Does Anybody Actually Pay Full Price For Their Cruise?

[stquentin]

All the ads I see list this percentage off or that percentage off which begs the question where are these prices coming from? How does one really know when they are receiving the best price????

[ldubs]

There is at least one cruise line where cabins are always offered several thousand dollars off normal "brochure prices".   😃  It has been going on so long it is laughable.  But, I'm pretty sure they wouldn't continue with the practice if it didn't work.  

 

It is pretty easy to do price comparisons.  We book if we think the price is reasonable.  Once a decent price is identified, we go to our TA and in every case, so far, get a lower price.  If the price for what we have booked goes down before final payment, then we grab the new lower price.  

 

We think we are getting  a lot of value for the cost.  Otherwise, we would not book.   Is it the "best price"?   I don't know and don't want to go crazy chasing that.  

 

 

[Flatbush Flyer]

23 minutes ago, stquentin said:

All the ads I see list this percentage off or that percentage off which begs the question where are these prices coming from? How does one really know when they are receiving the best price????

 There’s the cruise line’s published price and there’s the TA’s “bottom line” net price after subtracting the $ value of whatever else it can add to the deal. For example,

1) Group rate savings

2) Pass through (to customers) booking incentive funds from the cruiseline or the TA’s consortium

3) TA commission sharing as cash rebate or Refundable SBC

4) Cruiseline fare discount to TA with preferred status. (Quiet Sales)

5) Current published cruise line sales

6) Cruise line fare discount for passenger loyalty status.

7) Cruise line fare discount for multi-segment cruises. 

Best strategy (at least for premium/luxury lines): Book onboard and/or during cruise line sale (for their perks/guarantees). Then transfer to the right TA for their added perks. 

[GeezerCouple]

20 minutes ago, stquentin said:

All the ads I see list this percentage off or that percentage off which begs the question where are these prices coming from? How does one really know when they are receiving the best price????

 

Welcome to CruiseCritic, albeit a bit belatedly!

 

"Full Price"?

What IS this, actually??

 

For one thing, the plain published price is almost always a moving target as time goes on, depending in good part on how well that particular sailing is selling (but not always, and certainly not only for that reason).

 

And then...

- Is there some special like drinks included?

- Is there some special like drinks included, with fewer [or more!] restrictions?

- Are gratuities "included" or not?  (And what, exactly, is "included" in the "included gratuities"!?)

- Are shore excursions included?  If so, how many, and perhaps, at what price ceiling per excursion?

- Ah... laundry/dry cleaning!  Included or not?  Or maybe a certain amount included! 🙂 

- And those Specialty restaurants?  Extra charge for those, or not?  And what about extra charges for some entrees in the regular dining room?

- Room service?  Fees?

- Any private facilities you might want, such as an "adults only" spa area?

- Oh... entertainment!  Special shows included?  Extra charge per person, or depending upon something?

 

And I see that ldubs has just posted what I was saving for last:

The Official Brochure Price!

In most (all?) cases, that is complete fiction, and it's both absurd and an insult to passengers, in our view.

That's like going into the grocery store to buy, say, a box of cereal, marked at, say, $5.99, but IF there were a sign right over it showing, "Organized Listed Price:  $9.99". There isn't going to be a way to process that "$9.99" price at the cash register.  (Want to give the clerk the money and tell them to keep it themselves?  That's a separate process, not linked to the cruise line, er, grocer.)

 

Most people keep an eye on the fares, and also what is actually included!  "Children sail free!"?  Is the rate for the adults exactly the same as before?  Are other perks different?  And is anything for children "not included in that 'free' price"?

 

As long as one is not in a penalty phase for cancelling (usually occurs some weeks or months prior to sail date, depending upon line), then one could change to a "Better Fare"!  

Uh oh... that no longer includes those free drinks, or whatever!  Make SURE to do a real comparison.

 

Yes, that sounds crazy making, and it can be.

We make reservations at a price/cabin or suite level we would enjoy.  We may occasionally double check if there is a "better deal", but often whatever we read about isn't useful to us.  (For example, we aren't big drinkers, and when we do, it's going to be the pricier fine wines, which aren't included to start with.  And we rarely take large group tours, although we might organize something like a large catamaran rental and invite a few other passengers to join us.)

 

Mostly, we make reservations (ship, also airline) at a price we are comfortable with.  IF there is a "better price" later - and IF we notice it! - and IF it is possible to change (with any change fees not negating the price advantage), then we will.

