Tag Archives: compensation

Royal Caribbean CEO defends agent compensation to investors

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Royal Caribbean CEO defends agent compensation to investors

By Tom Stieghorst
Royal Caribbean International CEO Adam Goldstein said he sees stability in the compensation paid to travel agents.

Asked by a Wall Street analyst to elaborate on commission strategy during Royal Caribbean Cruises Ltd.’s conference call on first-quarter earnings, Goldstein said Royal Caribbean takes pride in its travel agent relations.

_Adam Goldstein“Clearly, that relationship is predicated on us giving them competitive compensation to produce business for us,” he said. “If they don’t feel we’re giving them a fair shake on compensation, they may love us and our products, but they’re going someplace else.”

Goldstein said he doesn’t blame travel agents for asking for more compensation, nor does he blame investors for pushing for lower commission costs.

“It is our responsibility to navigate the right balance to reflect the great value they bring to the success of our business model and neither underpay nor overpay,” Goldstein said.

He said the foundations of travel agent compensation in recent years “have been much more stable than unstable.”

“It’s pretty clear what the building-block elements of travel agent compensation are, and it’s pretty clear travel agents are willing to produce good business for us with the existing components of their compensation,” Goldstein said.

Costa clarifies compensation policy for Concordia passengers

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Costa clarifies compensation policy for Concordia passengers

By Donna Tunney
Costa Cruises clarified its compensation policy for passengers who were aboard the crippled Costa Concordia, which hit a rocky reef and capsized off the Italian coast Jan. 13.

The line said it would refund the full cost of the cruise, either directly or through the passengers’ travel agencies.

It also will reimburse all travel expenses incurred both reaching the port of embarkation and on the homeward journey, including any independent arrangements made for transfers.

Additionally, onboard expenses will be refunded, any credit card charges will be credited to the account and any cash deposits will be refunded, Costa said.

Costa also will reimburse any medical expenses incurred as a result of the accident.

It said that “every effort will be made to return the valuables left in the cabin safe,” and that information on the return of personal belongings and other forms of compensation will be communicated.

The embattled cruise line came under fire in recent days after a media outlet in the U.K. mistakenly reported that Concordia passengers, who evacuated the vessel in what’s been described as a chaotic and unorganized way, were being offered only a refund and 30% off a future Costa cruise. Other media have picked up the erroneous report.

“The 30% future cruise discount, in addition to a full refund, is intended for guests [who were] scheduled to sail on Costa Concordia from Jan. 14 onward,” the line stated.