What is the Fee and Booking Agency Pays CruiseCompete
Jul 7, 2012, 12:57 am
#16
Join Date: Feb 2005
Location: London, Ontario
Posts: 5,210
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).
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).
Sounds good for TA's and bad for customers. Although I have to say I wasn't aware that their old policy allowed for such a large amount of "incentives". Do you happen to know what Royal Caribbean's official policy is?
Jul 8, 2012, 9:18 pm
#17
A FlyerTalk Posting Legend
Join Date: May 2002
Location: YEG
Programs: HH Silver
Posts: 56,449
Not necessarily. Consumers not as net savy will now benefit from knowing they aren`t going to get beat on price by some online discounter rebating some of their commission.
Airlines started this trend several years ago virtually eliminating the gap between their `published` fares and what consolidators were allowed to sell in a bid to drive more traffic to their own sites and making selling anciliary products (seat assign, buy-on board meals, lounge access, etc) much easier. Canival driving more of its business to direct sales channels also in the long run isn`t good for TA`s so what TA`s gain in a level playing field without massive discounting they will likely lose in more bookings going directly to Carnival.
RCL & Celebrity also has banned rebating, advertising or otherwise selling below direct pricing.
Airlines started this trend several years ago virtually eliminating the gap between their `published` fares and what consolidators were allowed to sell in a bid to drive more traffic to their own sites and making selling anciliary products (seat assign, buy-on board meals, lounge access, etc) much easier. Canival driving more of its business to direct sales channels also in the long run isn`t good for TA`s so what TA`s gain in a level playing field without massive discounting they will likely lose in more bookings going directly to Carnival.
Although I have to say I wasn't aware that their old policy allowed for such a large amount of "incentives". Do you happen to know what Royal Caribbean's official policy is?
Jul 12, 2012, 8:36 am
#18
Join Date: Dec 2008
Location: Bay Area, CA
Posts: 10
Sounds as if there will be no point in a consumer booking with a TA anymore if the price offered by all TA's is the same as what is advertised on Carnival's website. Why deal with a 'middleman' if there is no incentive?
Jul 12, 2012, 10:10 pm
#19
Join Date: Feb 2005
Location: London, Ontario
Posts: 5,210
Well, for me, and as I said in the Carnival thread, I like knowing part of my money is staying in my community. If Carnival would like me to cut out the middleman, then they can provide me an incentive to do so.