 

Try not to let "getting the Very Best Deal" ruin the planning and anticipation; it may not be making a huge difference anyway.  (But it could!)

 

And do consider travel insurance.  It may be helpful to you, or not, but at least consider it.  Don't be "that guy/gal" who never realized that X or Y could end up interfering with the trip (or worse, foreign medical expenses that might need to be paid in cash before treatment begins.... yes, that can happen...).

 

Now, make a reservation for a trip you'll love and start to enjoy the planning!

"Don't let The Perfect be the enemy of The Good Enough!" 

 

GC

 

[Szt]

16 minutes ago, GeezerCouple said:

 

Welcome to CruiseCritic, albeit a bit belatedly!

 

"Full Price"?

What IS this, actually??

 

For one thing, the plain published price is almost always a moving target as time goes on, depending in good part on how well that particular sailing is selling (but not always, and certainly not only for that reason).

 

And then...

- Is there some special like drinks included?

- Is there some special like drinks included, with fewer [or more!] restrictions?

- Are gratuities "included" or not?  (And what, exactly, is "included" in the "included gratuities"!?)

- Are shore excursions included?  If so, how many, and perhaps, at what price ceiling per excursion?

- Ah... laundry/dry cleaning!  Included or not?  Or maybe a certain amount included! 🙂 

- And those Specialty restaurants?  Extra charge for those, or not?  And what about extra charges for some entrees in the regular dining room?

- Room service?  Fees?

- Any private facilities you might want, such as an "adults only" spa area?

- Oh... entertainment!  Special shows included?  Extra charge per person, or depending upon something?

 

And I see that ldubs has just posted what I was saving for last:

The Official Brochure Price!

In most (all?) cases, that is complete fiction, and it's both absurd and an insult to passengers, in our view.

That's like going into the grocery store to buy, say, a box of cereal, marked at, say, $5.99, but IF there were a sign right over it showing, "Organized Listed Price:  $9.99". There isn't going to be a way to process that "$9.99" price at the cash register.  (Want to give the clerk the money and tell them to keep it themselves?  That's a separate process, not linked to the cruise line, er, grocer.)

 

Most people keep an eye on the fares, and also what is actually included!  "Children sail free!"?  Is the rate for the adults exactly the same as before?  Are other perks different?  And is anything for children "not included in that 'free' price"?

 

As long as one is not in a penalty phase for cancelling (usually occurs some weeks or months prior to sail date, depending upon line), then one could change to a "Better Fare"!  

Uh oh... that no longer includes those free drinks, or whatever!  Make SURE to do a real comparison.

 

Yes, that sounds crazy making, and it can be.

We make reservations at a price/cabin or suite level we would enjoy.  We may occasionally double check if there is a "better deal", but often whatever we read about isn't useful to us.  (For example, we aren't big drinkers, and when we do, it's going to be the pricier fine wines, which aren't included to start with.  And we rarely take large group tours, although we might organize something like a large catamaran rental and invite a few other passengers to join us.)

 

Mostly, we make reservations (ship, also airline) at a price we are comfortable with.  IF there is a "better price" later - and IF we notice it! - and IF it is possible to change (with any change fees not negating the price advantage), then we will.

 

Try not to let "getting the Very Best Deal" ruin the planning and anticipation; it may not be making a huge difference anyway.  (But it could!)

 

And do consider travel insurance.  It may be helpful to you, or not, but at least consider it.  Don't be "that guy/gal" who never realized that X or Y could end up interfering with the trip (or worse, foreign medical expenses that might need to be paid in cash before treatment begins.... yes, that can happen...).

 

Now, make a reservation for a trip you'll love and start to enjoy the planning!

"Don't let The Perfect be the enemy of The Good Enough!" 

 

GC

 

I am so grateful for everything you said. You are spot on! I would add one thing many people don’t know about: all lines I have sailed (albeit, only 5, all middle range) offer a “base rate”. NCL calls is a sail away rate. They do not advertise this rate. It is the cruise ( plus taxes) with a guaranteed class, but not specific cabin. You can then add packages that have value for you. For example, we almost never use the shore excursion credits. It’s never enough to cover the whole excursion and only good for one person/ stateroom. We never use free or discounted air. We almost always have miles to burn. So figure out what the value of these extras are to you. 
Also, many of the included extras only come with balcony or above suites. So read carefully. 

