OBC Reduced By TA

[happy 2 b cruising]

Need your input please. There was a price reduction on my cruise over the weekend which I found. I notified my TA and received the drop, then she tells me the agency will take away some of my OBC as a result of the drop. Is this a common practice when the cruise price drops. I am concerned if there are anymore price drops (which I appreciate) the TA will keep taking away additional OBC. Please tell me what your experience has been with OBC from TA with price drops, thank- you. P.S. we were getting the very low end of OBC to begin with.

[Karen@Steve]

Need your input please. There was a price reduction on my cruise over the weekend which I found. I notified my TA and received the drop, then she tells me the agency will take away some of my OBC as a result of the drop. Is this a common practice when the cruise price drops. I am concerned if there are anymore price drops (which I appreciate) the TA will keep taking away additional OBC. Please tell me what your experience has been with OBC from TA with price drops, thank- you. P.S. we were getting the very low end of OBC to begin with.

 

TA offer OBC is usually a percentage of the cruise cost. I'd check the percentage drop in OBC against Percentage drop in cabin price. If you're not happy with what your TA is offering you can always go shopping. Of course, that depends on if you got Perks from Celebrity in the first place.

[jelayne]

In checking prices on cabins it is pretty common that the lower the cruise fare the lower the OBC. As mentioned earlier OBC is normally a % of the TA's commission.

[Phxazzcruisers]

We love our TA and use her even though we do not get any OBC from her. I believe it would be very common for the amount of the OBC to be set by the price of the cruise as that is how they receive their compensation from the Ship line.

[The_Big_M]

Yep, it's the same as if you made a new booking with them.

 

If you're only booking a total fare of $2000, your OBC will be lower than if you were making a booking costing $10000.

[mafig]

I always ask the TA when booking if the obc will be reduced if the price goes down.

 

If it's from the TA it usually goes down. If it's from the cruiseline, it usually stays.

:)

[C 2 C]

TAs are usually restricted from 8 - 10% of the cruise fare, exclusive of taxes, for granting OBC or equivalent as a reward for booking.

When there is a price reduction in the ticket price, the reward has a corresponding reduction.

Booking direct with Celebrity is rewarded with access to your booking but little else.

 

In Canada the OBC is usually ZERO as a reward for booking with a TA.

[Sammy1]

In Canada the OBC is usually ZERO as a reward for booking with a TA.

 

This is why, being from Canada, we always use a US online travel agent, and get the generous OBC's being offered. ;)

[iancal]

Yes, it is very reasonable. It happens to us whenever we realize a reduction in the fare. As others have said, it usually based on a percentage of the commissionable fare.

[happy 2 b cruising]

TAs are usually restricted from 8 - 10% of the cruise fare, exclusive of taxes, for granting OBC or equivalent as a reward for booking.

When there is a price reduction in the ticket price, the reward has a corresponding reduction.

Booking direct with Celebrity is rewarded with access to your booking but little else.

 

In Canada the OBC is usually ZERO as a reward for booking with a TA.

 

I had read on many threads OBC in the USA is anywhere from 5 - 10 percent, that was the going rate, being I am getting less then the low end I thought they wouldn't take away from a very low OBC to begin with. Guess I need to find a TA that offers a higher percent OBC. Thanks for your input.

[Islandgirl4242]

Our TA has lowered our OBC each time we've taken advantage of the cruise price being lowered...in the end we're still waaaay ahead!! :D:D:D~~Judy

[AlanAllyn]

Just a note to add something.

 

The price you pay actually consists of three parts. The one that only appears on your TA's copy of the invoice is "Non Commissionable Cruise Fare". On your bill it is include in part of the cruise fare. Both bills then show taxes and fees. For example, on my Eclipse cruise, The Fare is $1759 pp., of which $350 is non commissionable. When the TA figures OBC, it is based on $1409, the commissionable part. That's what might go down and thus the reduction is based on the lower number.

 

We, too, have had OBC reduced when the fare went down.

[ariawoman]

OP - it's also going to be likely tied to the size of the agency you're dealing with. Someone dealing with a huge mass market agency (can't name names) can give more away as they have more to play with. If you're dealing with a small town brick and mortar TA that gives you personalized service but gets less in commission due to their volume, then it's likely that their OBC offering will be less.

 

The question you should really be asking yourself when using a TA is why are you using one, for the OBC, or for the service. You generally won't get the same level of service from a large TA as you will a small town TA. Of course there will always be a few exceptions to the rule, but in general, this is what I've found.

