MSC Cruises to increase shore excursion commission

MSC Cruises to increase shore excursion commissionMSC Cruises is increasing commission on shore excursions to a minimum of 10% to encourage agents to book tours directly, instead of using third-party suppliers.

The line currently offers 5% commission on excursions, but within the next month – when MSC unveils its new booking platform – the line will begin a six-month pilot to test whether shore excursion booking volumes increase with a rise in commission.

Agents will earn the same amount of commission on cruise bookings and excursions. The base commission rate is 10%, so agents on that rate will earn the same on excursions.

The line made the announcement at an event in London this evening where it also unveiled its new bookings system for agents, MSC Book.

Executive director Giles Hawke (pictured) said agents were booking through third-party companies such as Attraction World and Cruisingexcursions.co.uk because they could earn more. But he argued that increasing commission would give agents the chance to make more money with MSC.

“This is a way of agents earning more money and we want to see if an increased amount makes a difference – if it does, then we will keep it going.”

Hawke said the new commission structure had been the result of agent feedback.

“There are companies who are just selling excursions and the fact we pay some commission recognises the importance of agents. They are proactively selling the products of these cruise excursion companies and if it is because they can earn money, then we’ll give them the opportunity to earn more so they can sell our cruise excursions.”

MSC also announced it was planning to double its UK sales team to 10 by January, as well as having a further team of 20 on the road promoting the line to agents.

The line is working with former Barrhead Travel director Trevor Davis and his marketing and support company 3For, which is creating a 20-strong field team of ‘MSC Ambassadors’ to train agents nationwide three or four times a year.

The new sales team and the increased commission on shore excursion, together with better account management and a consistent message on deals and pricing, are part of MSC’s ‘Serving You’ campaign, which aims to ensure agents can easily access all they need to book.

Hawke said plans were in place to help the line achieve 200,000 passengers from the UK by 2017 when he expects a ship to return to offer ex-UK sailings. He added that if agents show their support earlier there is a chance they a ship could return a year earlier.

P&O Cruises and Cunard raise commission

P&O Cruises and Cunard raise commission

 

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

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.