Edited October 23, 2023 by Szt

[leaveitallbehind]

You always pay "full price" as the price charged by any TA is that which is published by the all of the mass market cruise lines. Their fares are not negotiated.  As pointed out, typically any reduction to this would be through group rate pricing or give backs from the TA's commission.

Edited October 23, 2023 by leaveitallbehind

[Flatbush Flyer]

1 hour ago, GeezerCouple said:

 

Welcome to CruiseCritic, albeit a bit belatedly!

 

"Full Price"?

What IS this, actually??

 

For one thing, the plain published price is almost always a moving target as time goes on, depending in good part on how well that particular sailing is selling (but not always, and certainly not only for that reason).

 

And then...

- Is there some special like drinks included?

- Is there some special like drinks included, with fewer [or more!] restrictions?

- Are gratuities "included" or not?  (And what, exactly, is "included" in the "included gratuities"!?)

- Are shore excursions included?  If so, how many, and perhaps, at what price ceiling per excursion?

- Ah... laundry/dry cleaning!  Included or not?  Or maybe a certain amount included! 🙂 

- And those Specialty restaurants?  Extra charge for those, or not?  And what about extra charges for some entrees in the regular dining room?

- Room service?  Fees?

- Any private facilities you might want, such as an "adults only" spa area?

- Oh... entertainment!  Special shows included?  Extra charge per person, or depending upon something?

 

And I see that ldubs has just posted what I was saving for last:

The Official Brochure Price!

In most (all?) cases, that is complete fiction, and it's both absurd and an insult to passengers, in our view.

That's like going into the grocery store to buy, say, a box of cereal, marked at, say, $5.99, but IF there were a sign right over it showing, "Organized Listed Price:  $9.99". There isn't going to be a way to process that "$9.99" price at the cash register.  (Want to give the clerk the money and tell them to keep it themselves?  That's a separate process, not linked to the cruise line, er, grocer.)

 

Most people keep an eye on the fares, and also what is actually included!  "Children sail free!"?  Is the rate for the adults exactly the same as before?  Are other perks different?  And is anything for children "not included in that 'free' price"?

 

As long as one is not in a penalty phase for cancelling (usually occurs some weeks or months prior to sail date, depending upon line), then one could change to a "Better Fare"!  

Uh oh... that no longer includes those free drinks, or whatever!  Make SURE to do a real comparison.

 

Yes, that sounds crazy making, and it can be.

We make reservations at a price/cabin or suite level we would enjoy.  We may occasionally double check if there is a "better deal", but often whatever we read about isn't useful to us.  (For example, we aren't big drinkers, and when we do, it's going to be the pricier fine wines, which aren't included to start with.  And we rarely take large group tours, although we might organize something like a large catamaran rental and invite a few other passengers to join us.)

 

Mostly, we make reservations (ship, also airline) at a price we are comfortable with.  IF there is a "better price" later - and IF we notice it! - and IF it is possible to change (with any change fees not negating the price advantage), then we will.

 

Try not to let "getting the Very Best Deal" ruin the planning and anticipation; it may not be making a huge difference anyway.  (But it could!)

 

And do consider travel insurance.  It may be helpful to you, or not, but at least consider it.  Don't be "that guy/gal" who never realized that X or Y could end up interfering with the trip (or worse, foreign medical expenses that might need to be paid in cash before treatment begins.... yes, that can happen...).

 

Now, make a reservation for a trip you'll love and start to enjoy the planning!

"Don't let The Perfect be the enemy of The Good Enough!" 

 

GC

 

In a sense, you are describing what I have long referred to as the “net daily rate” which is sll anticipated cruise costs “home door to home door” including are required and optionally desired costs (yes, that includes airfare no matter how you book it). Divide that total by the number of cruise days and you have the “net daily rate.”

It was that first comparison (years ago) between mass market and premium cruise lines that produced my “Aha” experience that led to switching to a far better “premium” product (small ships, great space and crew ratios, no crowds and no “nickel diming”, etc).

 

Do the math folks (and add the quality quotient to your bottom lines).

[lenquixote66]

There can always be a lower price than the price you believe to be the lowest.

Many years ago I was part of a group that flew from NY to Texas .The organizer of the flight told us that there would be a group rate.I never knew there was such a thing.

