Oh No! Not the Discount Question Again..

[cherylandtk]

I can't believe this question is coming up again....but today I got the following email from one of the major online discount TA's I have used over the years.

 

IMPORTANT ANNOUNCEMENT:

 

Princess Cruise Lines has announced that effective January 1, 2012, that they will NO LONGER allow DISCOUNTING of any cruises. All cruises MUST be sold at the current Princess market price. All promo codes are included. (including Captain's Circle rates). Non cash-based value adds will be allowed, but will be limited.

 

What does this mean for you???

 

It means you have until December 31, 2011 to book your new 2012 or 2013 Princess cruise with (deleted agency name) while we can still offer a 10% discount off the lowest qualifying Princess cruise fare. To help you out, we have also included a few special sale incentives for a limited sale period!

 

I had previously always been told (by this TA) that the new rule was only that TA's could not advertise discounted rates, but they could still quote and offer them if you called or emailed directly. The above communication says otherwise. So, any TA's out there want to chime in....is this just a ploy by one TA to bump up the sales price, is it a new communique' from Princess, or is it perhaps just a misunderstanding of the rule?

[kywildcatfanone]

Our TA told us basically the same thing several weeks ago. She advised me to book anything I am sure about before the end of the year. I'm still thinking about it....prices seem high, but maybe that's the point.

This could change my vacation plans away from cruising if the prices remain high, or maybe I've been spoiled...

 

Mike

[Pam in CA]

Cheryl, my TA told me the same thing yours did, that they just can't advertise or promote discount prices. But that was when it first came up on CC so I don't know if this is the case or not.

[MandE-UK]

I can't believe this question is coming up again....but today I got the following email from one of the major online discount TA's I have used over the years.

 

 

 

I had previously always been told (by this TA) that the new rule was only that TA's could not advertise discounted rates, but they could still quote and offer them if you called or emailed directly. The above communication says otherwise. So, any TA's out there want to chime in....is this just a ploy by one TA to bump up the sales price, is it a new communique' from Princess, or is it perhaps just a misunderstanding of the rule?

This is exactly what has been happening in the UK. It has resulted in very few TAs showing Pricess Cruises and also a hike in the cost of at least a third. We booked a trans -atlantic repositioning on the Grand but it was discounted by Princess. All the 6 TAs I contacted gave exactly the same cost as Princess themselves and said they were not even allowed to offer OBC now as an incentive.

[Coral]

delete

[snrlnd]

I asked the specific TA discounting question with the FCC Princess rep as well as the Captains Circle host on the Crown 3 weeks ago. They both said they knew nothing about TAs not being able to discount. In fact the CC host said it would be stupid for Princess to adopt this policy.

[Love.II.Cruise]

There is at least another cruise line that claims they have this policy. It seems to me that the ones that get hurt the most are the TA's. Why book with a TA if you can get the same price on Princess? Of course some people like the idea of the TA going to bat for you if something goes wrong (but we can fight for ourselves). To be honest, we've never gotten a better deal with our TA. The only thing we get out of our TA is a bottle of wine.

[yaletownboy]

wouldn`t be surprised if TAs just stopped promoting Princess.

 

They`d be alienating TAs if it`s all the same price.

 

There is no incentive for customers to go to a TA if there is no discounting.

 

No advertising of discounted prices would also be weird.

 

Princess is basically digging their own grave. If you`re losing money because your customers aren`t willing to pay your profit margin price, discounting is just cutting into `your expected profit margin`.

 

It`s all about greed. $$$$$$$$$

 

Other lines are starting to look better (even to a person who prefers PCL)

[caribill]

wouldn`t be surprised if TAs just stopped promoting Princess.

 

They`d be alienating TAs if it`s all the same price.

 

There is no incentive for customers to go to a TA if there is no discounting.

 

No advertising of discounted prices would also be weird.

 

Princess is basically digging their own grave. If you`re losing money because your customers aren`t willing to pay your profit margin price, discounting is just cutting into `your expected profit margin`.

 

It`s all about greed. $$$$$$$$$

 

Other lines are starting to look better (even to a person who prefers PCL)

 

 

Somehow this works with other cruise lines such as RCL which do not permit discounting. It may work out for Princess, but they had better build up their reservation staff to handle the people who see no reason to use a TA anymore.

 

People are willing to endure the hassle of not going directly to Princess with questions and changes when using a TA if there is a financial incentive to use the TA. They may not be willing to do so if there is no such advantage.

 

As for "If you`re losing money because your customers aren`t willing to pay your profit margin price, discounting is just cutting into `your expected profit margin`.", discounting did not cut into Princess' profit margin, it cut into the TA's profit margin.

[keagle]

 

It`s all about greed. $$$$$$$$$

 

 

From the customers, or the company? Seems a lot of cruisers like to get a free upgrade or something else for nothing, but are not willing to pay for what it is worth. Even when it comes to coffee.

[ROXIETHEHORSE]

Why is making a profit greedy? If they don't make a profit they can't stay in business. Cruisng is not a "right."

[sorvillo]

There is at least another cruise line that claims they have this policy.

[kywildcatfanone]

Our TA told us that she would still be able to give us a better deal, but would have to get creative to do so, including cutting into her commission deeper, but she said she was prepared to do so.

 

Mike

[Love.II.Cruise]

Our TA told us that she would still be able to give us a better deal, but would have to get creative to do so, including cutting into her commission deeper, but she said she was prepared to do so.

