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Old Jun 18, 12, 10:12 pm   #1
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What is the Fee and Booking Agency Pays CruiseCompete

Hi All

This is a specific question to those in the know:

How much does an agency pay cruisecompete?

I asked an agency to match Costco (Costco was not cruisecompete) after the res was made and they claimed the cruisecompete commissions took too much $$$ out of the deal.

THANKS
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Old Jun 19, 12, 7:42 am   #2
 
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While I have no idea what they pay, I know I got free gratuities plus a $75 on board credit from my travel agent ,so a total of $240 in goodies, so it must be a nice chunk of money.
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Old Jun 19, 12, 8:20 am   #3
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From their FAQ's

What does the service cost?

Joining CruiseCompete is free if you respond to at least 300 quote requests in your first 90 days. (As we average more than 20,000 quote requests per month, you'll have plenty to choose from). Otherwise, there is a one-time $500 membership fee.

For each booking you make, you pay a revenue share equal to 2.6% of the gross commissionable fare for the cruise. You report your bookings right in the system itself.

The fees aren't due until after the sail date, so you keep more cash in your pocket longer (especially vs. an advertising model, where you pay for the advertising today to generate commission months from now).

Your up-to-the-minute account status data will be available online. This will let you view and change the bookings you've entered, and see the amount due at the end of the month. Revenue shares are billed on the first day of the month on a credit card we keep on file for your agency.


and from the membership agreement on their website


2. Revenue shares. For every cruise or cabin sold as a result of any lead generated by Agency's use of the CruiseCompete system, Agency's will pay CruiseCompete a revenue share equal to two and six tenths percent (2.6%) of the gross commissionable amount of the cruise regardless of discounts Agency offers to customer.

3. Membership Fees. Agency will be assessed a non-refundable five hundred dollar ($500) membership fee to join the CruiseCompete service. This fee will be deferred for 90 days from the day Agency's account is set up. Should Agency enter at least three hundred (300) legitimate price quotes in response to user quote requests during that period, the membership fee will be waived.
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Old Jun 19, 12, 10:04 am   #4
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Thanks Cordelli

Appreciate the info.
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Old Jun 19, 12, 3:14 pm   #5
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So the question is ho much cruise lines are paying agents in commissions. Evidently quite a lot as I can get fares including taxes, not even net of agency OBCs, for less than the cruise line is quoting before taxes (guess they don't want to PO their distributors yet). I imagine a lot of the Cruise Compete quoters don't have bricks and mortar to pay for.
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Old Jun 19, 12, 8:21 pm   #6
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For a comparison, the traditional commission paid by hotels for travel agent bookings is 8-10% of the total room rate over all days of the stay.
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Old Jun 19, 12, 9:51 pm   #7
 
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Quote:
Originally Posted by YVR Cockroach View Post
So the question is ho much cruise lines are paying agents in commissions. Evidently quite a lot as I can get fares including taxes, not even net of agency OBCs, for less than the cruise line is quoting before taxes (guess they don't want to PO their distributors yet). I imagine a lot of the Cruise Compete quoters don't have bricks and mortar to pay for.
It's been a few years since we sailed Princess, but our TA holds some sort of higher sales status with them, which gives them better pricing, and a better commission rate. Our fares were always quite a bit less than what Princess.com or most of the cruisecompete agents quoted. Carnival and Royal Caribbean have rules against TA's selling less than what the website prices are, but that doesn't stop some from offering some sort of perqs as an enticement.
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Old Jun 20, 12, 9:02 pm   #8
 
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Interesting info. I have always reserved my cabins directly, on the cruiseline websites. Mainly because this is the one and only way I have been able to ensure that I get the exact suite I want. Agents I've tried to work with have been too ditsy/scatterbrained/disorganized/distracted to manage this in the past. And I've always had the feeling I was indeed leaving 'something on the table' and that the cruise line could perhaps reward me a little bit for saving them the commissions.
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Old Jun 21, 12, 2:30 pm   #9
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Interesting info. I have always reserved my cabins directly, on the cruiseline websites. Mainly because this is the one and only way I have been able to ensure that I get the exact suite I want. Agents I've tried to work with have been too ditsy/scatterbrained/disorganized/distracted to manage this in the past. And I've always had the feeling I was indeed leaving 'something on the table' and that the cruise line could perhaps reward me a little bit for saving them the commissions.
Many cruise lines will give you a shipboard credit if you book directly through them.

As for a TA, I've got a pretty good one that I found on FT. PM if interested. She just did the cruise we're going on now and proactively called me when she noticed the price went down after we entered the non-refundable period. Normally, that's a waste, but she noticed that the cruise had gone down so much that it was better to surrender the deposit and rebook it entirely (same cabin). She took a big hit on the commission, but guaranteed a lot of future business.