[Honolulu Blue]

17 hours ago, stquentin said:

All the ads I see list this percentage off or that percentage off which begs the question where are these prices coming from? How does one really know when they are receiving the best price????

As mentioned by others, there's the full retail price that some cruise lines and TAs advertise, always with a slash or X through it.  If you see a 50% or more discount "sale", it's probably off of this rate.  It's hard for me to imagine anyone actually being foolish enough to pay full retail for any cruise (I certainly have not), but I'm sure it's happened to someone, somewhere, sometime.

 

One exception to the above is charter cruises.  They usually don't fool around with BS retail rates.  The price they ask for (which is normally quite expensive) is what they expect to get.  There can some, mostly small, discounts available, along with perhaps some extra OBC thrown in.

 

About your last sentence... how do you know when you get the best price?  You really don't.  There are apps out there that constantly check prices of routes you're interested in, and that can help.  Booking early or very late probably yields the best prices - but no one can really tell which is really true, except after the fact.  Some cruise lines have advertised or unadvertised guarantees where if you find a better price for the same cabin class, they'll either give you a credit to the amount you have to pay, OBC for the voyage, or a cabin upgrade.

 

The main message here is if you want the very best price, you're going to have to do your research.

[navybankerteacher]

17 hours ago, lenquixote66 said:

There can always be a lower price than the price you believe to be the lowest.

Many years ago I was part of a group that flew from NY to Texas .The organizer of the flight told us that there would be a group rate.I never knew there was such a thing.

Very often there are special group rates - where everyone going to something like a “destination wedding “ pays a bit less than the regular fare.  Of course part of the enticement for such deals is often a very low (or  perhaps free) fare for the organizer. Strikes me as kind of cheesy when the host of such a deal profits from having guests subsidize him/her.

[Joebucks]

The real question is how many people are actually getting sales vs those who perceive they do? The public seems to have a general disregard that marketing departments exist, and what they do. It isn't their job to give away the farm, but to tickle that buying bone. Different people have different interests. Some want the discount, some want little to no deposit, some what "free stuff," some want their kids to come for "free." Most of the time, these offers really mean nothing. It's usually shifting around different buckets to get the same money in the end. 

 

Some lines have different models than others. Some think they have super secret connections to super secret deals. Some may really find this. Often in the form of some salesperson who is willing to cut into their commissions to make the sale. Some are just fooled by any offer they get.  Again, the marketing departments weren't born yesterday. They build a lot of this stuff into the price. 

 

Are there sales and deals to be had? Absolutely. I'd say the bulk of them come from goals to fill lower demand cruises. The cruise lines want to make as much as they can from each room, and that includes preventing empty rooms. As I always say, shop around. Even the absolute "best" source that people always swear by, isn't always the best deal. Also, be flexible in your times. You are far more likely to save money by planning your trip around the cheapest option vs planning your trip and then hoping for the cheapest option. 

[leaveitallbehind]

1 hour ago, navybankerteacher said:

Of course part of the enticement for such deals is often a very low (or  perhaps free) fare for the organizer. Strikes me as kind of cheesy when the host of such a deal profits from having guests subsidize him/her.

Each cruise line can be different but typically (at least with the mass market cruise lines) there are on board booking credits in the form of OBC, welcome parties, private venue events, excursions, etc., that are tiered with the number of staterooms booked that apply directly to that group.  There is also a reduced fare for each booking issued by the cruise line based on the size of the group that is usually based on blocks of 8 staterooms booked, with 8 as the typical minimum required for a group rate.

 

Also typically for every 8 staterooms booked at double occupancy, there is a one person's fare credited to the host.  This can be used as a nominal rate reduction spread across the booked staterooms or as as fare benefit to the host.  It is up to the host as to how that particular benefit is applied.  The size of the group and relationship to the host may influence that decision.

Edited October 24, 2023 by leaveitallbehind

[Szt]

1 hour ago, Joebucks said:

The real question is how many people are actually getting sales vs those who perceive they do? The public seems to have a general disregard that marketing departments exist, and what they do. It isn't their job to give away the farm, but to tickle that buying bone. Different people have different interests. Some want the discount, some want little to no deposit, some what "free stuff," some want their kids to come for "free." Most of the time, these offers really mean nothing. It's usually shifting around different buckets to get the same money in the end. 