 

You should also ask when doing the price reduction what the impact would be then decide if the change is worth it. Maybe you'll keep the higher price and higher OBC and come up ahead of the game moreso than dropping the price and OBC.

[ariawoman]

Just a note to add something.

 

The price you pay actually consists of three parts. The one that only appears on your TA's copy of the invoice is "Non Commissionable Cruise Fare". On your bill it is include in part of the cruise fare. Both bills then show taxes and fees. For example, on my Eclipse cruise, The Fare is $1759 pp., of which $350 is non commissionable. When the TA figures OBC, it is based on $1409, the commissionable part. That's what might go down and thus the reduction is based on the lower number.

 

We, too, have had OBC reduced when the fare went down.

 

Great explanation AlanAllyn. If a cruise in total cost you say 2000 per person, it's likely that the commissionable portion after NCCF/Taxes/Fees/etc is 1500 or lower to a TA, and also realize that TAs receive a different commission based on their overall volume...a small agency might get 10-12% whereas the monster online ones will get 17% which gives them more wiggle room, but do they really do anything for you beyond do the booking, not typically.

[TeaBag]

We deal with a huge US on-line company and we have always had our OBC reduced when the fare drops and we ask for the reduction. We are still way ahead though.

[Sammy1]

We deal with a huge US on-line company and we have always had our OBC reduced when the fare drops and we ask for the reduction. We are still way ahead though.

 

Our US online company is also huge, one of the biggest I believe, and whenever we score a price reduction, sometimes the OBC is reduced a little, and sometimes not at all. As discussed, there are a number of factors that determine the impact. At the end of the day, we also are way ahead. :D

[wvufan]

Of course the OBC is usually reduced when the fare goes down, but we have found that it is proportionally smaller than the percentage of reduction in price.

 

We disagree with those who say one gets better service from a local brick and mortar. Unless they are very experienced cruise specialists, they may be a liability.

 

Also, for Phyxazz, your TA may be a wonderful person, but I think she is taking advantage of you by not offering some OBC. We usually book 14 night oceanviews or sometimes insides, and get about $300 per sailing.

 

Happy Sails to You

 

OOOEEE :D:D Bob and Phyl

[happy 2 b cruising]

Just love Cruise Critic, especially all the responses to my post. Thank - you for all your replies. Now I will watch for the Guarantees on Suites to come out :) Any idea if this only happens after final payment?

[ticktoneer]

TAs are usually restricted from 8 - 10% of the cruise fare, exclusive of taxes, for granting OBC or equivalent as a reward for booking.

When there is a price reduction in the ticket price, the reward has a corresponding reduction.

Booking direct with Celebrity is rewarded with access to your booking but little else.

 

In Canada the OBC is usually ZERO as a reward for booking with a TA.

It's zero in the UK as well. Travel agents offer no perks at all.

 

I always support UK pax booking with a US travel agent for the perks and better terms and conditions.

 

For example - we just booked Infinity on 30/09/2013 at a cost of $1600 and still got $100 OBC and complimentary wine with 2 meals.

[Hlitner]

Need your input please. There was a price reduction on my cruise over the weekend which I found. I notified my TA and received the drop, then she tells me the agency will take away some of my OBC as a result of the drop. Is this a common practice when the cruise price drops. I am concerned if there are anymore price drops (which I appreciate) the TA will keep taking away additional OBC. Please tell me what your experience has been with OBC from TA with price drops, thank- you. P.S. we were getting the very low end of OBC to begin with.

 

This is the norm and one must weigh the OBC versus the amount of the price drop. OBCs come in two forms (often unknown to the cruiser). One type of OBC is actually a promotion authorized by the cruise line (who pays some or all of the OBC) and these will usually go away if you reprice a cruise. The other type is paid 100% by the TA and that type may go away, might get adjusted, or will remain.

 

We recently went through the same issue with a HA booking. Originally we had a $300 OBC. But when the price dropped about $1000 we lost the OBC. But we were still able to grab a $250 OBC via our stockholder credit (the gift that keeps on giving).

 

Hank

[Chicago Boy]

We love our TA and use her even though we do not get any OBC from her. I believe it would be very common for the amount of the OBC to be set by the price of the cruise as that is how they receive their compensation from the Ship line.

 

 

Our TA is great. Her travel agency always offers an OBC which never appears on our account. We have to call and ask for it which I find rather annoying. Our TA always does very well by us so I finally told her to tell her boss not to offer the credit. It comes off their commission and we don't want that. She works really hard and deserves what she makes. :)