but at the same time, I think I may be able to do better if I shop around, and I no longer need her expertise.

 

My question is, does anyone else feel a certain loyalty to their TA to the point that they would continue to book with that person even if other TAs provide more "compensation"?

 

(Sorry for the long post.)

 

My TA does provide a discount and depending upon the length of the cruise some gifts at times. Can I do better elsewhere? absolutely. Are her prices better than HAL? absolutely. However, as knowledgeable as I like to think I am, I have hit times when I was really glad I had her 'on board'. I earned my living giving good service and I really appreciate it when I get it:) For me, she's worth her weight in gold - very knowledgeable, excellent service and always a pleasure. A good TA is worth their weight in gold and her service is worth it to me:)

[Randyk47]

My question is, does anyone else feel a certain loyalty to their TA to the point that they would continue to book with that person even if other TAs provide more "compensation"?

 

For me the answer is no but, in all fairness to my ex-TA, it isn't because she didn't do a good job or wasn't a nice person. When we first started cruising, back in the early 90's, there was a very nice upscale cruise only agency in the Tyson's Corner area of Northern Virginia. We stopped by one day out of curiosity and met the gal who would turn out to be our TA for our next five cruises. Two things happened around 2003-2004. One, we moved to Texas. Two, the cruise industry took a big hit post-9/11 and the agency in Tyson's Corner went under. Our old TA set up her own business out her home and we booked a 2004 cruise through her. On that cruise I met a CC'er who took me by the hand so to speak and educated me on Internet based travel agents/agencies. The thing that got my attention was that he was paying less for his cabin, two categories above ours. We still exchange emails, Christmas cards, etc., with our old TA but now book our own cruises on-line typically saving 12-15% on average. While some don't like the comparison I kind of look at it like any other consumer product where I can negotiate or find a lower price for the same service or good. It's not personal, it's business.

[Hawaiidan]

Costco TA told me that that they receive no comission.

 

Right, they do it from the goodness of their heart! So how do they stay in business selling things for free ? :o

 

They proably buy a block of tours for a very discounted price and make far more than a comission in raw up front profit..

So semantics," we make no comission because we are raking it in raw profit way more than any crummy comission !!!.

 

As to comission, agents I know tell me that the comission is paid on the net fare only Subtract Air, Tours, Tax, Port Fees, to get that net net comission base. It can ammount to several thousand less than the total fare.

[surfgram]

Quote:

Originally Posted by westlab

Costco TA told me that that they receive no comission.

 

 

Costco Travel operates as a call center and the "agents" who answer the phone do not receive commissions. When you call them, you don't have to speak to a particular person who is handling your arrangements. Anyone who answers the phone can help you.

 

Of course, Costco receives commissions from everything they book, but it is my understanding that their employees are paid as employees and not on a commission basis.

[Randyk47]

The posting was made two and a half years ago so it may or may not be their model today. That said I'd assume what they meant was that agents work on salary not commission. Of course where does the company get the money to pay them? Probably from the commissions they get for the combined sales. :) I have a neighbor who lost his job during the downturn and he now works for a new car dealer that advertises their sales staff doesn't work for commission. That's true but they have individual sales targets and if they don't meet them then their salary is docked and if they miss it too many months in a roll they're let go. Commission or no commission that business model still puts pressure on the salesperson to made a sale.

 

Of course the whole series of postings begs the issue that we're not suppose to mention travel agencies by name so maybe our comments won't last.

[kazu]

The posting was made two and a half years ago so it may or may not be their model today. That said I'd assume what they meant was that agents work on salary not commission. Of course where does the company get the money to pay them? Probably from the commissions they get for the combined sales. :) I have a neighbor who lost his job during the downturn and he now works for a new car dealer that advertises their sales staff doesn't work for commission. That's true but they have individual sales targets and if they don't meet them then their salary is docked and if they miss it too many months in a roll they're let go. Commission or no commission that business model still puts pressure on the salesperson to made a sale.

 

Yup - or they're "paid for performance" - if they exceed their targets they get bonuses.

[geocruiser]

I've been wondering this.... Do you consider it appropriate to give a little thank you gift to you TA after a trip? I'm thinking of creating a small photo book of scenic pictures from the trip or sending her a gift card for dinner....

 

What do you think?

 

We just love our TA. She works for an agency. Sometimes we get perks sometimes not. One thing we all ways get is great service. She has helped us so much. Lots of things can go wrong on a cruise. Ones we were on a cruise and a friend of our friend got very ill (could have died) and had to stay on the island in a hospital for two weeks. My TA just helped with every thing. Once my sister -in law had to leave the cruise before it was over. Once again my TA helped. She call shore to ship helped with everything and when we got home helped with the ins papers. I could go on and on about her.

I all ways bring her a gift at Thanksgiving, Christmas and Easter. We would use her even if her prices were not the best deal in town. There is something to be said for great service

.

