TA Rebates

[cwn]

In no way did I advocate eliminating TAs; they provide a valuable service. It just seems that the cash rebate system could be re-thought.

 

Aloha, Mark

 

If a company or person is willing to give up some of their commission or profit from a sale to reduce the price to the customer, be it a cruise or a washing machine sale, so be it. It happens in all bussiness all the time.

[tallship]

I concur with Hanalei Sailor ....what is the 17% for exactly?

 

Even if 5% is given back to the customer, what is the 12% for since we make our own excursion reservations, air, hotel, and dining reservations.....the value add is when the TA has a group rate or escorts the group but I have only done that once

 

This thread has been very educational as have several offline discussions

 

From a strategy point of view I am hard pressed to see why Regent would set such a high rate to start with.....

[HanaleiSailor]

If a company or person is willing to give up some of their commission or profit from a sale to reduce the price to the customer, be it a cruise or a washing machine sale, so be it. It happens in all business all the time.

 

I agree that this happens all of the time, just not what I am looking for in a 'luxury booking.' The business model just doesn't seem completely Kosher for some reason. To me, it seems a bit unsafe for the agent to forward the entire price of the cruise to Regent and then to rebate the customer in cash. What if the agency goes out of business or reneges on their promised rebate? There would be no recourse through Regent.

 

I am sure that there are great agencies out there offering great rebates, but if the average rebate is 7-10%, why monkey around moving the money from customer to Regent to TA (in the form of a commission), and then back to the customer in the form of a rebate? I've always thought that eliminating extra steps reduces the possibility of mistakes, misunderstandings and even fraud.

 

Again, perhaps as a new cruiser, I am looking at this from a different perspective, but as a small business person, this makes no sense to me!

 

Aloha,

 

Mark

[sherilyn70]

I agree that this happens all of the time, just not what I am looking for in a 'luxury booking.' The business model just doesn't seem completely Kosher for some reason. To me, it seems a bit unsafe for the agent to forward the entire price of the cruise to Regent and then to rebate the customer in cash. What if the agency goes out of business or reneges on their promised rebate? There would be no recourse through Regent.

 

This is correct... however Regent isn't going to give you that discount at all from my understanding. They take all of that money and run. If an agent does not deliver what was promised then in the US that is what the BBB is for and also small claims court.

 

I am sure that there are great agencies out there offering great rebates, but if the average rebate is 7-10%, why monkey around moving the money from customer to Regent to TA (in the form of a commission), and then back to the customer in the form of a rebate? I've always thought that eliminating extra steps reduces the possibility of mistakes, misunderstandings and even fraud.

 

Because they are bucking the system. They want to give the customer a reason to use them but are not allowed to reduce the sale price of the cruise. This is pretty standard in many business models where they want a fair a open market value for their product. Most of the makeup and skincare brands I purchase are like that, so was my Tempurpedic mattress. When a company constantly puts something on sale or reduces the price all of the time then they are undervaluing their product. When the TA decides to share their commission then they are the ones taking the cut, not Regent... and therefore is is the TA that is undervaluing their own services which they seem to find acceptable to make a few bucks. :)

[blue whale]

Someone asked if we had been happy with our SA cruise. The answer is "Yes!" We had an excellent experience. We enjoyed the people whom we met, the places that we visited, and the ambiance of the ship. We had done the SA on Mariner once before, back in 2002. That was a wonderful trip. The 2012 was even finer.

 

I wish I had known more about the rebate situation before we booked. This thread about the percentage of agent commission is most educational. I picked up names of agencies from fellow travelers while on board. People are most eager to share thoughts of their experiences with agents.

 

I know that we did not get the kind of rebate we should have. And since our agent has not sent us the promised rebate, we probably did the worst deal of anyone—zilch! Live and learn. The most important thing is that we had a wonderful trip and made friends with some fantastic people. We have wonderful memories.

 

D

[commodore2010]

When the TA decides to share their commission then they are the ones taking the cut, not Regent... and therefore is is the TA that is undervaluing their own services which they seem to find acceptable to make a few bucks. :)

 

Yes, exactly and that is why more than half of travel agencies in the U.S. have gone out of business in the last 15 years. They just keep shooting themselves in the foot.

 

Rebating is not a successful long term business model. All you are doing is attracting the customers who care about squeezing you for every penny they can sqeeze out of you. Customers who threaten to go to XYZ, where they can get X% rebate if you don't give it to them.

 

These agencies are giving the cruise lines another excuse to cut thier commission.

Why pay commissions to agencies when all they are doing is giving it to the consumer as a discount? So effectively, consumers can pay a lower price by booking with an agency than with the cruise line directly.

 

Didn't the agencies learn anything when the airlines took their commissions from 10% to 0% for basically the same reasons. I believe it is just a matter of time. Go read a Carnival Corp 10Q and you will see the booking metrics are changing. Once the metrics hit a certain level the hammer will drop. Great for me as a shareholder.

[cwn]

Someone asked if we had been happy with our SA cruise. The answer is "Yes!" We had an excellent experience. We enjoyed the people whom we met, the places that we visited, and the ambiance of the ship. We had done the SA on Mariner once before, back in 2002. That was a wonderful trip. The 2012 was even finer.

