Celibrity no longer allowing discounted cruises

[Luvtotrav]

Today, I booked a cruise for this Feb on the Millenium. I used Best price cruises. I asked if a couple going with us could wait untill next week to finalize. The agent told me that as of Sunday midnight, Royal Carribean and Celibrity will no longer be allowing their cruises to be discounted and that the price through the cruise discount agency and the actual cruise company will be the same. No more deals as my agent said. I wonder if anyone else has heard about this happening.

 

I personally think that if this is true, I will be inclined to go with the company who chooses to want my business the most. I have cruised several times with both of these lines and I do enjoy them, but if another line has a better deal that is comparable, I will go with that over the line that chooses to not discount the price. I think this will be very short term as these lines will find that individuals will opt to go elsewhere.

 

Well I guess we will wait and see the results.

 

Have a great week!

[kitty9]

What I think the cruise lines are doing, not only Celebrity and RCCI, but the entire Carnival fleet which includes Costa, Seabourn and all the rest, is to put the internet agencies, with their highly discounted fares, out of business. All travel agencies will now be on a level playing field when booking cruises. The best TA will be the one who can come up with creative ways to make your cruise less expensive. Those internet agencies don't go full tilt in being creative, and with this new policy the internet agencies won't be able to undercut direct booking or travel agencies.

[Richard Stein]

I have 15 cruises with Princess, 8 with HAL and 7 with Celebrity. The differences between them is slight with each having an edge in one or more areas. Price is important to me as it allows me to cruise more. If they hold their prices high I can only say after my 9/5 cruise on the Horizon, good bye Celebrity, hello Princess and HAL.

[Tatka]

I have 15 cruises with Princess, 8 with HAL and 7 with Celebrity. The differences between them is slight with each having an edge in one or more areas. Price is important to me as it allows me to cruise more. If they hold their prices high I can only say after my 9/5 cruise on the Horizon, good bye Celebrity, hello Princess and HAL.

Carnival, which owns basically every other cruise lines (Princess, HAL, Costa, Seabourn etc), is doing exactly the same, so there is no point to abandon X. ;)

[parody]

As I understand it, the new rules by Royal Caribbean, Celebrity, and Carnival Cruise Lines is that others cannot ADVERTISE lower rates. TA's etc., can discount the prices charged clients, they just can't advertise this.

[flagger]

Has anyone actually seen documentation from RCCL/Celebrity advising of this "policy". It so smells like a scam to get bookings in to meet the agencies own "quotas".

[cruisintwinsmom]

Has anyone actually seen documentation from RCCL/Celebrity advising of this "policy". It so smells like a scam to get bookings in to meet the agencies own "quotas".

On their website there is a section called "cruising power". It talks about the policy there. Mentions that rebating is hurting people or TAs or something like that and discount advertising is out the door.

 

I thought is was somewhat vague, surely they sent TAs something much more definitive.

[pbk917]

I read of this news on http://www.cruisenewsdaily.com and really became annoyed because I felt it was a monopoly. Further investigation on http://www.cruiseblogger.com states that this does not mean agents can no longer offer discounts, it means that they can't advertise the discount. I don't know who's right. We want to book the Century for July 2005 at the end of this month. The price my agent gave me is pretty good, but I need to wait until the end of the month to book it, at which point the price may go up significantly.

[flagger]

On their website there is a section called "cruising power". It talks about the policy there. Mentions that rebating is hurting people or TAs or something like that and discount advertising is out the door.

 

I thought is was somewhat vague, surely they sent TAs something much more definitive.

From CND

 

Effective August 16, travel agencies will only be allowed to advertise Royal Caribbean & Celebrity's officially endorsed rates. In other words, rebated rates or group rates or promotions that have been used to result in showing lower rates (than the current authorized rates) will not be allowed.

Nowhere do I read that this means you will pay "rack/brochure" rates if you book online.

[Marie Stevens]

They very plainly state that they (Celebrity)will accept no discounted cruises and if the agency does give one they will be fined. My agent at BPC told me that no one will be allowed to give discounts..........It remains to be seen if they will keep this in effect.

[Cruise Junky]

They very plainly state that they (Celebrity)will accept no discounted cruises and if the agency does give one they will be fined. My agent at BPC told me that no one will be allowed to give discounts..........It remains to be seen if they will keep this in effect.

 

No it doesn't....it plainly states "Advertised"...

