Allowed OBC from Travel Agents

[Jim Avery]

I know this has been discussed before but I have searched high and low and can’t find a thing. What are the rules for TAs giving OBCs?

thanks.

[Heidi13]

Jim,

 

Based on the policy, TA's are limited to:

• 7 days, or less - $150 pp
• 8-14, incl - $300 pp
• 15 and more - $500 pp

It also addresses group rates, so basically a TA cannot negotiate a group rate and then advertise to the public. The group must be established first.

 

https://www.vikingcruisescanada.com/terms-conditions/advertising-and-commissions-policy.html#:~:text=Travel Agents may not advertise,similar booking with Travel Agent.

[Eggtuary]

How long does one have to transfer from a Viking agent to an independent?

 

And how does one identify a good TA?

 

 Thanks!

[CCWineLover]

14 minutes ago, Eggtuary said:

How long does one have to transfer from a Viking agent to an independent?

 

And how does one identify a good TA?

 

 Thanks!

I'd start with travel agents you know.  Have you not ever used a Travel Agent before?

You surely have an idea if they are good or bad or in - between.

We can't recommend Agents on this forum, but there are certainly many good ones out there.  I'd call around and find out what they will do for you.  Interview them!  They have to be hungry for business.

[Canberra601]

9 hours ago, Heidi13 said:

Jim,

 

Based on the policy, TA's are limited to:

• 7 days, or less - $150 pp
• 8-14, incl - $300 pp
• 15 and more - $500 pp

It also addresses group rates, so basically a TA cannot negotiate a group rate and then advertise to the public. The group must be established first.

 

https://www.vikingcruisescanada.com/terms-conditions/advertising-and-commissions-policy.html#:~:text=Travel Agents may not advertise,similar booking with Travel Agent.

Hi Heidi13, are you aware if this only applies to TAs in the USA/Canada or if it also applies in Australia too.

[Eggtuary]

9 hours ago, CCWineLover said:

I'd start with travel agents you know.  Have you not ever used a Travel Agent before?

You surely have an idea if they are good or bad or in - between.

We can't recommend Agents on this forum, but there are certainly many good ones out there.  I'd call around and find out what they will do for you.  Interview them!  They have to be hungry for business.

Nope, I haven’t used a TA before. I have always handled all my own arrangements. But I also haven’t spent a ton on travel, outside of a couple of Disney trips. 
 

i do know a TA, but I have seen comments that some TA’s know Viking better than others, and the TA I know seems to be more knowledgeable of Disney than anything. 

Edited August 27, 2021 by Eggtuary

[Heidi13]

8 hours ago, Canberra601 said:

Hi Heidi13, are you aware if this only applies to TAs in the USA/Canada or if it also applies in Australia too.

 

Sorry, can't help with this one.

 

May I suggest doing a search for, "Viking Ocean Travel Agent Policy". It picks up my IP Address and directs me to our local N/American website, so hopefully it may also pick up your IP address and direct you accordingly.

[Clay Clayton]

For those of us (like me) that are more comfortable with doing our own research, figuring out on our own what cruises fit our needs, etc. I would suggest your first question to prospective agents should be: Do you provide the maximum Viking allowable shipboard credit?  If the answer is no, then I would suggest moving on down the list. 
 

We found our agent via these boards after a fellow CCer mentioned the shipboard credit. Otherwise we would still be booking direct. But the shipboard credit normally covers our daily service charge and leaves a little that covers the bar tab. Of course now that we are considering the 32 day Hawaii/Polynesia cruise I have realized that if we ever take a cruise longer than 33 days, we will have to budget for the service charges since 33 days or so will use up all the credit😢

[Eggtuary]

Thanks, Clay!  Good point. That was the main thing that interested me in getting a TA in the first place. I didn’t even think about not all TA’s having the ability to get that. 
 

But I also like the idea of a TA handling Air Plus for me, especially as crazy as flight rescheduling is these days. 

Edited August 27, 2021 by Eggtuary

[Clay Clayton]

15 minutes ago, Eggtuary said:

Thanks, Clay!  Good point. That was the main thing that interested me in getting a TA in the first place. I didn’t even think about not all TA’s having the ability to get that. 
 

But I also like the idea of a TA handling Air Plus for me, especially as crazy as flight rescheduling is these days. 

I suspect all TAs have the ability but I presume that the shipboard credit comes out of their commission and some aren’t willing to reduce theirs that much, whereas others like ours are thankfully. 
 

