Complete Cruise cuts commission
Complete Cruise Solution has cut commission by one per cent for 2009.
The reduction coincides with the launch of the 2009 programmes for P&O Cruises, Ocean Village, Princess Cruises and Cunard Line.
CCS claims the move follows a period of consultation with key agents.
The organisation said it considered following some other tour operators by introducing a “non-commissionable†element of the cruise fares to represent these charges, with a varying amount by sailing to reflect the differing costs of the various itineraries and fly-cruise combinations.
But after discussion with agents, CCS understood that this would “introduce an impractical level of complexityâ€.
As a result the sales arm of the UK’s biggest cruise lines decided to “reflect these charges in the commission structure by introducing a one percent reduction in base commissions†for 2009.
“This change is in the context of increased fees and taxes from Governments, airlines, airports, ports and other bodies that have increased the costs incurred by travel companies,†a statement said.
“In line with many other sectors of the travel industry Complete Cruise Solution has been considering how to minimise the impact of these increased costs on customers.â€
CCS head of sales Mark Pilkington said: “Before we make any fundamental change to the way we work, we always consult and consider the views of our agent partners.
“In this instance, agents told us that a reduction in base commissions would be a simpler way to reflect these costs.
“We deliberately raised 2008 commissions in view of a large capacity increase and are now simply normalising them for 2009.
“In addition, base commission is only one element of our remuneration strategy and this initial position for 2009 cannot be viewed in isolation as in parallel with this change in our commission structures, we are working with agents on a market-leading override scheme.
“We are also introducing bonus commissions on a range of cruises offering a commission-earning opportunity of up to 10% more.
“With an average selling price of over £3,500 per booking and tiered commissions based on volume we believe that there are still massive opportunities for agents to profit from and grow their cruise business.“
by Phil Davies
Phil Davies
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