Do TA's make less on guarantee cabins?

[thejman]

I recently switched from a category C3 to an X veranda guarantee, and the OBC from my C3 confirmation to my X confirmation dropped dramatically in proportion to the total cruise price. C3 I was being offered 10% of the cruise price as OBC, and that dropped to 6% with my X category confirmation. Before I ask my TA about this, can anybody tell me if they have experienced something similar? A

 

Any TA's want to chime in? My TA has been helpful so I hate to go back and ask for more OBC, but I'm curious why the OBC was lowered so much.

[jerseygirl3]

The TA's commission is based on the price of the cruise. If the cabin price went down by booking the guarantee, then that could explain the reduction in OBC.

 

A TA's commission is generally 10%, but that percentage is not based on the total cruise fare. A significant part of the fare is considered "non-commissionable fare" which is deemed by the cruiseline (how they come up with that is unknown to me). Also, no commission on taxes and port fees.

 

Bottom line, the amount that the 10% commission to the TA is based on is significantly less than the passenger's actual cruise fare.

 

Jo-Ann

[thejman]

The TA's commission is based on the price of the cruise. If the cabin price went down by booking the guarantee, then that could explain the reduction in OBC.

 

A TA's commission is generally 10%, but that percentage is not based on the total cruise fare. A significant part of the fare is considered "non-commissionable fare" which is deemed by the cruiseline (how they come up with that is unknown to me). Also, no commission on taxes and port fees.

 

Bottom line, the amount that the 10% commission to the TA is based on is significantly less than the passenger's actual cruise fare.

 

Jo-Ann

Yes, the cabin price went down, but as a percentage of the cost, my OBC also went down from 10% to 6% from my original reservation. I'm wondering if guarantee cabins have less "non-commissionable" fare, so to speak?

[Fblack]

OBC's are not always a certain percentage of the cabin price. Sometimes the OBC on a suite will be substantially higher than an OBC for an inside cabin and is not just a percentage of eh cabin costs.

[jerseygirl3]

Yes, the cabin price went down, but as a percentage of the cost, my OBC also went down from 10% to 6% from my original reservation. I'm wondering if guarantee cabins have less "non-commissionable" fare, so to speak?

 

Yes, the portion of "non-commissionable fare" is less if the cruise fare is less, but the fact that your OBC went down 4% overall is probably based on the fact that the cruisefare went down. No matter how you look at it, the TA is making less commission, so they are making up that difference by lowering your OBC.

 

Jo-Ann

[80sGirl]

Yes, the portion of "non-commissionable fare" is less if the cruise fare is less, but the fact that your OBC went down 4% overall is probably based on the fact that the cruisefare went down. No matter how you look at it, the TA is making less commission, so they are making up that difference by lowering your OBC.

 

Jo-Ann

 

As a TA myself, I have no control over what OBC is being offered by the cruise line. Most offer less OBC for lower category cabins regardless of whether or not you book through an agent or do it yourself online. A suite gets more OBC than an inside ...

 

At any rate, your TA should be concerned with you getting great value. If they are only worried about their commission and force you into a higher cost cruise just to bump up their commission, then, frankly, why would you use them again? I wouldn't.

 

If they offered you a great OBC out of their commission as in incentive to book, then they should be prepared to honour that. Call her and talk to her about it.

[thejman]

Thanks for the responses everybody, but let me try again, I must not be explaining this correctly.

 

I am not receiving any OBC from Celebrity so the OBC differences between categories as a few have mentioned becomes irrelevant.

 

I am receiving an OBC from my TA as an incentive to book, which my TA is presumably giving me out of their commission. My original booking had an OBC from the TA equal to 10% of my cruise fare. My revised booking on the guarantee cabin, the TA lowered my OBC equal to 6% of the cruise fare.

 

I'm wondering if the TA gets a lower percentage commission on guarantee cabins, and thus had to lower the OBC offered to me accordingly? This would explain the discrepancy.

[jdvmd]

If you originally spent $3,000 on a cruise and received $300 OBC then switched to a cabin that only costs $2,000, you are not going to get $300 in OBC. You get the percentage from the total NEW cost.

 

 

Lower cost = lower onboard credit.

[thejman]

If you originally spent $3,000 on a cruise and received $300 OBC then switched to a cabin that only costs $2,000, you are not going to get $300 in OBC. You get the percentage from the total NEW cost.

 

 

Lower cost = lower onboard credit.

Indeed you are correct.

 

Lets say I originally spent $3000 and got $300 (10%) OBC.

 

Now I am spending $2000 and should be getting $200 (10%) OBC, agreed?

 

But I am not, I am not getting $120 OBC (6%).

 

Percentages versus absolutes really seem to be confusing people in this thread. Surely somebody out there can follow what I am saying?

[Gonzo70]

Thanks for the responses everybody, but let me try again, I must not be explaining this correctly.

 

You explained it correct, I think you just did not understand what people were saying about only a portion of the fare being commissionable. When your cruise drops in price, the non-commisionalble part (i.e. taxes and port fees and what not stay the same) - so the TA's profit margin drops.

 

If the cruise is $3,000, but $800 is non-commissionable (i.e. port fees, taxes, etc) the TA is only making commission on $2,200 of your total fare.

 

If the cruise drops to $2,000, the $800 in port fees and taxes etc. are still there, so now the TA is only making commission on $1,200. Since the percentage of the total fare the TA is making commission on is not much less, they cannot afford to give you a 10% OBC based on total cruise fare or they would be losing money on your booking.

[CathyCruises]

Indeed you are correct.

 

Lets say I originally spent $3000 and got $300 (10%) OBC.

 

Now I am spending $2000 and should be getting $200 (10%) OBC, agreed?

 

But I am not, I am not getting $120 OBC (6%).

 

Percentages versus absolutes really seem to be confusing people in this thread. Surely somebody out there can follow what I am saying?

 

 

I understand you completely, it wasn't all that hard to figure out. Geez!! If it was just dollar amount it would be understandable but I get your confusion over the reduction in PERCENTAGE! I changed from a guarantee at $999 with $250 OBC to a guarantee at $949, and my OBC went to $150! That made no sense to me and I argued with the large internet TA and I won! So give it a shot!

[aseg]

I understand you completely, it wasn't all that hard to figure out. Geez!! If it was just dollar amount it would be understandable but I get your confusion over the reduction in PERCENTAGE! I changed from a guarantee at $999 with $250 OBC to a guarantee at $949, and my OBC went to $150! That made no sense to me and I argued with the large internet TA and I won! So give it a shot!

 

I only know this: I've booked my last 3 cruises with the same internet agency. Each time I received a discount for State Residence, Senior Status or in the case of my current booking,a military discount the TA portion of my OBC was reduced. In this case it went from $200 down to $125, but I saved over $1000 with an upgrade from C3 guarantee to C2. My $200 OBC from Celebrity remained intact. You gotta give a little back to get something in return,

[CathyCruises]

I would have been okay giving up $25 of my $100 total savings, but not ALL of it! I get giving something to get something!