Travel agents’ commission cut by Disney Cruise Line

[crazy4wdw]

Saw this info on the dis news page. I also read this over on the Orlando Sentinel.

Travel agents’ commission cut by Disney Cruise Line

Disney Cruise Line has made a policy change that will affect the amount of commission travel agents receive for onboard bookings. Before the change, if a passenger booked a future Disney cruise while they were on their cruise, travel agents earned a maximum of 16% commission. From now on, Disney has announced that they will only pay agents a flat 10% commission for such rebookings. Many travel agents encourage their clients to rebook while onboard a Disney ship because the traveler receives a discounted fare, a shipboard credit to use on that future cruise and pays a reduced deposit.

Quick to respond to this policy change was Royal Caribbean International, whose vice president of international sales, Vicki Freed, stated, “We believe that those future bookings made onboard are the most valuable bookings we can get. … You should have the full commission. And when a competitor makes a move like [Disney] did yesterday, it concerns us because we don’t want to ever misbehave. And I don’t know of another way to word that. We never want to misbehave with our travel agent partners. Our success is dependent upon your success. We’re not stupid. We are having the best year ever, our stock’s about to hit $100, and that’s thanks to the support of the travel agent community.”

In fact, Freed said Royal Caribbean would try to find a way to increase travel agents’ commission of onboard rebookings. According to Travel Weekly, “Royal Caribbean President Michael Bayley told her, ‘Vicki, find a way to pay travel agents even more for those bookings that are made onboard. Let’s do some incentives. Let’s give them back-end overrides.’”

A Disney spokeswoman said “the change is one of many adjustments the company makes in its business.”

 

[LeeAndRobin]

I'm actually amazed that travel agents even exist anymore, what with everything being easily bookable on the internet. I personally haven't used one in the last 15 years (or more), and I've traveled all over the world during that time period. In the period before that, a colleague used a travel agent for large solar eclipse tours and it was generally a disaster. I have no doubt we could have done better ourselves.

If someone can explain to me what benefits I can get by using a travel agent, I'd love to hear it, as I can't think of one myself.

 

[Spacedog1975]

I'm actually amazed that travel agents even exist anymore, what with everything being easily bookable on the internet. I personally haven't used one in the last 15 years (or more), and I've traveled all over the world during that time period. In the period before that, a colleague used a travel agent for large solar eclipse tours and it was generally a disaster. I have no doubt we could have done better ourselves.

If someone can explain to me what benefits I can get by using a travel agent, I'd love to hear it, as I can't think of one myself.

Typically a travel agent isn't going to charge you anything beyond what you would have paid if you did your own discovery on the internet. They take a commission from your purchase price and provide you with a ton of experience and time in planning. Since you don't pay any extra, the real question becomes: Why wouldn't you use a travel agent?

 

[OKW Lover]

If someone can explain to me what benefits I can get by using a travel agent, I'd love to hear it, as I can't think of one myself.

Its know as an On Board Credit (OBC). Effectively your cruise will cost less if you use a TA that offers OBC as an incentive to book through them.

 

[DDLand]

Ironically, it wouldn't shock me if in some cases a 10% Disney commission was still more profitable than a 16% Royal Caribbean commission. Those Disney Cruise prices can get to crazy levels.

 

[mcd2745]

It's

Its know as an On Board Credit (OBC). Effectively your cruise will cost less if you use a TA that offers OBC as an incentive to book through them.

Since OBC is essentially a travel agent "sharing" some of their commission with you...with this move, it's only logical to assume that OBC offered by travel agents is going to decrease. It seems every day, DCL does something to chip away at any sense of value you could possibly have sailing with them.

 

[OKW Lover]

It's

Yes, it is.

 

[rteetz]

Interesting. I wonder if Disney will continue this to other things like theme parks. I'm sure they will talk about this on the disunplugged podcast tomorrow and how it affects dreams.

 

[Q-man]

Didn't know travel agents still exist. Does anyone under 55 use them?

 

[Q-man]

Ironically, it wouldn't shock me if in some cases a 10% Disney commission was still more profitable than a 16% Royal Caribbean commission. Those Disney Cruise prices can get to crazy levels.

That is likely very true.

 

[skater]

To answer the question about why use a TA. I am a full time TA in a busy office. I have Disney clients who won't customize their Magic Bands without my help. Older people can especially feel overwhelmed with the technology. I also have young parents who are just too busy to spend hours researching everything they would like to know about a Disney World vacation. On the other side, I have clients who might not "need" me, but book through me because they want a partner in their planning. Somebody to bounce ideas off of. Someone to help them search for a last minute BOG adr. One couple who goes about 3 times a year had a canceled flight in the Fall. My entire office was working to get them on the next available flight and eventually find them a hotel for the night. Sometimes, its nice to have someone in your corner .

