Tag Archives: commission rate

Carnival makes higher commission levels easier to reach

Posted on by
Reply

Carnival Cruise Line said it will lower the number of cruises agents have to sell to reach a higher tier in its commission structure.

The move will make it easier for agents to earn more selling Carnival and reverses a move the line made three years ago in the opposite direction.

Adolfo Perez, vice president of trade sales and marketing, said the move was his top priority since being promoted to his new job in June.

“Essentially what we’re doing is reducing each of the thresholds for each of the commission levels, so anywhere from the 11% to the 15% commission level we’ve reduced the number of sailed cabins required to hit that tier,” Perez said.

For example, agents who previously had to sell 400 cabins to earn the 15% level will now have to sell 250. To earn 14%, the threshold goes from 300 to 175.

The 13% level is now reached at 125 cabins, down from 200, while the 12% level is reached at 50 cabins, down from 100.

Small or beginning agents will need to sell 40 cabins, down from 50, to boost their commission rate to 11% from the starting rate of 10%.

Agencies already earning the top rate of 16% are unaffected. Perez said he feels the structure for those commission levels is already adequate.

In a statement, Vicky Garcia, chief operating officer of Cruise Planners of Coral Springs, Fla., said Carnival’s moves to recognize the value agents bring to the bottom line is a step in the right direction for the competitive landscape.

“It is obvious the company has reprioritized travel agent relationships and this trend should continue to keep the brand top of mind for travel agents,” she said.

P&O Cruises and Cunard raise commission

Posted on by
Reply

P&O Cruises and Cunard raise commission

P&O Cruises and Cunard are raising their commission levels from 5% to 7.5% across all products

 

An email has been sent out to agents informing them of the change, which will take place on December 9.

The email said: “Great News! As part of our commercial transformation and Agent Matters programme, we are delighted to announce that we are improving travel agent commercial terms for both P&O Cruises and Cunard.

“In recent months we have appointed a new commercial directorship team and just some of the initiatives we have implemented are to extend our Mediterranean fly cruise programme earnings which allows agents to earn commission on flight packages, we have implemented a new fare structure to support you to sell cruises earlier in the booking curve and tested various agent initiatives across the market.

“As a direct result of agent feedback and the success of the above initiatives, we have developed a new travel agent remuneration package following months of consultation with you, our trade partners. We believe travel agents are critical to our business and the new commission structure recognises the absolute value we place on travel agent partners.

“A new base rate of commission payment has been agreed, together with tailored marketing support for individual agents. A base rate of 7.5% commission will be paid to all agents for both brands from 09 December, 2013 and covers all departures from this date onwards.

“Please also join us in welcoming Jeremy McKenna to the team as our new Head of Sales. Jeremy will start on 02 January, 2014 and will lead the business efforts working with our trade partners. Jeremy brings with him a wealth of sales and commercial experience leading teams in customer centred environments and can’t wait to get started in his new role!”

Sales and distribution support director Chris Truscott said the cruise operator would also be offering tailored marketing support to individual agents as well as the commission increase.

He added:  “The new commission structure recognises the absolute value we place on agents, who are critical to our business, and is part of a much wider process of positive change for both brands.”

Complete Cruise Solution, the trade sales and marketing arm of P&O Cruises, Princess Cruises and Cunard announced plans to cut commission from 15% to 5% back in 2011.

The move was met with fierce opposition from agents. In March this year Princess increased commission on the cruise element of bookings for 2014 departures back up to 10% but at that time there was no change for P&O or Cunard.

MSC pays 5% commission on prepaid cruise activities

Posted on by
Reply

By Tom Stieghorst
MSC Divina 410MSC Cruises said it will pay 5% commission on cruise activities that cost extra, if they are prepaid and booked through a travel agent.

The line said commissionable activities include spa treatments, specialty restaurants, beverage packages and celebration packages. MSC said they are in addition to the current commissionable shore excursions, hotel packages, transfers and air. Details are at msccruiseagent.com.

Few if any other cruise lines pay commission on such items.

MSC also said it will pay 25% commission on balcony cabins on MSC Divina later this year on sailings between Aug. 2 and Dec. 20. The travel must be booked May 27 through July 31 and apply to categories B1, B2 and B3.

Also, starting June 2, agents can earn tour conductor credits for selling a certain number of FIT bookings. The credits are typically earned when booking groups, but MSC said agents to not need to block group inventory.

One tour conductor credit will be awarded for every 20 full-fare guests on the same sail date, for bookings made up to 75 days prior to departure.