Shareholder Benefit refused

[LA30]

I have just had an email from P&O refusing shareholder OBC for the half world cruise in January.  I looked at their Ts & Cs and they are quite within their rights to refuse, but I've never come across this before.  Rather disappointing.  A good job we got an excellent price in the first place!

                                    
I can confirm that we have been unable to apply your shareholder benefits to your forthcoming P&O Cruises holiday.  The process for applying for shareholder benefit includes validation, and within this part it was flagged that the promotions applied to your booking are non-combinable with shareholder benefits. You have been given a net rate discount through your travel agent, therefore with this promotion given unfortunately its not combinable. 
 

[molecrochip]

Always been the way but P&O now actually applying the rules.

[terrierjohn]

25 minutes ago, molecrochip said:

Always been the way but P&O now actually applying the rules.

What exactly is a net rate discount?

[CarlaMarie]

1 minute ago, terrierjohn said:

What exactly is a net rate discount?

 

I was about to ask the same question! What is a net rate discount and how would a passenger know they've been given one? Refusal of shareholder benefit has cropped up a few times now. 

[david63]

As I understand it a net rate discount is a special rate that is given to TAs and is typically a rate just for the cruise part of a fly cruise. The TA then puts the package together for the customer. It can also just be a special promotion by the cruise line to the TA who then pass on some of the discount to the customer.

 

It is incumbent on the TA to explain this to the customer.

[molecrochip]

A cruise can, broadly, be sold in one of two ways.

Firstly as a definitive published fare product. This is where the cruise is sold direct to you as a customer with no changes from what P&O are offering, for the advertised price. It can be sold direct or via a travel agent but if problems occur, you claim against P&O's ATOL/ABTA registration. This is not the same as an agent that agrees to give up part of their commission as cashback or a reduction on your price.

 

Secondly, a net fare product can be sold to a travel agent to be used as part of a package. The travel agent may add flights, hotels transfers etc, and then wraps the package up in their own ATOL/ABTA registration. The travel agent is now responsible for delivery of this package as a whole -  not P&O.

 

A net fare cannot be sold straight through. The second option places risk on the Travel agent hence the price is lower. The way that agents earn commission from net fare arrangement is also different.

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