I’m not sure what the benefit of having the agent deal with AirPlus is…my complaint with travel agents (going back to when I had had to use one when working as the agency kicked back a percentage of their commission to my employer)is that they couldn’t know what I was willing and unwilling to do (earlier flight, later flight, etc).  So having a travel agent in the middle for AirPlus is one thing I don’t like, but I’m frugal enough to deal with it to get the shipboard credit.  
 

Maybe that is because we have only used Viking air twice-both times when it was “free”. The first time we sprung for AirPlus as we wanted to fly AA on specific flights so we could use some upgrade vouchers. It was pretty easy, I sent our travel agent our 1st, 2nd, and 3rd choices in both directions and we got the first choices.   The second time, we didn’t bother with AirPlus as there were only two or three routings from Hong Kong to Seattle and we could live with any of them. We were surprised but happy when they booked us on the most expensive one which was a non-stop. 

[DrKoob]

This topic always stops me cold. I use a TA and always have. Why wouldn't you. Their services are free, but...

 

I have a question for you. When you go to a store and buy something, do you ask the person who helped you to put their hand in their own pocket and give you some money back?

 

For instance, when you buy a pair of shoes at a shoe store, a nice person helps you find just the pair you want. He or she brings you a number of pairs or shoes. When you find the pair you want, you go to check out and pay for them. Then would you turn to the sales person who helped you and say, “Could you please give me $10 out or your own pocket?” Not the shoe store’s money, the sales rep who just spent the last half hour finding you shoes-you-love personal money.

 

Expecting refundable OBC from a TA is pretty much the same thing. TAs make commission from the cruise line, not from you. And unlike that shoe salesperson, TAs don’t get paid an hourly wage. They work on commission only. If you ask them to do a ton of work, then book with someone else, they don’t get paid for any of that time. You are charged the same price whether you book through them or not. When they give you OBC, it comes out of their own pocket. Why would you expect them to do that? They are doing a bunch of work for you for free and yet you still think that a “good” TA will give you OBC out of their own pocket. 

 

Now if they give it to you without asking...that's awesome. But I just have a problem with new cruisers who have heard that their friends get x-amount of freebies. That's their first question (even before they book the cruise)...how much are you going to give me.

 

My TA gives us lots of great stuff but I also never ask for it. I come to her with just about everything done (usually I have booked on board) so she has little work to do other than a single phone call or computer booking. And believe me, there are lots of small moms and pops everywhere. We accompanied our TA on a ship visit last summer here in Seattle. Her and about 100 other travel agents got to tour and have lunch on the NCL Bliss (quite a ship) and I would say that more than 80% of the agents were either booking from home, working with a franchise (which means they make at most 7.5%) or working for another small agency. None of those people get paid by the hour. They get paid when they sell a cruise and every penny that they give back, is one they don't get to feed their families, take their cruises or whatever they do with their money.

 

And I totally understand the sales job thing having been in sales and marketing for more than 38 years. I can't count the number of presentations I have done where the client has gone another way. I have no problem with that (yes I do, but I get it--they like something that someone else has better than what I have) but when they go into the sales process having already decided that no matter what this person does for me, I am buying from the absolute cheapest I can find, that's wrong. If you want the cheapest, go to Costco. You will get the service you deserve but you will cruise cheaply.

 

Sorry, just a pet peeve of mine.

 

Jim

Edited August 27, 2021 by DrKoob

[Jim Avery]

Hi Jim,

Sounds like us.  I always work out exactly what we want then take it to our guy at Viking so he gets credit. Then,  within 60 days of booking, transfer to a TA to be our advocate if needed.  If they give something great.  They don't, as you say, cost anything extra so why not.  And on the Viking World Cruises they include so much stuff including generous obc that the stuff the TA might give is not much more.  This way our guy at Viking gets credit, our TA gets some income, and we get two people we can contact for help with any issues. 🍸

[Squawkman]

I agree with DrKoob with a little twist. On our second Viking River cruise, we took random seats with 2 other couples - and realized that one of the women was someone I went to high school with in the mid 1960s. She gave us the name and extension of her Viking agent - and the service level we get from him is incredible - we’ll worth forfeiting potential OBC from an independent TA. More than once he found discounts we didn’t know about - not to mention his knowledge gained over his several years with Viking. As I write this, I am reading Jim Avery’s post and basically agree with his approach. Our only wish list itinerary Viking didn’t do was 2 weeks in Hawaii. We were considering other cruise lines until, lo and behold, Viking added the exact itinerary we want. 

[Eggtuary]

Thanks for all the insights!  You’ve given me a lot to think about. 
 

Unfortunately, it’s been 64 days since I booked.   So now I can’t simply transfer to my TA acquaintance. I would have to pay $200 in cancellation fees. 