 

Some lines have different models than others. Some think they have super secret connections to super secret deals. Some may really find this. Often in the form of some salesperson who is willing to cut into their commissions to make the sale. Some are just fooled by any offer they get.  Again, the marketing departments weren't born yesterday. They build a lot of this stuff into the price. 

 

Are there sales and deals to be had? Absolutely. I'd say the bulk of them come from goals to fill lower demand cruises. The cruise lines want to make as much as they can from each room, and that includes preventing empty rooms. As I always say, shop around. Even the absolute "best" source that people always swear by, isn't always the best deal. Also, be flexible in your times. You are far more likely to save money by planning your trip around the cheapest option vs planning your trip and then hoping for the cheapest option. 

We plan our trips around when we can use miles for the flight. And weather. 

[lenquixote66]

3 hours ago, navybankerteacher said:

Very often there are special group rates - where everyone going to something like a “destination wedding “ pays a bit less than the regular fare.  Of course part of the enticement for such deals is often a very low (or  perhaps free) fare for the organizer. Strikes me as kind of cheesy when the host of such a deal profits from having guests subsidize him/her.

I went to a school reunion in 2006 from LaGuardia to Houston Texas.We were a group of 38.Somehow the President of the schools Alumni Association was able to get a reduced rate for each person .

[ldubs]

On 10/23/2023 at 10:33 AM, leaveitallbehind said:

You always pay "full price" as the price charged by any TA is that which is published by the all of the mass market cruise lines. Their fares are not negotiated.  As pointed out, typically any reduction to this would be through group rate pricing or give backs from the TA's commission.

Wait?  If the TA discounts the fare though a give back, then the price charged by any TA isn't that published by the cruise line.   Hence, you don't always pay full price.   What am I missing here? 

[ldubs]

6 hours ago, navybankerteacher said:

Very often there are special group rates - where everyone going to something like a “destination wedding “ pays a bit less than the regular fare.  Of course part of the enticement for such deals is often a very low (or  perhaps free) fare for the organizer. Strikes me as kind of cheesy when the host of such a deal profits from having guests subsidize him/her.

Haven't seen this for awhile.  Back when one of our family/friends group got an organizer discount, it was shared around with the group.   Might have been a specialty restnt dinner, an excursion, or even money back. 

[Joebucks]

3 hours ago, lenquixote66 said:

I went to a school reunion in 2006 from LaGuardia to Houston Texas.We were a group of 38.Somehow the President of the schools Alumni Association was able to get a reduced rate for each person .

 

There have been plenty of times where I can find a rate cheaper than the "wedding block discount." Sure a discount is given off of the "sticker," but that doesn't mean that is the lowest price you can find anywhere.

 

Hotels love this business. It is obviously a great way to fill up rooms. However, it is also a great way to rent out their expensive party halls, ensure more people hang out at the bars, breakfast, etc. 

[Nebr.cruiser]

I sure hope no one pays full price, if you are talking about the brochure, undiscounted, with no perks or OBC price.  But you never know.  I am sometimes astounded at how much more some people pay than we do for cruises and quite a few other things.

 

It does take a lot of work and math to figure out the true bottom line according to what your priorities are.  For instance, we don't drink, so included drink package is a bust for us, normally.  But you have to do the numbers!  With a TA promotion we recently did get all kinds of perks, including drinks, and for some reason it was less than the cabin with minimal perks.

[leaveitallbehind]

5 hours ago, ldubs said:

Wait?  If the TA discounts the fare though a give back, then the price charged by any TA isn't that published by the cruise line.   Hence, you don't always pay full price.   What am I missing here? 

It's a matter of semantics, I guess. What I am saying is if a TA gives you back a portion of his commission, that is indeed a somewhat lower rate.  But THEY are still conveying (from your payment through them) the full published website fare to the cruise line.  Any reduction to you is coming out of their pocket - and not the cruise line, as they are still receiving the full published rate.

 

The only other reduced fare option is through group rates issued to the TA from the cruise line.  While that may not be a publicly published rate, it is the rate THEY must pay so any savings to you are a direct pass through to the cruise line.

 

Edited October 25, 2023 by leaveitallbehind

[ldubs]

3 hours ago, leaveitallbehind said:

It's a matter of semantics, I guess. What I am saying is if a TA gives you back a portion of his commission, that is indeed a somewhat lower rate.  But THEY are still conveying (from your payment through them) the full published website fare to the cruise line.  Any reduction to you is coming out of their pocket - and not the cruise line, as they are still receiving the full published rate.

