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Cruise lines have unavoidably taken to discounting in order to fill their ships—inescapable due to current economic conditions, which are deflating customer demand and understandably so. Fortunately for the cruise lines, unlike hotels, deep discounting doesn’t have to be a death knell, as much of a cruise line’s profits are generated from onboard spend.
Many of our readers have voiced their opinion by voting in our recent poll on deep cruise line discounts, and several others have shared their comments on our website as well.
Carol Le-Bert, MCC wrote:
I feel rather than discounting the cruises and spoiling the consumer for future business, the cruise lines should eliminate fuel surcharge immediately (not beginning 2010). This would save all of us from diluting our revenue. Also offer other value-added in lieu of discounting.
Kenneth Chow, ACC added:
Besides the deep cruise line discounts, you are talking the average online order-taking cruise agencies doing heavy rebating to confuse the entire public. When the cruise lines are going to curb off the cash, onboard, value-added rebates when most of these average agencies are causing these confusion on what is the legitimate cruise price of a product. I know most average online cruise agencies do not really produce the 000 millions annually.
Right now, I decided to do this part time and sell 7 nights or longer cruise for individual cruises and group cruise for 3 and 4 nights are required to have 16 double cabins to stay in business and provide personalized support.
Curb the rebating tactics and encourage better and fair cruise line pricing.
Jerry Nykamp commented:
I think they have to discount to keep the ships full during trying times. I also think they should adjust their published prices downward. Some of my clients wonder what's wrong with a cruise if it is discounted so much. Even during good times, the regular retail pricing is way too high. You know, I know, and most important, the client knows that the published price is never paid. It appears to be a big sham.
Pat Martel noted:
I think that the discounts that online booking "agencies" offer the clients and the ridiculous slashing of prices not by the cruise line but by these agencies have eroded the integrity of the product.
Ken Johnson posted:
The discounts are bad but even worse for the agents. A 4 day cruise from NCL now has a commission of 90 cents per person. We cannot live on $1.80 per booking. Now on some dates they do offer a bonus of $25.00 to the agent which is good but the commissions need to be also on the fuel charges and the taxes and fees so we can make a living.
What are your thoughts on cruise line discounts and how they affect the industry? Please share your thoughts by posting comments below.
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Being here in Hawaii I know 1st hand what discounting can or can not do to filling a ship as we will have lost over 200,000 psseengers this year with NCL pulling out 2 of its ships. Granted they were offering great prices to fill them but to loose 200K + passengers to the economy...OUCH, OUCH and more OUCH!.
if an advertised price shows $1,000.00 but wait call and ask for our 30% or more discount any "intelligent travelr" will know something is not kosher with the advertised price.
Like the hotels here are not filling rooms so the old "kama'aina rates" have beome a factor once again/
Today's traveler or any shopper is looking for deals and will search to find one.
The cruiselines want us to book our clients early and then they reduce the rates which reduces our commission. I believe that our commission should be based on the initial booking rate and if they reduce the rates on a deposited booked sailing our commission should not change. Cruiselines don't allow agents to discount but they are doing exactly that!!
Reduce the discount and add more value. That way, us agents can make a living. Stop the fuel surcharge (which is non commissionable) and only if necessary, add to the price. Also, commission agents who presell excursions.
When the cruise lines doing their heavy discounting, I market only 6 nights or longer cruises for individual reservations to maintain my service and business survival regardless what promotions they are running with the exception for some repositioning cruises.
A week long cruise is getting more money for the clients in the long run.
For any groups for 3 to 4 nights, I set at 16 double cabins as the minimum to book with us. 5 nights or more cruises, I set it a 8 double cabins.
Some agencies out there do make plenty of mistakes by rebating and 2008 is where I heard a few online agencies being consolidated into a whole larger agency because they cannot survive the razor-thin margin.
The best thing is to find your best client and ask them for referrals.
Of course cruise discounting deludes,not only our commissions but deminish's the integrity of the cruise lines themselves.However if you look at what is being discounted by the cruise lines, it is sailings that would probably never be full to capicity anyway. And how could we do away with these "online" cruise shops?How do they stay in business?
I certainly don't think it is fair to the hard-working agent to do as we are told by cruise lines to book far ahead for best rates, dates, cabin, etc. then two weeks prior to sailing put on a big discount that just makes us look silly. Even worse when they apply it to "new bookings only". Unless it is a group or an upscale booking it is hardly worth the trouble any more. Frankly, escorted tours are looking better and better.
Travel Agent's cruise section covers the latest news in the cruise industry, provides cruise deal and fam cruise information. From profiles of the trends and people of the cruise market to following river cruising and ocean cruising through our cruise blogs and stories, agents receive the information and details they need about cruises.
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