 

Effective August 16th, 2004, any agency that advertises either Royal Caribbean or Celebrity cruises or cruisetours at any price point other than a published pricing program or contracted promotional fare will be subject to a reduction in the co-op support provided by the cruise lines and other effects such as a reduction in the base commission paid on all future cruises booked by that agency. Advertisements shall include, but not be limited to, TV, radio, newspaper, catalogs, direct mail, and all on-line vehicles such as search engines, websites, e-mail, pop ups, and banners. Our existing marketing policies with respect to group bookings will remain, for the time being, unchanged.

 

One of the on-line agencies that a lot of people use on this board already have a policy on this, it will have to "Advertise" the cruise line's cost... but it will give you "Value Added Dollars" to offset this price. You can take these off the price you pay, off a future cruise or at a 10% loss in the form of a cheque.

[Luvtotrav]

I just realized that there is another thread similar to this one. I apologize for starting another. Be sure to read the other. Very informative and helpful.

[theawesome1]

I thought it was illegal? This sure fits the Ipod & Sony suits of same price whereever you buy. I was told on both during a Secret Shop that even HH Greg cannot discount them or they lose the account. So what gives?

[tuggers]

As a very frequent cruiser, will there be any way I can afford to keep cruising with X? This year I've done 5 cruises with 3 more booked, all single, so I'm already paying 200%. With no discounts, I'm really taxed! Is there any help for me?

[tbelian]

I understand the written policy is unclear and the threads are revealing much confusion. The Agent community is also confused as a whole and we all require additional information from RCL/CXC

 

As Executive Director of Best Price Cruises, I have personally spoken to many SENIOR executives at the cruise line as well as attended a previously scheduled agent meeting in Ft. Lauderdale yesterday. The policy is that NO REBATING of any kind wil be allowed beginning Monday August 16th, including by email & telephone.

 

The following two written statements are just the beginning of future policy memorandums:

 

1. What about cash back offers or upgrades, or if any agency wants to use

their commission for a value add and not lower their rate?

 

Only promotions that are driven by RCL are permitted to be advertised.

Agencies using commission to fund other offers will be in violation of our

policy. (other than GAP) Note: GAP relates to selling of group space.

 

2. What about rebating in the calls centers and over the phone?

 

We will monitor agencies and will not permit agencies to promote, "Call us

for lower Celebrity or Royal Caribbean rates, or specific sailing's, or

specific categories." We will do mystery calls and police this practice

Note: this was clarified further to say that NO rebating will be allowed. (Carnival's new policy DOES allow "secret" rebating between agent & consumer - RCL/CXC does NOT)

 

 

A Thrid Policy clarification was the focus of yesterdays discussion of this topic:

 

It says: "Added-value must not represent a hard dollar value"

 

A the Q & A that followed, led by senior RCI executives including Richard Fain, CEO, (there were over 100 agents present) the following was considered "hard dollars"

 

1. Shipboard credit offers by Agents

2. Cash Rebates

3. Dollars off or Agency dollars that are invoicing or payment credits

 

Other items are in process of being determined & clarified. I believe we will all have additional information in the coming week.

 

To conclude, Best Price Cruises is not misleading you. We felt it our responsibility to inform our customers of the appropiate information in a timely nature.

 

We do not normally review or participate in these boards, we have however decided to respond in an effort to assist everyone with a further clarification of a confusing issue that we believe requires additional written policy from RCL/CXC.

 

Regards,

 

Ron Russo

Executive Director

 

The watchword for ANYONE buying ANYTHING is buyer beware. Buyers (read customers) always have to be vigilant for their own protection. To say what 'you' have been privvy to in 'private' meetings or conversations is heresay. We as consumers will have to take the responsibility for deciding whether or not we are getting the deal we want for our cruise. This has been a huge flap, and the ink is not yet dry. I suggest a 'wait and see' position until you are ready to actually book a cruise. At that point, use your own best judgement. Everyone (including tha TA) has a vested interest in protecting their position on this matter. It is churning the waters to complain 'look what big bad RCCL or big bad carnival' is doing to us!".

[Ships R Great]

Gail, it looks like we are all going to have to pay more. I guess my future cruising days are over. I just hope when the dust settles, someone will have realized this is not going to get them the $ they hoped for and step back a little.

[tuggers]

My question remains: Do you see anyway for us frequent cruisers who have relied on the discounts to be able to continue to sail with X? I travel single so already pay 200%, This year am doing 8 cruises. Any help for me?

[tbelian]

I wouldn't consider a meeting of 100 travel agents heresay.

The use of the info is up to you.

 

We only attempted to clarify.

 

Regards

 

 

I was not there, we (cruise critic members) were not there. Neither can we verify 'who' makes the post(s).

 

That defines heresay.