 

I wish I had known more about the rebate situation before we booked. This thread about the percentage of agent commission is most educational. I picked up names of agencies from fellow travelers while on board. People are most eager to share thoughts of their experiences with agents.

 

I know that we did not get the kind of rebate we should have. And since our agent has not sent us the promised rebate, we probably did the worst deal of anyone—zilch! Live and learn. The most important thing is that we had a wonderful trip and made friends with some fantastic people. We have wonderful memories.

 

D

 

Glad you had a good time...it is a great trip and worth doing more than once...I would go again, but DH has sworn off being on a ship more than about weeks at a time. Fortunately he is willing to travel for months at a time, just not all cruising.

 

After much reseach yesterday and today I have answered my own question of yesterday, I think!?. What is the base price for any given cruise?

 

After several calls to Regent and talking to different people, I got a price of cruise only with all the extras and discounts removed. Believe it or not I even got several different amounts! This ~number or within a $100 or so dollars was the ~number that the various agents, were coming up with also. The different agents then sweeten their pots with various amounts of OBC and maybe cash back, sent some time before the cruise departure, the largest being 18% which including OBC and rebate, the samllest out side of Regent direct (nothing) was .03% as OBC!

 

Yes, there is some risk with the rebate model, and maybe even with getting the OBC, but as long as your deposit and final payment are charged to your account directly by Regent, you haven't lost anything. Even with out the larger OBC credits and the rebates, the base amount paid for the cruise is close to what you pay going direct to Regent.

 

 

I was curious, had the time and was willing to comparrison shop. It was worth the time to me and most eye opening!!

[spiritkat090909]

I don't think I saw mentioned here... not all agents get the same percentage. Just as a customer who is loyal to one brand may get a higher status in a frequent cruiser type program, so also do agencies that SELL more of a particular brand get a higher commission. A small, independent agent won't be getting 17% commission...more like 8%. Volume sellers make higher commissions. So, it is possible that you may not be offered OBC from your TA ...simply because they can't afford to give one and still make a living.

 

(Not a TA) Just another 2 cents.

[blue whale]

thank you for all these interesting comments.

 

D

[WesW]

And Thank you Blue Whale/Dorothy for starting the Rebate discussion.

[blue whale]

Wes, yesterday I did get a call from the agency that has not paid the rebate promised us. The man said that he is going to send me an IOU indicating that the agency still knows it owes me the rebate. Whether we get anything or not is still a question. However, where there is hope. . . .

 

We have booked another cruise, but with another agency. Once burned. . . .

 

But the discussion of percentages here is an eye opener. Thank you to whomever started this second thread about rebates and commissions.

 

D

[Travelcat2]

landingsduffer actually started the thread and I'm not sure if this thread:

 

1. Made someone want to change TA's

 

2. If blue whale's experience has made anyone more leary of high percentage rebate tA's that may be depending upon volume to offset the loss of commission and may not have the rebate to give immediately if business is down.

 

3. Made osters happy to be with the TA they currently have:confused:

[Mjflowers]

Why begrudge a TA their fees. They also need to make a living. You use their services, expect the world, complain to them when something goes wrong, even if it is beyond their control, and then change TAs when you can get a better deal(rebate). Why not just do your own booking if you feel they do not deserve their commissions?

[Travelcat2]

Wow -- the last post really confused me. Most of us on this thread are interested in the differences in rebates from TA's. I agree that they earn every penny of their commission and do not recall anyone who posted otherwise. I suppose there may be a couple of people on this thread that may try to find another TA....... but, at least for me, I'm quite happy where I am and am not looking for a TA that will undercut others. JMHO

[English Tim]

Ok, the internet has made the world a bit of a cut throat place, but I feel most people will be loyal to an agent, if said TA performs well and offers a decent deal. My understanding and what I expect from a TA, is that I search for what cruise I want and they take my deposit and final payment and just act as a 'go-between', so they have nothing to do.

 

What other services do they provide to earn their commission?

[tallship]

English Tim -

That is the question that merits a response....what services do they provide over and above providing you the cabin number and invoice?

 

Perhaps it is that they assist some with air arrangements but I make my own and also book everything else myself.

[sherilyn70]

Why begrudge a TA their fees. They also need to make a living. You use their services, expect the world, complain to them when something goes wrong, even if it is beyond their control, and then change TAs when you can get a better deal(rebate). Why not just do your own booking if you feel they do not deserve their commissions?

 

See my post about undervaluing a product. No one is begrudging these TAs anything. The TAs are the ones creating the situation by giving rebates as incentives to gain customers. This was done by their own choice, it seems kind of silly not to take them up on it if it's out there and they can do what you need. In this day and age there are so many things we can research on our own though that we pretty much are just using them for the booking only and not for any actual assistance. I'm sure many TAs would rather we go to them and they share their money with us rather than having someone go directly to the source and then they get no money at all.

 

I suppose there may be a couple of people on this thread that may try to find another TA....... but, at least for me, I'm quite happy where I am and am not looking for a TA that will undercut others. JMHO

 

Of there will be people like me that don't have a TA and will be looking for one. I'd be a bit crazy not to base part of my decision on what incentives they offer knowing that there are many out there that do it now.

