CCS moots upfront commission payments for cruise sales

CCS moots upfront commission payments for cruise sales

By Melanie Hall

CCS moots upfront commission payments for cruise salesCarnival UK has revealed it is considering bringing forward commission payments to the time of booking rather than when the final balance is paid.

Giles Hawke (pictured), Carnival sales and customer services director, said the company was looking at revising its systems to implement the move.

However, he added: “I wouldn’t want to set any time scale.”

Hawke was speaking at a cruise round-table debate hosted by Travel Weekly and Carnival UK. Senior agency and tour operator figures at the event welcomed the potential move.

Chris Roe, sales and distribution director at Virgin Holidays, said receiving the commission upfront would make a “100% difference” to his business.

Miles Morgan, founder of Miles Morgan Travel, said: “It’s a step in the right direction from CCS for a change.”

The suggestion followed a discussion about agents being forced to pass customer payments straight to the cruise lines, which hits agencies’ cashflow.

Last year, Complete Cruise Solution, the trade arm for P&O Cruises, Cunard and Princess Cruises, contacted all larger agents whose customers are not yet paying its cruise lines directly to insist a plan is put in place to make the transition to direct payments, to remove any financial risk from its trade business.

“We have seen the collapse of Gill’s and Cruise Control,” said Roe.

“I can see why CCS is doing it, but it is tarring every agent and tour operator with the same brush.”

Hawke said that the company had a ‘bad-debt’ fund worth millions of pounds in case retailers went bust, 
but CCS had made a decision that it 
was not going to carry that financial 
risk any more. “No banks would give you cash for nothing,” said Hawke.

But Seamus Conlon, managing director of Cruise.co.uk, said: “The average agent has to pay staff. I’m increasing cashflow to create your deposits, which you then bank for a year. CCS is screwing up everyone’s income.”

CCS cut base commission to 5% in 2011, sparking cuts by other cruise lines.

Cunard Gratuity Charges

Information Update
Cunard Gratuity Charges

It has been some time since we have increased the amount we charge our guests on a daily basis for gratuities.  We have benchmarked our own charges against many other leading cruise lines and are confident that by applying a small increase we will not be out of line.  At the same time – and very importantly – this will increase the amount we collect from our guests to be shared amongst those crew on board who earn gratuities.

As such, we will be increasing our existing gratuities as follows:-

Britannia Staterooms:  increasing from US$11 to US$11.50 per person per day
Princess Grill and Queens Grill Suites: increasing from US$13 to US$13.50 per person per day

This increase will take effect from all voyages post World and Exotic Voyages 2013 and will begin from the following voyages:-

Queen Elizabeth : Q308 – Iberian Adventure – Sunday 7 April 2013
Queen Victoria: V304 – Spring Getaway – Friday 26 April 2013
Queen Mary 2: M304 – Westbound Transatlantic – Friday 26 April 2013

This charge will automatically be added to guests’ accounts and all other terms and conditions surrounding the auto gratuities will remain the same.  Guests will be advised of the amount through their pre voyage information and through Voyage Personaliser.   We will be amending all future printed and online information to reflect this.

World cruise means prestige for lines, profitability for agents

World cruise means prestige for lines, profitability for agents

By Tom Stieghorst
January is world cruise season, and this year a dozen ships are sailing on three- to four-month voyages around the world. It’s a time-honored tradition, especially for luxury lines.

So leave it to one of the industry’s iconoclasts to question whether the tradition makes sense.

“In my view, the world cruise is the itinerary of last resort,” said Frank Del Rio, chairman of Prestige Cruise Holdings. FrankDelRio

He said the long stretches of blue water and high costs make a world cruise less profitable than it might appear.

“We do very well in the winter without a world cruise,” he said.

Del Rio is swimming against the tide. At least nine cruise lines will offer world cruises this year, including six that will circumnavigate the globe. Three will last 115 days.