 

Mike

 

That's what our TA does. He sends us a bottle of wine from his commission. I know it's not much, but the gesture is nice.

[Iamcruzin]

I don’t think this policy will hurt Princess as much as it will hurt the Travel agents whose clients only use them because they discount. Most passengers don’t even know that Princess Cruise line allow the TA to discount and good discount TA’s seem to be far and few between. I have yet to find one. However I am at the bottom of the barrel when it comes to cruising. I book the least expensive room and I am not able to sail as long and as often as some of you here. Since I really can’t plan more than 8 months out and I am not picky about the room I shower and sleep in I have been able to pick up some last minute deals by booking directly with Princess and have also been able to save additional when the price drops.

[BosoxI]

Greediness? Making a profit does not necessarily mean being greedy. Competition without government interference is the best way to ensure fair pricing of any comodity. Am I being greedy when I look for the most inexpensive deal? I thought my TA was giving me a deal by cutting his own profit. Am I wrong? One of the main reasons for staying with Princess has been the pricing. If that's no longer an advantage for me, the world of cruising now has opened up to lines I only slightly considered before. How does Princess profit by losing me as a customer?

[DGNY]

Given supply/demand dynamics, I'd think the Princess rate will come down closer to what TAs have been discounting previously. Otherwise, rooms will start going empty.

 

Also, instead of the discount, TAs will start giving more OBC. Much like they do for passengers booking on RCI.

[MandE-UK]

Given supply/demand dynamics, I'd think the Princess rate will come down closer to what TAs have been discounting previously. Otherwise, rooms will start going empty.

 

Also, instead of the discount, TAs will start giving more OBC. Much like they do for passengers booking on RCI.

THe TAs in UK have been told they cannot give OBC. It remains to be seen if that also happens in the States. My worry is the massive increase price over here which just coincindentally coincided with the stopping of discounting.

[KAWS]

Our TA just gives us a larger amount of OBC if she can't discount the cruise. For example she gave us a discount on our upcoming Princess OBC but for our last Royal cruise she gave us three times the amount of OBC (for the cabin in both cases). So it all works out in the end. She has never said it comes out of HER commission, and I've always assumed that the company absorbed some of it and the rest was at her discretion. Either way we're both happy with the end result and I'll continue to use her and recommend her whenever I can.

[Beopthtuh]

THe TAs in UK have been told they cannot give OBC. It remains to be seen if that also happens in the States. My worry is the massive increase price over here which just coincindentally coincided with the stopping of discounting.

new ships cost money and refits on all the grand class are complete refurbs.

so carnival are clawing money back by pumping up the cruise price of the line .

seems were going to have a 3 tier carnival cruise line group

bottom end

carnival cruises, costa cruises

mid range

h.a.l, princess cruises, p&0

top end

yachts of seabourn, cunard .

 

the question is do we as princess passengers stay or go .

are there other lines that are as good or better.

 

well after 13 years of cruising princess, we all have our whinges but im staying with the sea witch. were used to high prices,s and no discounts in the uk ,it may mean coming down a deck or 2 but thats a sacrafice im willing to accept

[englishbird]

This is exactly what has been happening in the UK. It has resulted in very few TAs showing Pricess Cruises and also a hike in the cost of at least a third. We booked a trans -atlantic repositioning on the Grand but it was discounted by Princess. All the 6 TAs I contacted gave exactly the same cost as Princess themselves and said they were not even allowed to offer OBC now as an incentive.

 

 

I am a TA in the UK and this has been in place for a few months. If we discount Princess, P&O or Cunard we will be breaking our commercial agreement with these cruise lines and they can stop us from selling them.

 

They actually reduced our commision from 15% to 5 %, so theres no way we can afford to discount even if we wanted to. As any discount we give comes directly from our commission.

 

Customers in the UK will get the same price from Princess Direct and High Street TA's. The only exception to this is if a TA has Princess Group allocation, then you may get some OBC.

 

:D

[toberman]

Don't know what's going on but I got 2 quotes today from two large US TAs for a cruise in Nov 2012. One price was $150 more than the other but they gave an automatic $50 OBC. So don't know if one company is still discounting, or the other is marking up prices?? Possibly Princess is doing what they have in the UK and dropped commissions, so this one company is trying to get it back... just don't know. My B&M TA will not give discounts and no longer gives OBCs or perks, so I'm guessing their commission has been lowered.

[MCC retired]

Most other cruise lines have prohibited discounting for some time now.

TA's have worked abound this restriction by offering obc's despite the cruise line statement about monetary give backs. Also many will still discount if you pay final by check as they can issue an agency check to the cruiseline less the comm.

[MandE-UK]

I am a TA in the UK and this has been in place for a few months. If we discount Princess, P&O or Cunard we will be breaking our commercial agreement with these cruise lines and they can stop us from selling them.

 

They actually reduced our commision from 15% to 5 %, so theres no way we can afford to discount even if we wanted to. As any discount we give comes directly from our commission.

 

Customers in the UK will get the same price from Princess Direct and High Street TA's. The only exception to this is if a TA has Princess Group allocation, then you may get some OBC.

 

:D

Thank-you so much for this 'Englishbird' I might add that in addition to this, that at the same time Princess have also put up their prices considerably. Perhaps when January comes and our American cousins are subject to the same policies as us they will realise what we have to put up with.

[whatcruiseisnext]

The nondiscount for US is not in effect until January 2012 so any quotes you get right now would not be affected by the new rules that are not yet in effect.