[TWOFERTWO]

August 6, 2004 - Royal Caribbean International® and Celebrity Cruises® Announce Policy Change

 

"Royal Caribbean has always believed that our agency partners work hard for their commissions and should keep them", said Jack Williams, President and COO of Royal Caribbean International and Celebrity Cruises. As part of our 2005 planning process, we are reviewing everything from compensation to group policies to our new dedicated sales coverage. Rebating is damaging to our distribution system and by taking these policy actions, we believe significant improvements for our travel agency partners and our guests will be achieved".

 

Effective August 16th, 2004, any agency that advertises either Royal Caribbean or Celebrity cruises or cruisetours at any price point other than a published pricing program or contracted promotional fare will be subject to a reduction in the co-op support provided by the cruise lines and other effects such as a reduction in the base commission paid on all future cruises booked by that agency. Advertisements shall include, but not be limited to, TV, radio, newspaper, catalogs, direct mail, and all on-line vehicles such as search engines, websites, e-mail, pop ups, and banners. Our existing marketing policies with respect to group bookings will remain, for the time being, unchanged.

We does it say in this press release, by RRCL, that my TA can't book a cruise for me at a price less than what Celebrity or RC price point. If it this release says that, please explain it to me.

 

I have copied and pasted this on one other thread, that was started several days ago. There are at least three other threads , past, that have talked about this same press release. Some posts are blataint misstatements and quotes of the press release. The one that I have posted here and on the other thread, is straight from Celebrity web site. The confusion is in the interpretation.

 

There will no doubt, be more coming out after the "Aug. 16th" deadline, as of now, I say we will still be getting cruise prices for less than X and RC's 'priceline'. IMHO

[tbelian]

Remember that more info is to follow from the cruise line.

 

This is exactly why my other post on this stated:

 

"I suggest a 'wait and see' position until you are ready to actually book a cruise. "

 

I don't think it is advisable to respond to any assumptions at this point until 'the rest of the story' is told. Until I actually go to book my cruise dot com (a fictional name, possible, one that i made up, but it may really exist).. and price a cruise, AFTER august 16, EVERYTHING else is just conjecture.

 

Let's all calm down and wait and see.

[Hilary]

I guess the bottom line for me is that if I have to pay Celebrity's brochure/website prices, I'll be choosing land vacations over cruises. My husband and I take 2 major vacations a year, one being a land vacation to our timeshare in Maui, the other is either a cruise or land vacation. We can get outstanding deals on condos around the world through our timeshare, but so far the amount spent on those has been comparable to a well priced cruise.

 

I believe that unless RCI (and Carnival) changes their pricing structure and they insist on not allowing any discounting or rebate programs by TA's, they will see a significant drop in their cruise customer base. Interesting that they are planning to put a mega-ship into service in the next couple of years....wonder if they'll be able to sell berths.

[flagger]

I guess the bottom line for me is that if I have to pay Celebrity's brochure/website prices,

Where in that "release" does it say you HAVE To pay X's brochure/website prices. Typically there are prices that are lower than the published rate available to any TA.

[oceanbear]

Hillary,

I agree. There are other vacation options avatilable! If cruise lines want to "effectively" raise the cost to the consumer, by not allowing discounting or rebating, then we have the choice of taking other vacations. In fact, that is the only weapon a consumer really can weild against any company; don't buy their product! It will be interesting to see how they will fill their increasing number of cabins, if they loose a significant number of loyal cruise clients.

[Giorgi-one]

I have not read all the memos on these two threads, so someone else may have the same response as I have. The consumer always has the ultimate power when it comes to price. Unfortunately, we don't take advantage of this. For example, most people will agree that $80 to go to a football game is ridiculous. If we all refused to pay that price and stopped going, tickets would be $10 tomorrow. Since most people do only one or two cruises a year, all we have to do is try a different vacation for one year and the cruise lines will be giving away cruises like Santa Claus. There are some great all-inclusives out there, a week in Italy, etc. I have always wanted to try these vacations anyway, so now I will have a good reason not to cruise. It doesn't take a whole lot of people not cruising to get results. Remember every empty cabins means no tipping, no casino, no excursions, etc. Just have a little guts and stop being led like sheep!

[fredhanson]

According to an article in today's Wall Street Journal, Carnival will be doing the same thing, but beginnnig on January 1. On the other hand, note the following quote from that article.

 

Robert Dickinson, president and chief executive of Carnival, the cruise industry's largest operator, acknowledges that his company can't entirely stop travel agents from rolling out the discounts. "What happens between two consenting adults outside of public media, as long as it's not advertised, we're fine with that," he says in an interview.

 

Wouldn't the same apply to RCL/X?