DCL cuts commission for on-board bookings

[OKW Lover]

Not sure what DCL is thinking here, but according to this news story http://www.travelmarketreport.com/a...-Travel-Agent-Commissions-on-Onboard-Bookings DCL is reducing the top commission from 16% to 10% for on-board rebookings.

Yes, its obviously a money grab. But this one might come back to bite them. The TA's are now less likely to recommend a client book their next cruise while on board.

 

[scootch]

There was some discussion on this last week, but I can't seem to find the thread.

 

[OKW Lover]

There was some discussion on this last week, but I can't seem to find the thread.

Thanks. I was away last week so I probably missed the thread. I'll have to do a search.

 

[scootch]

I think it had something about onboard credit in the title.

 

[Pens Fan]

Here is the other thread http://www.disboards.com/threads/ne...onboard-booking-and-travel-agent-obc.3457951/

Thanks for posting yours, though. The article you linked to was really interesting.

 

[OKW Lover]

Here is the other thread http://www.disboards.com/threads/ne...onboard-booking-and-travel-agent-obc.3457951/

Thanks for posting yours, though. The article you linked to was really interesting.

Thanks. I did a search and did find the thread you linked, plus another one.

 

[DCLDVC1]

Not sure what DCL is thinking here, but according to this news story http://www.travelmarketreport.com/a...-Travel-Agent-Commissions-on-Onboard-Bookings DCL is reducing the top commission from 16% to 10% for on-board rebookings.

“We’re going to support those that support us,” agreed Kirrily Miller of Charleswood Travel in Winnipeg. “I’m very upset about it and worried about it setting a precedent, and hoping there will be enough push-back from agents to make them reconsider. Often I recommend to clients that they book their next cruise while onboard, to get the extra benefits, but I won’t do that for Disney.”

Shouldn't she be doing what's best for her clients? Booking onboard is still beneficial for the cruiser.

 

[OKW Lover]

Shouldn't she be doing what's best for her clients? Booking onboard is still beneficial for the cruiser.

Hmmm, yes she should if she wants repeat customers. OTOH, she does need to make a living and if that works best for her that's her business decision to make.

 

[BrandiBelliveau]

Unless my TA is going to save me the same money as the OBB I'm going to do what's best for me. If she gets pissy about losing 6% & tells me not to book onboard then she'll be thrilled when I book onboard & she ends up with zero after I decide she's no longer needed.

 

[sweetpee_1993]

I think the best option for any TA is to just give the information to clients and let them decide. TAs will have to reduce their OBCs they give to offset their lower commission. The margins aren't that big to begin with. Even if a TA doesn't give any OBCs, Disney will in addition to the discount + (possible) reduced deposit. If I was a TA I wouldn't be overly proactive in bringing up rebooking with my clients. If they asked I'd be informative including letting them know of reduced OBCs from the agency as a result of lower commission rates. I just wouldn't be super proactive in bringing it up.

 

[jahber]

Well, to be fair, many many people have excused DCL's price hikes and other decisions as the company just doing what's best for the company. But if a TA does it, she's being greedy or selfish or shady. Personally I think TAs need to look out for themselves. They shouldn't lie or withhold information, but they can and should be honest with their customers. DCL treated them terribly and that (in my book) easily translates to treating customers terribly. Nothing wrong with a TA being honest about how a company treats them and how customers may themselves be expected to be treated.

 

[ljm23]

I would expect these TA' to then cut the OBC they offer given their bottom line has been cut right?

 

[jahber]

I would expect these TA' to then cut the OBC they offer given their bottom line has been cut right?

Yup. Most of them will have to in order to maintain a revenue stream. The smaller the TA, the more it impacts them