Perspectives on Travel Agents - "Only The Best Are Likely To Survive"

Last night I received a most unusual, and welcome, email from CruiseMates.com; a website that I visit once in a great while. It is more of an information hub than a message board community (which also has information but mostly from its members) such as CruiseCritic.com. The CruiseMates email was entitled, "Thank Your Travel Agent". It is posted on its website and is worth a read.

It tries to succinctly explain that travel agents are under tremendous pressure in this economy because many in the cruising population are also feeling the pinch, so they cruise less often, on slightly less expensive cruises or worse: after much effort by the travel agent, are cancelling the cruises when final payments become due.

One of the points mentioned is that travel agents are paid a commission on the sale of a cruise, but not on the total cruise cost. Now, with added fuel supplements ($12 per person per day), increased taxes (ex. Alaska's $50 per person tax) and higher port charges and "NCFs" (Non-Commissionable Fares), the travel agent is earning a commission on a smaller percentage of what you are paying...which results in you potentially receiving a smaller discount than you might be expecting.

But, from the travel agent's perspective things actually get worse. The way commissions generally work is that the more the travel agent sells the higher the commission the cruise line will pay him/her. But some of the cruise lines are moving the bar, so that now travel agents have to sell more cruises, with commission earned on a lower percentage of the total cruise fare, before they earn higher commissions.

I will now add to the mix a statistic that a cruise line representative shared with me at a private lunch the other day: On average a travel agent only retains 20% of its clients for booking future cruises.

With such a lack of loyalty and the loss of the ability to discount the total cruise prices, things seem pretty bad. Is it all "gloom and doom"? Is the Perfect Storm about to strike????

To the contrary, things are looking pretty good for the best agents. Why?

I look at the posts on sites such as Cruise Critic, the growing list of other message boards, and the emails I receive asking me to post on those boards. It always makes me wonder why all of the "customers" that read the message boards just don't ask their travel agents for the information. The reason is that, in large part, they opt for purchasing the lowest cruise fare, but no or poor support. When a "customer" takes that approach there could never be any loyalty because it is the price...and only the price...that brings the client to the travel agent. (Of course it also brings the potential for problems, misunderstandings, disappointments, lost upgrade opportunities, wonderful shoreside opportunities to be lost, lesser quality tours, etc., etc., etc.)

Then there are other ways to improve the quality of a cruise experience for a client.

1. I am a member of a consortium, Ensemble Travel, which provides my clients with numerous added values including such things as negotiated discounts, complimentary shore excursions, onboard credits, complimentary spa treatments, in cabin gifts, etc.

2. If you have not been to an particular area I provide you with the latest guide book on the area as well as another gift after your final payment.

3. I provide real support and information for my clients. If you are going to Greece, I have a fantastic driver-guide. If you want to know how to see Barcelona I can tell you, in detail. I have a wealth of information Russia...including the differences between cruising on Cruise Line X vs. Y. In fact, as my map below shows, I have been to a significant majority of the ports you probably would visit on your cruise. And for those I haven't visited, I probably have input from clients that have visited them.

4. I have an excellent relationship with the cruise lines. I push for upgrades, fight for exceptions and, if necessary, rebook clients so they get the best value.

5. I am there before, during and after the cruise to address whatever the issues are...even if they are issues that I really have no responsibility for.

6. I discount and/or give added value (cruise line restrictions dependent) on literally every cruise.

As the CruiseMates article ended, so shall I, "So, let's hear it for the travel agents. If you have a good one then stick with her and make sure she always gets her commission (even if you book directly). This is one business where they really earn their money, with their knowledge, attention to detail and dedication to doing the job right. If you have a good travel agent you know it. If you don't, then it is time to shop around for a new one. Only the best are likely to survive the current economic conditions."

I Demand a Free Cruise!

I have been reading a thread on Cruise Critic about Seabourn cancelling a March 28, 2009 repositioning cruise from St. Thomas to Ft. Lauderdale. Seabourn - giving eight (8) months prior notice - has offered a 10% discount plus a $200 onboard credit. The Host chimes in immediately that the compensation sounds low and then someone declares the cancelled passenger should get a highly discounted or free cruise.

Does not providing the guest with possibly over $1,000 discount on a future cruise and a $200 onboard credit show enough concern by the line for it to have earned loyalty...or at least fend off scorn?

While I do agree that there should be some sort of compensation because the cruise was planned and, possibly, airfare was already purchased, but let's consider the normal person's "damages" worthy of compensation: Possibly a $100 air ticket change fee and some time finding an alternative cruise or vacation...and a bit of upset/disappointment at the cancellation. (Hotels, etc. can be cancelled with no penalty.)

Oh, there are the cries of the cruise line needs to promote loyalty and effectively only overcompensating someone will achieve that. There is, alas, a difference between earning loyalty and buying it. Trust me, buying it doesn't work.

Case in point: I was able to procure a group of six people a total refund plus free cruises due to a last minute issue with Seabourn. Imagine six (6) free cruises just so they could go a week later. Having pocketed the very significant sum of money, when it came time to pay for the next cruise: Cancelled. To be fair, there were understandable circumstances from the guests point of view, but Seabourn was out not only 6 fares and 6 free cruises, but 2 other fares on the guest cancelled cruise...and I was out as well; having to do far more work than expected and, obviously, making far less money.

The loyalty - when it comes to such things - almost always rests with the guest and not the company providing the services or product. For if the product or service is not in the guest's best interest, it simply is not going to be paid for. Loyalty would have the guest saying, "Gee, we got all of our money refunded, so Seabourn has effectively paid for our next cruise and then some. I am loyal to Seabourn and want to do right by it, so extenuating circumstances aside, I will take cruise rather than cancel it." To be fair, there are some that would take that approach, but they are far and few between. (Do it and see what a company like Seabourn will do for you...the ones that really show the loyalty!!!)

In the end, from my perspective, the "free cruise" demands are not about "loyalty". And it should not be about trying to extort something under the guise of loyalty. It should be about being treated fairly and respectfully...both ways.

Prinsendam Fans - An Unbelievable Deal - And You Can Only Get It Here!

For those who want to cruise on the former Seabourn Sun, Holland America has made two incredible 2008 European sailings available to me (and to very few travel agents anywhere!) on the Prinsendam which are - ready for this - AIR INCLUSIVE at cruise only rates!

Here are the details:
14 day Black Sea Cruise Rome to Piraeus
September 18, 2008 or
October 16, 2008

Civitavecchia (Rome)
At Sea
Dubrovnik, Croatia
Sarande, Albania
Argostoli, Cephalonia, Greece
At Sea
Istanbul, Turkey
Istanbul, Turkey
Trabzon, Turkey
Sochi, Russia
Sevastopol, Ukraine
Nessebur, Bulgaria
At Sea
Kusadasi (Ephesus) Turkey
Piraeus, Greece

Pricing is as follows:

Inside from: $2,299
Oceanview from: $2,499
Veranda from: $4,999
Veranda Suite from: $6.749
Deluxe Veranda Suite from: $10,499

Prices include the fuel supplement, but do not include taxes of up to $236 per person. Also, there is some limitation as to air gateway cities, with some having a $100 or $200 supplement. Obviously, restrictions apply and the offer is subject to capacity controls and/or prior sale and may be withdrawn at any time. (If you check the posted fares on the Holland America site you will see this is not a "smoke and mirrors" offer, but the real thing. )

If you are thinking about a cruise this fall, a 14 day European cruise air inclusive in an oceanview for $5,000...on the Prinsendam no less...is something you just shouldn't pass up. Call or email me quickly as this is sure not to last.