[tallship]

In this day and age there are so many things we can research on our own though that we pretty much are just using them for the booking only and not for any actual assistance. I'm sure many TAs would rather we go to them and they share their money with us rather than having someone go directly to the source and then they get no money at all.

 

 

Of there will be people like me that don't have a TA and will be looking for one. I'd be a bit crazy not to base part of my decision on what incentives they offer knowing that there are many out there that do it now.

 

Well said. There used to be a time before the internet where we needed intermediaries to do our bookings. I am just fascinated by this business model and wonder why cruiselines do this. Perhaps the cruiselines feel that TAs steer customers their way but it seems to me it is a lot to shell out for a referral. To keep up in this day and age, customer oriented loyalty programs would be a far superior way to drive business. As a consumer I will shop around....whether it is buying a new car or a trip....what will keep me loyal to a specific TA is the service provided over and above what I could obtain on my own.

[Suite Travels]

TC, this is not undercutting. This is business and our TA cuts the mustard. We are extremely happy with our agent after missing out on thousands of dollars over the years in benefits.

 

This is business 101, competition and free enterprise. When you are spending big money on luxury cruises you should do your homework as you would when buying a new car. I vote with my wallet.

[A Tucson Guy]

As others have mentioned, everybody has a different need and requirements from their TA. As for myself, I find the "deal" and I call my TA to "book em". I don't complain to her or bother her. Once in a while I may have her call Regent for a question. Kind of like the stock brokerage business and how it has evolved. Some people want a full service broker (and they will gladly pay for that) and some people want a discount broker (and will save money by doing that). The TA business is the same. If I need help booking air, she charges me for that on all air tickets. Usually I do most of our air on my own. Since I am a discount broker guy, certainly I expect part of the commission back to me. It's just business. Different strokes for different folks.

Aloha

[tnr]

There were a couple of times that I was very glad I had a TA. When we were stuck in Venice for a week because of the volcano, my TA spent hours waiting to get through to the airline to get new flight arrangements. She also helped us to find the last minute hotels we needed. Another time, my mother had to be evacuated from the ship to Florida. The TA was invaluable in so many ways, I can't even begin to count them. If things go wrong, a good TA is invaluable at any price!

[Wendy The Wanderer]

Don't forget also that a good TA will know the product well, and give you good advice about choosing the right cabin on a particular ship, deciding on gambling with a GTY, and help with the air deviation process.

 

I agree that in the internet world, we can get much of that by just reading Cruise Critic (but many don't, of course), but I must say, I don't know how many times I've read somebody posting here or on the Oceania board asking about a particular cabin, *after they've booked it*. So I'm sticking with a TA who I know and trust.

 

There were a couple of times that I was very glad I had a TA. ... If things go wrong, a good TA is invaluable at any price!

 

I absolutely agree with that. Fortunately we've never had to take advantage of this type of service, but I know my TA would be there if it was needed.

 

Why begrudge a TA their fees. They also need to make a living. You use their services, expect the world, complain to them when something goes wrong, even if it is beyond their control, and then change TAs when you can get a better deal(rebate). Why not just do your own booking if you feel they do not deserve their commissions?

 

I hear you. And I will also feel much better about complaining to my TA, something that I rarely do. :o

 

Well said. There used to be a time before the internet where we needed intermediaries to do our bookings. I am just fascinated by this business model and wonder why cruiselines do this. Perhaps the cruiselines feel that TAs steer customers their way but it seems to me it is a lot to shell out for a referral. To keep up in this day and age, customer oriented loyalty programs would be a far superior way to drive business. As a consumer I will shop around....whether it is buying a new car or a trip....what will keep me loyal to a specific TA is the service provided over and above what I could obtain on my own.

 

It is a strange business model, and obviously archaic in an age when travel agents for individuals have gone the way of, hmm, typewriters (still big in the corporate world). I would gladly book directly with the cruiseline, if they offered a package of incentives, or perhaps lowered their prices. Of course, Renaissance tried this, perhaps it was too soon, the market wasn't ready for it. But perhaps it would be now.

 

But, then I'd lose that good advice about cabins, etc. Because a cruise line is NOT going to steer you away from a bad cabin, let's face it. So there I am, back with my good TA.

[blue whale]

One of our problems came from the fact that our specific agent at the travel agency left and went to another agency. Some of his customers went with him, taking his bookings to the new agency. Others (like us) figured that the bookings were made while the agent was at his original agency and using the facilities there. The ones that jumped ship with the agent didn't have a problem. Those of us who were loyal to the agency were the ones that got in trouble—no rebate paid as promised.

 

There is an ethical question here—loyalty to an agent or agency???

 

D

[blue whale]

Keep the comments coming!

 

D

[Wendy The Wanderer]

 

There is an ethical question here—loyalty to an agent or agency???

 

Well, that's a good question. At least one person here commented that they like to deal with a specific person at their agency, and don't like it when he or she is not available. I too have that issue, but so far my agency has taken good care of me, no matter who I deal with.