More commission cuts a possibility for agents
Royal Caribbean Cruises may follow Complete Cruise Solution’s lead in slashing commission payments to agents if the move proves successful, it said.
UK & Ireland managing director Dominic Paul said he would wait to see if the cuts, which apply to sales of P&O, Princess Cruises and Cunard cruises from 2012 onwards, are having the desired impact.
CCS cut its base commission from up to 15% down to just 5% in March, claiming it was to prevent agents devaluing its product by giving a chunk of their commission away in the form of discounts.
However, P&O and Cunard have since discounted some 2012 cruises by 10%.
Speaking at the annual Barclays Travel Forum said it was too early to tell if CCS’s commission cuts were working and if the trade was still supporting the cruise operator or if it had alienated the trade as a result.
"The trade is essential to us and it is vital for us to keep the trade onside," said Paul. "By the summer we should have a clearer idea about the impact CCS’s cuts have had."
Industry expert Chris Photi of travel accountants White Hart Associates said agents were likely to make up for the loss of commission by selling customers excursions and other add-ons, diverting income away from the cruise lines.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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