Sales Commission

[VegasPier]

Could someone in the know please tell me what Princess pays in sales commisson to their independent travel agents.

 

Thanks, VegasPier

[WeBeGone]

It depends on the volume of business an agency does with Princess. Commissions can vary from 3% to 20%.

[lvtotrvl1]

Not sure why this information would be important to someone other than a TA?

[Toto2Kansas]

Not sure why this information would be important to someone other than a TA?

I am going to guess at this one. Because Princess still allows TA's to discount, the larger volume TA's would probably have the better pricing as they have more room to discount the rates. One other reason why there are so many different prices out there for the same stateroom, same date, same ship.

 

The TA I used to use always had the best Princess pricing around (god rest her sole, she is gone, now and I still miss her). She was one of the top sellers of Princess cruises in the U.S. therefore she was able to give a deeper discount than any others I found.

[WeBeGone]

As usual, Toto hits it right on the head.

[lvtotrvl1]

I understand that...so a TA should discount their commission for a sale? I've been in the business for a long time, and customer service is what brings people back .

 

The OP specifically mentioned Independent TA's...they can be working on their own, or affiliated with a larger host agency. I still don't know why the commission amount is really anyones business. Do people ask how much you earn to try to get a discount of your services if you make more than what they think you should?

 

Sorry..must be a mood I'm in today:eek: ..but that's my 2 cents...

[Toto2Kansas]

I understand that...so a TA should discount their commission for a sale? I've been in the business for a long time, and customer service is what brings people back .

 

The OP specifically mentioned Independent TA's...they can be working on their own, or affiliated with a larger host agency. I still don't know why the commission amount is really anyones business. Do people ask how much you earn to try to get a discount of your services if you make more than what they think you should?

 

Sorry..must be a mood I'm in today:eek: ..but that's my 2 cents...

 

For us, it isn't the actual customer service we are after, but the best prices available. Usually, our only contact we make with a TA is to tell them the ship, sailing date, and stateroom number we want to book. After that, we rarely contact the TA again except to authorize final payment.

Newer cruisers might need questions answered and this works out very well with great customer service, but for us, the best price is all we need as I can't think of a question I would need or a service that I would need provided by a Travel Agent. Therefore, the best price is what we are looking for. We would book direct if that is where the best prices were, but they are not, they always seem to be the highest prices around.

[Druke I]

I do not understand what seems to be an obsession by some to know what others earn.

 

I don't beleive salaries/commissions should be made part of the public record.

[WeBeGone]

I do not understand what seems to be an obsession by some to know what others earn. I don't beleive salaries/commissions should be made part of the public record.

 

You've missed the point. Go back and read Toto's first post. If you want the biggest discount, go with a large agency that you might assume gets a large commission. They have more wiggle room. It's hard to discount 10% if you only get 3% commission. It's easy to discount 15% when you get 20% commission.

[Druke I]

I got Toto's point.

 

There is a difference betweeen commission earned, and discount given. I maintain that the commission is a private matter, and not public record.

[PescadoAmarillo]

hard to discount 10% if you only get 3% commission. It's easy to discount 15% when you get 20% commission.

 

I don't think Princess commissions vary quite that much. For most agencies, they are more like 10% to 16%. Most of the difference in cruise fares comes not from TA's rebating their commissions, but from TA's being large enough to book group space on each and every sailing.

[Bob Winters]

I am another person who agrees with Toto. In my situation, after trying to figure out why everyone had a different price, I found a very sweet lady in Texas, I am in California who I explained that I go on a lot of cruises and my extremely large family along with my friends all come to me for their best deal. I told my gal in TX about this and asked her to give me the best prices that she possibly can and I will give her lots of business. I do this out of enjoyment and not for any financial gains. I do periodically double check my lady and she is always, always always the best. In fact if the price drops, she gives us a refund.

My final word is that in this day and age, you need to fight for your best deals. Why should I spend more money that the cabin next door?

My two cents.

Bob

[WeBeGone]

I got Toto's point.

 

There is a difference betweeen commission earned, and discount given. I maintain that the commission is a private matter, and not public record.

 

Commissions are not public record. Whatever gave you that idea? I was giving an industry range. A higher commission means someone has been working their butt off to book more than others, thus are rewarded with a higher commission. I doubt if any individual agent would ever tell you their commission

[lvtotrvl1]

You've missed the point. Go back and read Toto's first post. If you want the biggest discount, go with a large agency that you might assume gets a large commission. They have more wiggle room. It's hard to discount 10% if you only get 3% commission. It's easy to discount 15% when you get 20% commission.

 

So it is OK to take someone's pay because they make more than someone else? Bottom line..commission is the pay received for providing a service.

An average cruise price (commissionable) is 2000.00..at 10% commission the agency or agent will earn..$200.00. 16% will earn 320.00. This covers expenses, overhead, taxes, insurance etc....not alot to live off.

[WeBeGone]

So it is OK to take someone's pay because they make more than someone else? Bottom line..commission is the pay received for providing a service.

An average cruise price (commissionable) is 2000.00..at 10% commission the agency or agent will earn..$200.00. 16% will earn 320.00. This covers expenses, overhead, taxes, insurance etc....not alot to live off.