[JimnKaren]

The TA that we use is right here in our community. I don't care when she gets her pay or how much it is...what I care about is that the money stays in our community! I have never met her, and only once did we speak (she called with a special deal) as we usually just to the e-mail thing. She doesn't always provide 'perks', but we don't care about stuff like that. I do send her lots of information about what happened on board so that she can share that information with other cruisers. The more she knows the better the customer feels about the transaction.

 

Jim

[Gypsea]

Thank you geocruiser and JimnKaren and all TA supporters. Travel agents can add value and service but most importantly a wealth of knowledge learned from experience, returning guests and the daily routine. It's not an easy job, as you can imagine, knowing how many details each and every trip entails.

 

Many people overlook the services agents help with besides choosing a ship and cabin. Transfers, insurance, shore excursion options, pre and post hotel, ins. claims, last minute changes, complaints, future cruise credits, upgrades, celebrations .... I won't get into visas, depature taxes, shots and all of the research each country and destination requires.

 

If you book with the cruise line directly the cruise line WILL love you, you are saving them 10-18% of cruise fare. THEY know you are forfeiting unknown perks that an agent could provide to earn your business or simply because the company he/she works with has contracted group space, and therefore amenities to give. Not every agency will have a group contract on every sailing of every ship but the large ones will have MANY of these!! Something the agent at the cruise line may not mention.

 

One more thing you should remember about travel agents, they get around, it's why we do this!!!! Therefore, they could ALREADY know from past visits about places you may be going to for the first time.

 

But the number #1 reason to use a travel agent..

.. the knowledge that you are providing a commission to a fellow American trying to make an honest living in a highly competitive industry.

 

For agents everywhere, I thank you!

[NYteacher]

I also want to mention how great it is to use a knowledgeable TA. We met ours on a HAL cruise. We met on line here on the cruise critic roll call and agreed to share a private tour as we were both traveling with children. Our families hit it off and he helped us find a tour to replace on that HAL cancelled. We didn't know HAL had cancelled the tour until we boarded and were particularly upset as it was on our son's birthday.

 

We cruised during hurricane Irene last year and he was in constant contact with us about missed ports and finding info about substitute port activities.

 

He specializes in cruises and returns calls and texts extremely promptly. We get occasional "swag" stuff with his company's logo. While all of it is actually really nice travel related stuff, his real value is his personal attention and knowledge.

[Spicey477]

I found this thread just by Googling, I'm not going on a HAL cruise (this time :), I'm actually booked to go in April on the Disney Wonder. We have a group of 14 going and we are all going through a TA who books land travel for a GF of mine, and then my sis used her for a trip to Mexico in Dec, and now all of us on this cruise. I feel bad all of the wrangling she has to do with all of these people, (and us finding lower rates and inquiring about those), and she has said a couple times that she makes commission on these fares. I just wasn't sure if that was a good or bad thing, for her, you know? We are all people who have cruised before and usually use Internet based companies, but with the group, she can help keep us all on the same page. We are not getting any perks or extras, but not really expecting any with inside cabins and taking advantage of kids sail free promos. Sounds like a gift card is in order when we return. :)

[DaveOKC]

In reading all these posts (old and recent), I am glad I finally dumped my large brick and mortar based TA.

 

First, the TA is nice enough, but really not very helpful (I seem to know more than she does about the line and cruise). On our last cruise we asked her to check for a better price after 2 different price drops, but before final payment, and she could not get it done. After final payment, the price dropped again and this time she "magically" got us a nice OBC. I wonder if she drug her feet on getting the actual price drop since it would have hurt her commission?

 

We normally book higher priced cabins, so she should be doing very well with our bookings. She used to give us OBC, or a $25-50 gift, but the last three cruises - nothing. Funny thing is, she stopped the extras right the one time we gave her a gift on our return (she must not have liked it!).

 

I guess I just got tired of doing most of the work for her, for no reward, and feet dragging to boot.

 

DaveOKC

[iancal]

I have never understood the big deal about how and what TA's are paid. Our only interest has been are we happy with their service and level of knowledge.

 

I have no doubt that most are paid on commission, probably with overrides or bonuses for volume or for certain products.

 

If one really wants to know' why not just ask your TA or a TA. I do not think that it is great secret. It might put an end to the speculation.

[solocanadian]

And I thought that TA's did it just for the fun of it! I was using the same TA for over 10 years with a nary an incentive or bottle of wine. We referred our friends to her and ususally had everything worked before we handed it over to her. I now book all of my own travel on line and direct through the cruise lines. It's a shame that she lost our business, but after reading some of the perks other travelers received, we took our business elsewhere.

Don't blame you.

[Northshorecruisers]

A great TA is worth their weight in gold. We use a guy that has his own small agency, only does cruises. And, boy, does he know his cruises! Wouldn't trade him for the world. And I like being in charge of my own air arrangements (my dad used cruiseline air once and the 9 hour flight with changing planes could have been done as a 3 hour direct for $20 more).

 

Hooray for all the great TA's out there!!!