Cruise lines ‘are paying agents extra under the table’

Posted on 24 April, 2013 by Spacejunkie2

Cruise lines ‘are paying agents extra under the table’

By Lucy Huxley

Cruise lines that have cut commission are giving money back to travel agents “under the table” as they accept that reducing payments to 5% was a mistake, according to the UK boss of MSC.

Giulio Libutti, UK managing director, told Travel Weekly: “Under the table, these lines are now starting to give money back.

“They aren’t going back to fixed rates of 15% or up to 18%, but they are offering double commission for certain months, or bonus commissions.

“Through variable means they are making it back up.”

He added: “The fact that Princess moved back from 5% to 10% shows it was a mistake. You have to have mutual respect for agents and, by cutting commission, they were basically saying the value of an agent wasn’t important any more.”

Libutti’s comments come a month after he accused lines of “underestimating the value of agents” by cutting commission.
MSC revised its terms to offer performance-based commission rates of up to 13%, a move Libutti claimed had increased revenue by 35% year on year in 2013, and had also developed new agent partnerships.

“We are now working with some small cruise specialists that a year ago were doing no business with us at all,” he said.

Libutti said competition was particularly challenging as growth in the cruise market had stalled due to the economic crisis and high-profile incidents involving Costa, Carnival and Thomson Cruises.

“Cruise will continue to grow but it is suffering so we all need to find travel agent partners who understand and share our targets.”

MSC expects to attract about 100,000 passengers from the UK in 2014, up from an anticipated 70,000-75,000 in 2013.

CLIA seeking ‘better connections’ via YouTube channel

Posted on 18 February, 2013 by Spacejunkie2

CLIA seeking ‘better connections’ via YouTube channel

By Laura Del Rosso

CLIA unveiled Cruise Industry TV, a YouTube channel with videos aimed at consumers, travel agents and the cruise industry.

The content includes a message from Bob Sharak, CLIA executive vice president, describing CLIA’s certification programs and the value of the designations to sharpen knowledge and the ability for agents to promote expertise to customers.

CLIA agents can share consumer-targeted video on the channel to showcase their expertise as CLIA members. One two-minute video aimed at the general public explains the benefits of using a certified agent, likening booking a cruise without a certified agent to undergoing surgery with an unskilled surgeon.

“Videos are a great, easily shareable way for us to explain the many different areas and unique features of the industry,” said David Peiken, a CLIA public affairs spokesman. LauraDelRosso

“We hope certified travel agents will use Cruise Industry TV to learn about topics ranging from the industry’s certification processes to some of the most popular options for cruisers, which will help create even better connections between the agents and their customers,” he said. “We look forward to the feedback from our incredible base of certified travel agent members to see what they have found most useful and how Cruise Industry TV has allowed them to provide even better service to their customers.”

Other videos offer tips and features to help vacationers book a cruise and an industry section highlights operational practices.

“Cruise Industry TV is the one-stop hub for videos about the industry and its commitments to its passengers, the environment, health and safety, and communities around the world,” Peiken said. “Our goal with Cruise Industry TV is to ensure the latest video content about the industry is easy to find and easy to share, and YouTube is the best platform to do both.”

Cruise Industry TV is designed to complement CLIA’s other social media, including Duffy’s CEO Blog, Twitter feed and CLIA’s cruise fan Facebook and Twitter pages.

Cruise lines “slash” prices for February

Posted on 4 February, 2013 by Spacejunkie2

Cruise lines “slash” prices for February

By Lee Hayhurst

Cruise lines are slashing prices in a bid to boost sales after what is understood to have been a disappointing January.

A series of agents and third parties including cruise.co.uk, Cruise 1st and Travelzoo have gone out today with e-alerts claiming prices have been “slashed”.

Operators had hoped to increase prices this year during the key early year wave booking period but Travel Weekly understands business has been slower than hoped.

While Travelzoo is advertising savings on a range of cruises worldwide, the more aggressive discounts and added-value deals are available on ex-UK Southampton sailings.

Cruise.co.uk sent an alert to its database today entitled “Southampton prices slashed”, indicating the lines had given up trying to drive higher prices.

Cruise 1st’s press release claims to have “slashed” Royal Caribbean prices sailing from the UK, with prices from £599 for seven nights in a balcony cabin, plus onboard spend.

The Travelzoo ‘newsflash’ is headlined: “Cruise Prices Slashed for Wave Season, Save up to 54%”.

Seamus Conlon, cruise.co.uk managing director, said: “The cruise lines have introduced new cheaper prices with restrictive conditions in order to boost sales.”

Carnival UK sales director Giles Hawke denied the move was a reaction to poor sales in January. “As we often do, we have a small amount of residual stock left on some early season cruises.

“For 2013 so far, we’re happy with our rate of sale and our yield. The prices we’re now putting into the market are not significantly different to what we had in the market last year.

“The new cheaper prices carry different terms and conditions so consumers can chose to have flexibility at the higher fare or pay in full with lower flexibility for the lower fare.”

Carnival’s P&O Cruises and Cunard brands introduced a new pricing structure this year in which early booking Vantage Fares were meant to offer the best value and late Getaway Fares, while possibly cheaper, offered less flexibility.

Most of the major lines have cut commission to travel agents in the last year, Carnival the most aggressively to just 5%, from up to 15%.

Today Royal Caribbean International and Celebrity Cruises, which are paying 10%, unveiled “double incentives for agents and enticing new offers for customers”.

Royal Caribbean’s ‘Going, Going, Gone’ campaign is offering 3,000 14-night cruises at £999 per person, and 1,000 six to eight night cruises at £599 per person, from Southampton.

A Royal Caribbean announcement said agents will receive a £20 Lifestyle voucher for every 2013 booking made in February on cruises sailing from Southampton.

In addition, for any cruise booking made before February 28, agents will be entered into a daily prize draw to win one of five £100 Love to Shop vouchers.

Celebrity Cruises’ ‘123 Go!’ campaign allows customers to choose from one of three offers – free drinks worth up to $1400 per stateroom, free coach transfer or car parking in Southampton or $300 to spend onboard.

The offer is valid on all 2013 Celebrity Eclipse sailings departing from Southampton, in all stateroom categories, and also ends on February 28.

Agents will also receive a £20 Lifestyle voucher for every 2013 booking they make on Celebrity Eclipse sailings departing from the UK and sold in February.

In addition the Great Apple Giveaway has been extended until the end of February. Agents can win weekly giveaways of iPhone 5s and iPad minis, plus a grand prize of a stylish MacBook Air.