 

[kamik86]

Typically a travel agent isn't going to charge you anything beyond what you would have paid if you did your own discovery on the internet. They take a commission from your purchase price and provide you with a ton of experience and time in planning. Since you don't pay any extra, the real question becomes: Why wouldn't you use a travel agent?

I have heard a number of horror stories, including many of this board about travel agents that:
1) Messed up the booking and it was not realized
2) Didn't really know things as well as they thought and provided bad info. So you would either have to do all the research yourself anyway or trust they were right.
3) Didn't respond in a timely manner causing losing out on some change or deal they wanted to make
4) Not being able to contact the company directly only through the agent making any changes more cumbersome.

Now maybe if you have a really good agent. Besides AAA I don't really know of any in my area besides a house with a sign that they are an agent a few streets up from mine... which I only know of because I passed it. So I have no way of knowing if any of these places or good or how to find a good agent. So I don't use them. All of the risks above aren't worth some potential onboard credit.

 

[OKW Lover]

Didn't know travel agents still exist. Does anyone under 55 use them?

Many, many do. Especially when it can save them money.

 

[rteetz]

Didn't know travel agents still exist. Does anyone under 55 use them?

Lots of people do and the Disboards owner and founder Pete Werner is also co-owner in Dreams Unlimited Travel.

 

[Q-man]

Many, many do. Especially when it can save them money.

Are they all online companies? I haven't seen a travel agent store front in years.

 

[Spacedog1975]

I have heard a number of horror stories, including many of this board about travel agents that:
1) Messed up the booking and it was not realized
2) Didn't really know things as well as they thought and provided bad info. So you would either have to do all the research yourself anyway or trust they were right.
3) Didn't respond in a timely manner causing losing out on some change or deal they wanted to make
4) Not being able to contact the company directly only through the agent making any changes more cumbersome.

Now maybe if you have a really good agent. Besides AAA I don't really know of any in my area besides a house with a sign that they are an agent a few streets up from mine... which I only know of because I passed it. So I have no way of knowing if any of these places or good or how to find a good agent. So I don't use them. All of the risks above aren't worth some potential onboard credit.

Just like any professional or service, you need to evaluate properly. It's great to have a recommendation, or a long term relationship with a great agent. You could say the same thing of a plumber or an electrician, or any other service you might hire.

 

[kamik86]

Just like any professional or service, you need to evaluate properly. It's great to have a recommendation, or a long term relationship with a great agent. You could say the same thing of a plumber or an electrician, or any other service you might hire.

I guess in my case since I literally didn't know anyone else that uses a travel agent either... well no I know one person that goes through costco for onboard credit. But there isn't a costco around here so I would be joining just for using the travel agent which would then decrease the benefit in on board credit too. Maybe in other areas they are used more I don't know.

 

[OKW Lover]

Are they all online companies? I haven't seen a travel agent store front in years.

Hmm, maybe you need to get out more.

Yes, there are still store front TA's as well as on line TA's.

 

[Tozzie]

I will tell you sometimes a Travel Agent is invaluable, I have taken many Adventures by Disney Trips this past June I did the pre cruise ABD but it wasn't available to book until months after the cruise was booked and it was sold out in about an hour, I had to be in work very early the day the booking for the ABD opened and I would not have been able to be on the phone to book it due to my work schedule. IF it had not been for my awesome Travel agent I would not have been able to do the pre cruise trip.

 

[LeeAndRobin]

Typically a travel agent isn't going to charge you anything beyond what you would have paid if you did your own discovery on the internet. They take a commission from your purchase price and provide you with a ton of experience and time in planning. Since you don't pay any extra, the real question becomes: Why wouldn't you use a travel agent?

1) Because the ability to book anything anywhere on the planet can now be done online. '

2) Because the booking is done by me, I know what I need to do if changes are involved. I don't have to try to get in touch with someone halfway around the world.

3) Because TAs (at least in my experience) try to book you in international versions of American chain hotels which are a) more expensive and b) less charming than local establishments.

4) I'm not convinced that a travel agent no longer charges you no more than than you would pay if you booked on your own, especially for hotels.

Then again, I guess I am a non-traditional American traveler. I eat the local cuisine when I travel, not McDonald's/KFC/etc. I like to stay in locally run hotels. I like to do my research and create my own itinerary instead of being locked into something someone has set up for me.

With the internet, NONE of this is that hard or time consuming. You just can't do it at the last minute.