If the ship is sold out...

[BlerkOne]

7 minutes ago, staceyglow said:

I didn't say Carnival won't take them back.  I said that the TA doesn't want to give them back, even if it means taking a loss on them.

I find it hard to believe a TA would rather lose money...

[staceyglow]

1 minute ago, BlerkOne said:

I find it hard to believe a TA would rather lose money...

It will lose even more money in the long run if Carnival won't sell them as many cruises going forward because they keep giving them back.  It's like losing your volume discount with a supplier because you don't buy enough.  

[BlerkOne]

3 minutes ago, staceyglow said:

It will lose even more money in the long run if Carnival won't sell them as many cruises going forward because they keep giving them back.  It's like losing your volume discount with a supplier because you don't buy enough.  

I don't think Carnival sells them anything, but allows them to put a hold on a certain number of cabins.

[Eli_6]

Interesting about the TA's putting a large number of rooms on hold.  I did not know that, but it makes sense.  Also makes sense as to how a ship can show as sold out on the Carnival website but then there be offerings through travel agency websites.  I feel like I learn so much just by lurking around on these boards...  

[Illbcruzn4life]

4 hours ago, staceyglow said:

If I am not mistaken, they don't like to give them back (assuming they are allowed to) because it may affect the number of cabins the line is willing to give them in future.  That is why you can get some crazy deals close to the cruise date. They would rather sell them at a loss than give them back to Carnival.

Another point is how can they sell them at a loss? I’m thinking you mean they are selling them super cheap and lower than what Carnival is charging? Last I heard you couldn’t sell cheaper than what Carnival is charging unless the TA is making up the difference which doesn’t seem like a good business model.

[Illbcruzn4life]

2 hours ago, Eli_6 said:

Interesting about the TA's putting a large number of rooms on hold.  I did not know that, but it makes sense.  Also makes sense as to how a ship can show as sold out on the Carnival website but then there be offerings through travel agency websites.  I feel like I learn so much just by lurking around on these boards...  

my TA does this with Royal. I always ask if she has group space on a sailing Im considering. You get the cabin cheaper if she does and the deposit is fully refundable

[cruisingguy007]

3 hours ago, Illbcruzn4life said:

Another point is how can they sell them at a loss? I’m thinking you mean they are selling them super cheap and lower than what Carnival is charging? Last I heard you couldn’t sell cheaper than what Carnival is charging unless the TA is making up the difference which doesn’t seem like a good business model.

 

I don't want to speak for stacyglow but I think she was trying to say that they sell them at less than they wanted in order to keep volume numbers up and future inventory. For example, you get 10 units on consignment and hope to sell each for $10 by a certain date, you sell eight and that date is approaching so you dump the last two at deep discounts (say $6 for giggles) in order to move inventory, thus keeping your sales unit count up but bringing the average down from $10 a unit to $9.20 a unit. This keeps the suppliers (in this case the cruise lines) happy with your volume so that they will continue to keep the volume the same and not reduce it, as they may if you try and return cabins (volume) back to them. It happens in sales all the time, suppliers don't like returns or when you make your problems theirs. 

[Illbcruzn4life]

so she sells the remaining cabins she has at a loss before final payment date and eats the difference so she can get a large quantity of cabins for other sailings. Got it.🙂

[staceyglow]

16 hours ago, cruisingguy007 said:

 

I don't want to speak for stacyglow but I think she was trying to say that they sell them at less than they wanted in order to keep volume numbers up and future inventory. For example, you get 10 units on consignment and hope to sell each for $10 by a certain date, you sell eight and that date is approaching so you dump the last two at deep discounts (say $6 for giggles) in order to move inventory, thus keeping your sales unit count up but bringing the average down from $10 a unit to $9.20 a unit. This keeps the suppliers (in this case the cruise lines) happy with your volume so that they will continue to keep the volume the same and not reduce it, as they may if you try and return cabins (volume) back to them. It happens in sales all the time, suppliers don't like returns or when you make your problems theirs. 

That is exactly the point I was trying to make.  Thanks!