 

The only other reduced fare option is through group rates issued to the TA from the cruise line.  While that may not be a publicly published rate, it is the rate THEY must pay so any savings to you are a direct pass through to the cruise line.

 

 

Thanks.  That makes sense.  I guess a "somewhat lower rate" depends on one's perspective.   We commonly see 10% or more savings using our TA.   The cruise we are leaving on in a week was closer to 15% lower than the cruise line's website.  We booked literally a few days ago.  I wonder if TAs are given an incentive for last minute bookings to fill the ship.  

 

You bring up one thing I had not thought about.  You say the TA is receiving a commission that is on top of the cruise fare as opposed to a commission that comes out of the cruise fare.   That is the only way they could rebate part of their commission and still pay the full website fare to the cruise line.  Not that it matters to my wallet, but I learned something new.  

 

I was aware of the group pricing incentives.  Additionally I have heard that high revenue producing TAs might be given preferred pricing which could be passed on to customers.  

[Flatbush Flyer]

11 hours ago, ldubs said:

Wait?  If the TA discounts the fare though a give back, then the price charged by any TA isn't that published by the cruise line.   Hence, you don't always pay full price.   What am I missing here? 

What you’re missing is a look at your credit card statement which will show the O’s debit price charged to it (usually as deposit, final payment and optional purchases) regardless of whether you book direct or via a TA (at least in the USA).

Unless it’s a conditioned fare reduction approved by O (i.e., BoB, “quiet” sale, group fare, etc.) you, as a TA customer, are paying the same fare available to folks who book direct with O.

 

The fare is the fare except in your own accounting. Any direct TA “cash rebates” are paid from the TA’s own resources (often representing a share of the commission paid to that TA). Refundable SBC from a TA likewise may come direct from a TA’s own internal resources or from OCAPP (which is pass through incentive funding from O via the TA or its TA consortium). 

[leaveitallbehind]

11 hours ago, ldubs said:

You bring up one thing I had not thought about.  You say the TA is receiving a commission that is on top of the cruise fare as opposed to a commission that comes out of the cruise fare.   That is the only way they could rebate part of their commission and still pay the full website fare to the cruise line.

Once again I may not have been clear and did not mean to imply that commissions are on top of fares - their commission DOES come out of the cruise fare. And if you book directly through the cruise line, the fare is the same amount normally charged through the TA, but the commission is just kept by the cruise line to cover their internal representative's costs.

 

It works like this with TA bookings:  you are given your fare - part of that fare is the commission to the TA - if a TA perk to you is offered, they issue it in advance from that commission amount out of their pocket - once the cruise is actually completed they receive their full commission as a rebate to the TA - that amount less whatever perk they gave you is their net earned commission, but the full fare amount to the cruise line is paid up front.  

 

What TA's will frequently do is reserve a block of rooms on a given cruise (or cruises) which results in a % discount to the full fare based on the size of the block.  This reduced fare is NOT published to the public as it is the fare provided to the TA's based on that given block.  And there will also be cruise line sponsored perks for the customer based on the block size.

 

The TA will then sell to you and me those blocked rooms individually which then will show that reduced price on their booking confirmation. With each room booked, the customer's cruise line booking confirmation will then also indicated the reduced fare.  It works the same if, as example, you want to book a group of rooms for your family, or an organization, etc. But everything else regarding the TA commission works the same as with individual bookings.

 

Edited October 25, 2023 by leaveitallbehind

[ldubs]

10 hours ago, Flatbush Flyer said:

What you’re missing is a look at your credit card statement which will show the O’s debit price charged to it (usually as deposit, final payment and optional purchases) regardless of whether you book direct or via a TA (at least in the USA).

Unless it’s a conditioned fare reduction approved by O (i.e., BoB, “quiet” sale, group fare, etc.) you, as a TA customer, are paying the same fare available to folks who book direct with O.

 

The fare is the fare except in your own accounting. Any direct TA “cash rebates” are paid from the TA’s own resources (often representing a share of the commission paid to that TA). Refundable SBC from a TA likewise may come direct from a TA’s own internal resources or from OCAPP (which is pass through incentive funding from O via the TA or its TA consortium). 

 

When I book a fare through a TA, my credit card statement shows the amount paid to the TA.  It is always less than that I would pay if booking directly with the cruise line.  If you mean by what I'm missing is I don't use "O" then you would be correct.       