[Clay Clayton]

While I understand the latest points, I am afraid I have to disagree. If I knew I could buy those same shoes at a different store for $10 less, I would likely say to the salesperson, I would rather buy these from you but I can save $10 by buying them down the street. Anything you can do?  (Actually for $10 I might not buy for $1000 I sure would)
 

 I look at it the way I look when a restaurant offers me a BOGO offer.  If the steak, service, facility, and location are equally good, I’ll go with that BOGO place. Similar with a travel agent…if one will put money in my pocket and another won’t, I’ll go with the money thankyouverymuch.  I don’t criticize an agency that can’t afford to kick back part of their commission but I also don’t criticize myself for using one who does. 

To my knowledge the money isn’t coming from the agents pocket, it coming from the agency…but you have made me wonder so I am going to ask. And yes, I recognize that if it’s coming from the company coffers that it likely affects the actual agent I use. But again, if they are going to offer it, I am going to accept it. 

Edited August 27, 2021 by Clay Clayton

[Heidi13]

Totally agree with you Clay.

 

When I purchase a cruise for $100K+, it is a business transaction and you can guarantee I will negotiate the best T&C/pricing available to me. If it doesn't meet my expectations, I don't purchase, so the vendor/employee receives zero reward. If the employee is on 100% commission, unfortunately they receive nothing, so hopefully next time they will sharpen the pencil. Might sound tough, but that is business.

 

When purchasing minor, low value items, the available rewards are not worth the effort to negotiate, as my time is valuable and is factored into the equation.

 

With respect to our TA, they actually receive a reasonable base salary and the OBC comes from the agency's advertising budget.

[Cienfuegos]

If the travel agent feels that the client's demand is unreasonable, they can fire the client.

 

Value added goes both ways.

[ebtrip]

As a retired Travel agent I was salaried. My clients came first.  If I found a sale on a cruise they were booked on I gave the discount, without their knowledge. It always surprised them when a check was found in their docs if they had already paid the final.  The few dollars that the commission was decreased was a drop in a bucket compared to the client knowing we worked for their best interest. My clients never compared prices as I ALWAYS made sure they had the best price.  I use a travel agent for my cruise bookings.  I could navigate by myself, with 21 years of experience, but they do get the best rate and SBC.  It’s not coming out of their pockets. I had a TA for the past 14 years, but she retired last year.  It took time but now I have found someone who works as I did.  

[Jim Avery]

1 hour ago, Cienfuegos said:

If the travel agent feels that the client's demand is unreasonable, they can fire the client.

 

Value added goes both ways.

One of the best mentors I had coming along taught me the same thing.  Some time you just have to know which client to fire.

[vslparis]

The vast majority of TA these days are Independent Contractors ( vs back in the day when the vast majority were salaried ) working for a Host Agency that takes a percentage of their commission. The remainder of the commission goes to the agent and the OBC comes out that remainder and therefore out of agent’s pocket . 

 

 

[duquephart]

18 minutes ago, vslparis said:

The vast majority of TA these days are Independent Contractors ( vs back in the day when the vast majority were salaried ) working for a Host Agency that takes a percentage of their commission. The remainder of the commission goes to the agent and the OBC comes out that remainder and therefore out of agent’s pocket . 

 

 

 

The ones that hand out the max alowable must still be doing just fine.

[vslparis]

30 minutes ago, duquephart said:

 

The ones that hand out the max alowable must still be doing just fine.

I am sure that they are. I just wanted to make sure that people understand that for the most part that OBC is coming out of the agent’s pocket not the agency.  

I would also say that while getting the max OBC is a good thing, the best agent for someone may not be the one that gives that . It is easy to give OBC , it is not as easy to be a good TA who is experienced and who puts their client first .  Now if you can get all of that together , that would be ideal 😀

[Cienfuegos]

Does anyone have a good sense of how much % the OBC represents of the total paid out by Viking?

 

Is the OBC max 20%, 50%, 90% of the amount paid as commission?

[Heidi13]

2 hours ago, Cienfuegos said:

Does anyone have a good sense of how much % the OBC represents of the total paid out by Viking?

 

Is the OBC max 20%, 50%, 90% of the amount paid as commission?

 

It will vary significantly, based on length/cost of the cruise. For World Cruises of 120+ days, we get the same max OBC as a 15-day cruise, which generates significantly less commission than the WC.

 

I estimate the OBC we received for the WC is 3 - 5% of total commission.

[Cienfuegos]

Thanks. Limiting the rebate / OBC to something under 20% seems to be away to reflect the travel agent's work while not giving away the store.