Proponents say a long, slow winter cruise to exotic ports is just the thing many cruise fans aspire to. Having the option of a world cruise cements loyalty with top customers, just as not having a world cruise opens the door for other cruise lines to steal a valued client, perhaps for good.

For travel agents, a world cruise sale is a nice bonus.

“It’s not that common an item, but it’s very profitable,” said Cruise Brothers agent Bob Newman, who has sold four world cruises in 15 years. “People love them.”

World cruises date at least to 1923, when Cunard Line’s Lanconia completed a 130-day trip that visited 22 ports. The institution remains strongest in the U.K., where two Cunard ships and three P&O Cruises ships leave Southampton, England, on world cruises this year.

2013 WORLD CRUISE MAPThe longest world cruises, at 115 days, are those operated by Holland America Line, Seabourn Cruises and Silversea Cruises. (Click here or on the image, right, for a view of a map of 2013 world cruise offerings.)

Last year, Crystal Cruises simultaneously offered for sale world cruises in 2013, 2014 and 2015, including a full 108-day circumnavigation in 2015 that will mark the line’s 25th anniversary.

Mimi Weisband, a spokeswoman for Crystal, said about 400 passengers have booked the full 2013 world cruise aboard the Crystal Serenity, while the balance are taking one or more segments of the cruise.

“There are hundreds of guests for whom Crystal Serenity is their winter home,” Weisband said.

Those guests tell other guests about the voyage and act as brand ambassadors, she said.

A full world cruise has a rhythm all its own, Weisband said. Lines offer progressive enrichment programs that encourage passengers to take all segments of the cruise.

Weisband said today’s world cruise customer often doesn’t fit the stereotype. Some are entrepreneurs who can operate their businesses remotely. Others have children and tutors in tow.

“Years ago the image was some elderly person sitting on a deck with the blanket in their lap,” she said, but today’s world cruise passenger “is active and engaged.”

An active and engaged passenger is just the kind of cruiser targeted by Oceania Cruises and Regent Seven Seas Cruises, the two brands operated by Del Rio’s Prestige Cruise Holdings. And neither line is offering a traditional world cruise this year.

Del Rio said world cruises are hard to fill and that segments are more popular than the cruise as a whole.

“The most successful world cruise Regent had was only 40% full for the world cruise,” he said.

In 2011, Regent offered a world cruise from San Francisco to Southampton that ran from January to June. But this year, two of Regent’s ships are doing long cruises in South America and Asia, while the third is doing 10-day Caribbean trips from Miami.

Del Rio said that is a more efficient deployment than a world cruise, despite its eye-popping price. “Yes, it is a longer cruise, so they’re writing a bigger check, but the per diem yields are not as high,” he said.

Mary KleenFor travel agents, a world cruise can be a big payday.

“We love them,” said Mary Kleen, general manager at Pisa Brothers Travel, New York. “There’s no better sale in cruise travel.”

Pauline Power, director of cruises at Altour in New York, said the commission on a Queen’s Grill cabin on the Queen Mary 2 can amount to $30,000 to $35,000. “Those sort of bookings don’t come along every day,” she said.

The trade-off is that agents must be knowledgeable about a large number of ports and supply the kind of detailed, personalized service clients expect when they’re spending $250,000 on one super-long sailing.

“If you don’t know what you’re talking about with the client, they’re just going to go elsewhere,” said Newman of Cruise Brothers.

And even Del Rio agreed that once a cruise line has eight or nine ships, it can afford to deploy one of them on a world itinerary. At Seabourn, world cruising started in 2009 when it doubled its fleet from three to six ships, said John Delany, senior vice president of marketing and sales.

“We do one a year,” Delany said. This year, the Seabourn Quest will make a 115-day, westward sailing from Fort Lauderdale to Venice.

Delany said it is not only the size of the fleet but the size of the ships that can determine the profitability of a world cruise. Seabourn only has to fill 225 cabins on the Quest, he noted.

“Because our ships are small, we may not have the challenge of filling them to the same extent as some competitors,” Delany said.