Crystal Cruises has changed their commission structure to discourage agents from stealing other agents' business by undercutting pricing.
* A Different Take on the Situation
Cruise lines aren't excited that travel agents discount their product. They want a knowledgeable and professional sales force selling their product, not ones cutting their profit to the minimum and hiring inexperienced sales people who don't stay very long. To that end, they don't want travel agents giving up significant portions of their commission just to compete with each other on price.
As we've reported in the past, several cruise lines have come out with policies meant to discourage agents from rebating and advertising discounted rates, but last Friday, Crystal came out with a unique policy to address their situation.
The discounting and rebating came to the luxury end of the market relatively late. What Crystal has noticed lately is a growing number of customers requesting to switch their bookings to a different travel agent after they are under deposit.
As they have looked into this phenomenon, what they've found is a growing number of travel agents soliciting other agents' booked customers by offering to surpass whatever discount, onboard credit or other incentive the other agent is offering if the passenger will transfer the booking to them. Of course, why not? The first agent has done all the work of finding the client, helping them select the cruise, discussed all the options and has done the booking. The vast majority of the time and expertise necessary for the booking has already been done. On most bookings there is usually a relatively minimal amount of time necessary to finish assisting the client _ usually just processing the final payment and delivering the documents. So why shouldn't the second agent be willing to work for a lot less money. Of course the first agent ends up with nothing for all the time and expertise invested.
Crystal came up with a clever solution that should put a stop to the practice, at least if the first agent has gotten as far with the customer as collecting a deposit. Effective January 1, if a customer under deposit wants to switch travel agents, they can still do it, but the new agent's commission will be capped at 10%.
The theory is that if the agent isn't making as much money in the first place, they don't have as much to discount/rebate, so the problem should be solved.
"We believe this is another step toward curbing rebating activity and we want to protect the original agent who has worked hard to service a client," said Bill Smith, Crystal's SVP of sales & marketing. "Guests are free to choose the agent or agency with whom they work. In the luxury sector, they should be evaluating service and not who is willing to buy them away from another agent because of promises of discounts or rebates."
This applies both to bookings coming from agencies, and from bookings made onboard Crystal ships. (At the time of booking onboard, passengers must designate the agency with whom they want to be the agency of record.)
Simply put, the idea is that the customer should shop for his agent first, not after the agent has invested the time with the client. Once the agent has done that, the agent should then be paid for his investment.
Previously to curb rebating, Crystal instituted a policy that they will only process credit card payments for the full amount of the booking, not a discounted amount.
This article appeared in the October 1, 2007 edition of Cruise News Daily.
Monday, October 1, 2007
Developing news
It was just announced that the US TSA (Transportation Security Administration) will subject airline passengers carrying remote controlled toys (and their remotes) to additional screening at all airports. This is effective immediately.
The toys include remote controlled cars and trucks, etc. It's reasonable to believe this procedure will soon be adopted by security at airports in other countries.
At this point, it won't affect cruise ships, but of course, a large percentage of cruise passengers fly to their port city.
The toys include remote controlled cars and trucks, etc. It's reasonable to believe this procedure will soon be adopted by security at airports in other countries.
At this point, it won't affect cruise ships, but of course, a large percentage of cruise passengers fly to their port city.
From the personnel department:
Well-known industry figure Tom Russell has joined Silversea Cruises in the new position of senior vice president of product development.
Russell brings his vast expertise to Silversea at a crucial time with Silversea just last week announcing the purchase of the expedition ship World Discoverer. Russell's primary responsibility will be the design, deployment and itinerary development for Silversea's new luxury expeditionary cruise product, although he will also coordinate a variety of major projects and initiatives across departments, according to the company.
Russell was previously part of the founding executive team of Silversea in 1992. He had wide-ranging cruise experience with Sitmar, Princess and Costa prior to joining Silversea. After leaving Silversea in 1996, his career centered on the destination-oriented part of the cruise industry in his positions with Cruise West, Society Expeditions, Holland America/Windstar, and most recent, Uniworld Grand River Cruises.
Effective October 14, Russell will be based in Silversea's Ft. Lauderdale office.
Russell brings his vast expertise to Silversea at a crucial time with Silversea just last week announcing the purchase of the expedition ship World Discoverer. Russell's primary responsibility will be the design, deployment and itinerary development for Silversea's new luxury expeditionary cruise product, although he will also coordinate a variety of major projects and initiatives across departments, according to the company.