[ldubs]

1 hour ago, leaveitallbehind said:

Once again I may not have been clear and did not mean to imply that commissions are on top of fares - their commission DOES come out of the cruise fare. And if you book directly through the cruise line, the fare is the same amount normally charged through the TA, but the commission is just kept by the cruise line to cover their internal representative's costs.

 

It works like this with TA bookings:  you are given your fare - part of that fare is the commission to the TA - if a TA perk to you is offered, they issue it in advance from that commission amount out of their pocket - once the cruise is actually completed they receive their full commission as a rebate to the TA - that amount less whatever perk they gave you is their net earned commission, but the full fare amount to the cruise line is paid up front.  

 

If what you say in the earlier post and these paragraphs is correct, then the TA is paying out more than they are taking in, or more likely, I am completely misunderstanding.  Let's take a $1,000 fare with a $100 commission.  If the $100 commission is coming out of the fare, as you say above, that leaves $900.  How is the TA paying the full website fare of $1,000 to the cruise line without losing their shirts?  

 

1 hour ago, leaveitallbehind said:

 

What TA's will frequently do is reserve a block of rooms on a given cruise (or cruises) which results in a % discount to the full fare based on the size of the block.  This reduced fare is NOT published to the public as it is the fare provided to the TA's based on that given block.  And there will also be cruise line sponsored perks for the customer based on the block size.

 

The TA will then sell to you and me those blocked rooms individually which then will show that reduced price on their booking confirmation. With each room booked, the customer's cruise line booking confirmation will then also indicated the reduced fare.  It works the same if, as example, you want to book a group of rooms for your family, or an organization, etc. But everything else regarding the TA commission works the same as with individual bookings.

 

 

Thanks.  We log in to our TA's website and see the discounted fares.  But we do have to log in.  They are not shown until that happens. 

[leaveitallbehind]

1 hour ago, ldubs said:

 

If what you say in the earlier post and these paragraphs is correct, then the TA is paying out more than they are taking in, or more likely, I am completely misunderstanding.  Let's take a $1,000 fare with a $100 commission.  If the $100 commission is coming out of the fare, as you say above, that leaves $900.  How is the TA paying the full website fare of $1,000 to the cruise line without losing their shirts?   

BTW I enjoy your posts!  I hope you realize that I am only trying to clarify my points when I respond - not always as clear as I would hope, I guess.

 

To your comment, no they are not paying out more than they receive.  I don't know the pricing you are getting or where you are getting it from - and that doesn't matter.  But the mass market cruise lines do not negotiate their fares with TA's - the fare you would get directly from the cruise line is the same fare they would charge through a TA.  And any non-cruise line perks or benefits further offered from them would come from their commission. How they manage that internally is up to them, I guess.

 

That being said, there are fares that the public doesn't see and ways that TA's can offer more favorable fares. The most common as I mentioned is with block pricing where a TA has typically a large number of staterooms held that then results in a lower group rate which is not published publicly. There are also incentives offered by the cruise lines to the TA such as one individual fare for every 8 staterooms booked at double occupancy from this block.  This can further reduce fares. The TA then provides this lower rate to their individual customers as their reduced rate, and you would be  booked into their block. 

 

Larger volume TA's can also receive more attractive commission rates based on their volume which can then be used towards more favorable fares and perks as give backs.

 

One last thing on fares.  The cruise line's fare to you is made up of three components:  the commissionable portion (the amount on which the TA's commission is based), the non-commissionable portion (no commission is paid on this), and the port fees and taxes.  The customer does not see that split and any fare confirmation to the customer will simply indicate the total of these two amounts as the cruise fare, with port fees and taxes separate.

 

Some TA's will juggle the numbers and advertise their cruise fare by showing only the commissionable portion, with the non-commissionable portion not indicated. This other amount will be then included in the port fees and taxes portion later as a separate fee. In this manner their fares will always appear to be lower than the published rate - and without doing direct exact booking comparisons with the cruise line it would be hard to decipher what is what. 

 

This can be further complicated if they do this with block fares, which are not published and lower to begin with. But at the end of the day, the net combined total will equal the issued cruise fare.  This is why it is always advisable to ask the TA for their full and final total invoice with your booking along with the booking confirmation from the cruse line to assure they match.

 

 

 

 

 

Edited October 25, 2023 by leaveitallbehind