 

Nope-commission is pay from the cruise line received for booking a cruise. If I as an agent want to give it all away to a client, it's my choice. Agents routinely make huge discounts for the repeat clients. I'd rather deeply discount a person who books 2 or 3 cruises a year than discount the once in a blue moon cruiser.

[lvtotrvl1]

Nope-commission is pay from the cruise line received for booking a cruise.

 

Which is a service to the client...It is STILL the agents pay. No matter how you would like to categorize it.

 

If I as an agent want to give it all away to a client, it's my choice. Agents routinely make huge discounts for the repeat clients. I'd rather deeply discount a person who books 2 or 3 cruises a year than discount the once in a blue moon cruiser.

 

And alot of agents do that for repeat business. However I wouldn't say "deeply discount"....I'd like to be in business next year for the repeat business...not chance it by trying to give away the store...

[WeBeGone]

And alot of agents do that for repeat business. However I wouldn't say "deeply discount"....I'd like to be in business next year for the repeat business...not chance it by trying to give away the store...

 

With Princess, Cunard, and Carnival the only ones left that we can discount, you'd have to be a pretty poor agent to go out of business by discounting Princess. .....and I'm done with this discussion.

[lvtotrvl1]

With Princess, Cunard, and Carnival the only ones left that we can discount, you'd have to be a pretty poor agent to go out of business by discounting Princess. .....and I'm done with this discussion.

 

As a manager of an agency, I really find it hard to believe that you stand behind discounting as much as you seem. I am speaking of discounting across the board, not only with Princess. Princess is only a small part of a large agencies business. I've been in the business over 13 years (and also work for a large online agency) who does not believe in discounting , and have not had to resort to discounting anything for business....and I am doing fine. Actually repeat business is so good, I don't have to rely on new business ...

[Ethel5]

Toto-I miss her too! She was a gem.

 

Anyway, it was explained to me that top sellers of Princess cruises are granted "IXL" status and make a commission of 17%. These agents must earn this status every year-it's not just given to them. Then these high volume TAs are allowed to get group space and points toward gifts and OBC to their clients.

[Colo Cruiser]

I do not understand what seems to be an obsession by some to know what others earn.

 

I don't beleive salaries/commissions should be made part of the public record.

 

 

Well since we are on this point, what is the markup for a gallon of Princess cruise fuel when the ship is stationary?? :o

[bhopal21]

Well since we are on this point, what is the markup for a gallon of Princess cruise fuel when the ship is stationary?? :o

 

I think it is a double shot:confused: Oh wait, wrong liquid:o

 

Mike:)

[Griff4AU]

As a manager of an agency, I really find it hard to believe that you stand behind discounting as much as you seem. I am speaking of discounting across the board, not only with Princess. Princess is only a small part of a large agencies business. I've been in the business over 13 years (and also work for a large online agency) who does not believe in discounting , and have not had to resort to discounting anything for business....and I am doing fine. Actually repeat business is so good, I don't have to rely on new business ...

Respectfully, you are missing the point (whether you agree or disagree with their thinking).

 

I am glad you are doing well. But if you feel you don't have to rely on new business, then you are not doing exceptionally well. Or at least not doing as well as you can. Don't need to rely on new business? Well, there are others who are stiving to take your business away.

 

I would rather make two sales that earn 15% than one sale at 20%. Many retailers of many different industries now realize this. Internet retailing has taken off. Oh, has anyone ever shopped at WalMart? Smaller profits per unit, and a larger number of transactions, drives a lot of very successful businesses. I'm not sure it's necessary in this industry as the customer base is more finite. However I do price shop and have my favorite TA (who happens to be large, with great service and free Sabatinis evey cruise) try match the pricing.

 

I am happy to pay for service. And my TA can't always match pricing, yet I always book with her. However I'm not in the practice of tossing money away, either.

[VegasPier]

Not sure why this information would be important to someone other than a TA?

 

It’s important to me because I’m contemplating legal action.

 

Why do you want to hide your compensation? Don’t you expect to know what the Doctor, Lawyer, Real Estate Agent, etc… charge you?

 

Vegaspier

[Pam in CA]

For us, it isn't the actual customer service we are after, but the best prices available. Usually, our only contact we make with a TA is to tell them the ship, sailing date, and stateroom number we want to book. After that, we rarely contact the TA again except to authorize final payment.

I agree with Toto and probably use the same TA. I don't need a lot of hand-holding as I know what I want and my TA knows what I want. My TA has the best prices around for Princess. On the other hand, my sister and BIL like to have someone handle everything, including filling out their PIF and/or filling out all visa applications, which is their choice. FYI, I use a different TA for my other cruises, i.e., HAL and Viking but here again, I just tell them what I want.

 

It doesn't matter to me what their commission is; all I care about is the bottom line, i.e., what is it going to cost me.

[lvtotrvl1]

It’s important to me because I’m contemplating legal action.

 

Why do you want to hide your compensation? Don’t you expect to know what the Doctor, Lawyer, Real Estate Agent, etc… charge you?

 

Vegaspier

 

I know what they charge me...I don't care how much they make.. The agent is not charging you anything (some may charge a service fee, or cxl fee). Back to my original statement. I don't see how a commission would come into play with a lawsuit.