Russell was previously part of the founding executive team of Silversea in 1992. He had wide-ranging cruise experience with Sitmar, Princess and Costa prior to joining Silversea. After leaving Silversea in 1996, his career centered on the destination-oriented part of the cruise industry in his positions with Cruise West, Society Expeditions, Holland America/Windstar, and most recent, Uniworld Grand River Cruises.
Effective October 14, Russell will be based in Silversea's Ft. Lauderdale office.
Sunday, September 30, 2007
Woman overboard from Oceana
A woman was reported missing from P&O Cruises Oceana this morning while the ship was sailing between Zeebrugge and Southampton.
The woman was last seen in her cabin about 5:45am local time. She was reported missing by her husband just before sunrise, and P&O began their standard procedures to search for a missing person which included notifying the Coast Guard.
The woman's body was later recovered from the water of the Solent between Calshott and Cowes.
The woman was last seen in her cabin about 5:45am local time. She was reported missing by her husband just before sunrise, and P&O began their standard procedures to search for a missing person which included notifying the Coast Guard.
The woman's body was later recovered from the water of the Solent between Calshott and Cowes.
From the two sides to every story department:
While Congress has focused on crimes aboard cruise ships for which they think the cruise line is to blame, there's been a story developing over the last couple of weeks that says you also have to watch out for chance encounters with your fellow passengers. A couple of weeks ago, two men literally bumped into each other on Carnival Elation on the first night of the ship's 5-night cruise from San Diego to Mexico. All accounts have the one man - a businessman from the San Diego area aboard to celebrate his 50th birthday - having had several drinks. The other man was in his early 20's and with a group of people. There was some conversation between the two, and that's where the stories begin to diverge.
Some of the stories say they had a little pleasant conversation; some say the exchange was heated. Some say the older man then threatened the younger man. Then reconverge again saying there was a minor scuffle, and the older man fell down a flight of stairs. He was unconscious and bleeding from the head when he landed at the bottom of the flight. The ship stopped at Ensenada so he could be taken to a shoreside medical facility. In line with normal procedures, the FBI was notified and the younger man was detained onboard for questioning. (No criminal charges have been filed.) The original incident was reported by the San Diego Union Tribune.
About a week later, there was a follow-up article. The older man's injuries were very serious, and he hasn't regained consciousness. The man's family has already filed a $100 million lawsuit against the younger man. Carnival was not named in the suit.
The coverage has brought forward two interesting aspects. One is that the newspaper seems to be covering this in the business section, apparently because of the man's status owning a local grocery store, and being a member of a family where many members are involved the different aspects of the local grocery industry. (It makes one wonder if it had been the younger man who was seriously injured, if the paper would have covered the incident at all.)
The other interesting thing is comment sections that have developed on that article and one two days later. They both have drawn a huge number of comments, including many from people who were there and witnessed the incident. In true Perry Mason style, the participants are clearly divided into two completely different perspectives, almost like they were at two completely different incidents. This is going to be an interesting story to watch develop for months to come, long after the cruise was over. Needless to say, no matter who ultimately proves to be at fault, we hope for the older man's best recovery.
Note: Links are valid at the time of posting.
Some of the stories say they had a little pleasant conversation; some say the exchange was heated. Some say the older man then threatened the younger man. Then reconverge again saying there was a minor scuffle, and the older man fell down a flight of stairs. He was unconscious and bleeding from the head when he landed at the bottom of the flight. The ship stopped at Ensenada so he could be taken to a shoreside medical facility. In line with normal procedures, the FBI was notified and the younger man was detained onboard for questioning. (No criminal charges have been filed.) The original incident was reported by the San Diego Union Tribune.
About a week later, there was a follow-up article. The older man's injuries were very serious, and he hasn't regained consciousness. The man's family has already filed a $100 million lawsuit against the younger man. Carnival was not named in the suit.
The coverage has brought forward two interesting aspects. One is that the newspaper seems to be covering this in the business section, apparently because of the man's status owning a local grocery store, and being a member of a family where many members are involved the different aspects of the local grocery industry. (It makes one wonder if it had been the younger man who was seriously injured, if the paper would have covered the incident at all.)
The other interesting thing is comment sections that have developed on that article and one two days later. They both have drawn a huge number of comments, including many from people who were there and witnessed the incident. In true Perry Mason style, the participants are clearly divided into two completely different perspectives, almost like they were at two completely different incidents. This is going to be an interesting story to watch develop for months to come, long after the cruise was over. Needless to say, no matter who ultimately proves to be at fault, we hope for the older man's best recovery.
Note: Links are valid at the time of posting.
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