Cruise lines react to Carnival’s new payment scheme

Monday, 23 Feb, 2011 0

Rival cruise lines have voiced their continued commitment to the travel trade following an announcement by Complete Cruise Solution about changes to its agents payment scheme.

Fred. Olsen Cruise Lines said some agents could be penalised by the new system.

“Although there are some aspects of the CCS proposals that need further clarification, it seems that this initiative could penalise those agents who trade through the quality of their customer service, rather than those who rely chiefly on discounting,” said MD Mike Rodwell.

“Whilst we understand the rationale behind CCS’ approach, Fred. Olsen highly values the contribution made by our travel agent partners, and we will continue to work closely with them to ensure that a mutually successful relationship remains.”

MSC Cruises said it would maintain its support for travel agents.

“We are not going to follow our competitors,” said Giulio Libutti managing director UK and Ireland.

“We are not going to take any action that will affect travel agents and we recognise and appreciate the work travel agents are doing especially our preferred partners.

“Travel agents and our preferred partners are very important to us and we want to support them, so we are not going to cut any commission.”

Royal Caribbean, Celebrity and Azamara Club cruises said it was “business as usual”.

Dominic Paul, VP and MD UK & Ireland for the three cruise brands, said: “We have ambitious growth plans for 2011and 2012 and we are totally focused on achieving our goals.

“Our trade partnerships are very important part of our business and we are proud of the relationships that we have with them.”

The statements came following an announcement by Complete Cruise Solution that it was cutting agents’ base commission to 5%.

Under the previous tiered system, agents could earn up to 10% commission.

Under its revised scheme, Carnival will no longer give discounts for direct bookings and will not pay volume-based override commission.

Carnival chief executive David Dingle said he expected other cruise lines to follow suit and that the scheme would become a blueprint for the industry.

By Bev Fearis



 

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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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