Thanks tor the overview. I guess one can segment the market by at least sophisticated vs unsophisticated travellers, and those who have the time, inclination and/or knowledge to research and self-book and those who don't. The ones who will use a TA are the unsophisticated, those who don't have time, inclination and/or skills, and the unsophisticated who don't have the time, inclination and/or skills.
Why do cruise lines and hotels still pay commissions? Because it is cheaper than hiring their own staff! A TA who books a lot of given cruise line (and TAs do tend to specialize) can provide the cruise line with more bookings than a full-time staffer with employment taxes, benefits, etc.
Not that I've spoken to any cruisco's sales rep off a ship (or actually, even on one) but I get the impression that they're foreign-based and perhaps outsourced? I don't have any problem speaking to a off-short sales consultant (my only request is "here is what I want, please provide me with your best and final offer") but I imagine a large proportion of the cruiser market would find that (speaking to someone offshore with an foreign accent) abhorrent. I somehow think this is why cruisecos don't have their own sales force, even if it is just a telephone bank.
Originally Posted by
gretchendz
Of course, those who require the least hand-holding are the ones TAs are most likely to rebate some part of the commission to. Those of you doing this great--but remember the TA is probably paying 30% of whatever they give you in taxes
I'm not familiar with U.S. tax laws but won't that be a legitimate business expense/deduction? Looks like it isn't deductible for whatever reason.