Cruise line gets tough on discounting
Royal Caribbean has warned agents that it’s going to get tough on discounting as it unveils new commercial terms.
The cruise line is cutting its base commission to 10% in a bid to encourage greater price clarity and to stop commission rebating.
It is going to do undercover spot checks to make sure agents aren’t discounting, and wants to encourage whistle-blowing within the trade.
It is also going to insist on signing off all joint marketing campaigns with its trade partners.
Advantage Travel Centres leisure director Julia Lo Bue-Said although any commission cut is not welcomed, she is pleased Royal Caribbean is going to get tough on discounting.
"Agents need to play a part in this, as we all stand to win. If we can work together more, we can all earn more money," she said.
"There is a still a lot of discounting across the board, and not just in cruise, and it doesn’t benefit anyone.
"It’s a real conundrum, as suppliers want to reward agents but they don’t want them to use this for discounts. It’s all about educating the consumer that it’s not just about buying on price."
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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