Speaking of commissions, for the average travel agent, they run in the 10%, +/- range, but there are overrides based on sales and other factors.

Mike
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Old Jun 21, 12, 8:29 pm   #10
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Quote:
Originally Posted by YVR Cockroach
So the question is ho much cruise lines are paying agents in commissions. Evidently quite a lot
Things aren't always as they seem however and it's worth noting here that cruise lines long ago chose to hide a portion of the cruise costs in what they call NCF's (NonCommissionable Fare) which as the name implies is a portion of the total cruise fare that is noncommissionable. This amount will vary by cruise line and sailing but NCF's can run as high as 25% of the total base on a shorter sailing meaning TA's aren't earning as much as it appears.
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Old Jun 22, 12, 10:47 am   #11
 
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Originally Posted by tcook052 View Post
Things aren't always as they seem however and it's worth noting here that cruise lines long ago chose to hide a portion of the cruise costs in what they call NCF's (NonCommissionable Fare) which as the name implies is a portion of the total cruise fare that is noncommissionable. This amount will vary by cruise line and sailing but NCF's can run as high as 25% of the total base on a shorter sailing meaning TA's aren't earning as much as it appears.
I noticed that on a form filed by the last brick and mortar travel agent I used. That explains why she only received $330.00 commission on a $4,400 suite.
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Old Jun 23, 12, 6:43 am   #12
 
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Quote:
Originally Posted by China Clipper View Post
Interesting info. I have always reserved my cabins directly, on the cruiseline websites. Mainly because this is the one and only way I have been able to ensure that I get the exact suite I want. Agents I've tried to work with have been too ditsy/scatterbrained/disorganized/distracted to manage this in the past. And I've always had the feeling I was indeed leaving 'something on the table' and that the cruise line could perhaps reward me a little bit for saving them the commissions.
I've used cruisecompete.com 3 times with the lowest quote coming from a different agency each time. I have never had a problem reserving a specific cabin.
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Old Jul 3, 12, 3:45 am   #13
 
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Originally Posted by YVR Cockroach View Post
So the question is ho much cruise lines are paying agents in commissions.
Wow you guys are way to low. Try a Royal +17% plus extras sometimes called TA cruise credits that can be used on the passenger or the agent can keep for themselves for various things from free trips to welcome gifts or special meals for customers.

Some companies have gone way out of their way to avoid agent advertising or giving discount with a carrot and a stick. The stick being banned selling for cruises for the company.

Did I use the word Royal before? Funny their is a NYSE company with the symbol RCL that owns quite a few cruise lines.
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Old Jul 6, 12, 1:24 am   #14
 
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Wow you guys are way to low. Try a Royal +17% plus extras sometimes called TA cruise credits that can be used on the passenger or the agent can keep for themselves for various things from free trips to welcome gifts or special meals for customers.

Some companies have gone way out of their way to avoid agent advertising or giving discount with a carrot and a stick. The stick being banned selling for cruises for the company.

Did I use the word Royal before? Funny their is a NYSE company with the symbol RCL that owns quite a few cruise lines.
Royal Caribbean and their various brands don't allow TA's to advertise prices lower than what the cruise line website displays. But that doesn't stop some TA's from giving the customer various forms of kickbacks, either through direct payment, to on board credits and dinner vouchers to the specialty restaurants.

Carnival also does this, but not across all their brands.
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Old Jul 6, 12, 3:43 pm   #15
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Quote:
Originally Posted by DanJ View Post
Royal Caribbean and their various brands don't allow TA's to advertise prices lower than what the cruise line website displays. But that doesn't stop some TA's from giving the customer various forms of kickbacks, either through direct payment, to on board credits and dinner vouchers to the specialty restaurants.

Carnival also does this, but not across all their brands.
Not anymore Canival doesn't according to a press release issued today, a portion of which I'll paste here:

Today marks an important step in Carnival's commitment to ensuring that all travel partners have the equal ability to sell the Carnival product at the same great rate. Nearly two years ago, we introduced a popular revision to our Advertised Price Policy, which ensured a level playing field for all agents. Following our 2010 policy change, we continued to hear from many partners that they saw the ongoing value-adds in the marketplace as excessive and another form of rebating and Carnival was encouraged to revisit our policy once again. We are proud to announce that effective August 1, 2012, we will take this commitment one step further by revising our value-add policy.

With this revised policy, value-add booking incentives may only be non-cash equivalent items and have a value equal to or less than USD 25 per passenger. The policy applies not only to advertising, but to all forms of communication, including in-person, phone or any other means. Our former policy allowed non cash-equivalent value-adds that were less than five percent of the Complete Cruise Fare or USD 25 (whichever was greater). In addition, it allowed for cash-equivalent value-adds that were less than 10% of the Complete Cruise Fare (with approved marketing plans).
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