Sent: Wednesday, December 06, 2000 7:48 AM
Subject: Re: Cruise Prices question

Ah cruise prices ;)
All agents get the same price from cruiseline, i.e. agent calls for a catX, sailing price is 1000 pp.
This is the same for everyone. Where the differences then come in are as follows.

The commission rate can very as agencies establish links via various consolidators. So one agency might get a 10%
commission rate whereas another receives a 15 % commission rate. So one agency would receive 100 pp commission
while another would receive 150 pp commission. So the first agency would owe $900 pp to the cruiseline and the other
would only owe 850 pp. Therefore an agency can elect to only make 10 % even though they are commissioned at 15%
so their price to the client would be $50 pp less.

How they split their commission with the client is their determination. This is the first variance.
Second, many agencies will take group space which is then sold as individual space. In other words three types of groups.

One is an Affinity Group, i.e. you and your bowling team all take 10 cabins to sail together. The other way the agency books group space for ten cabins and then sell it to anyone that wants that sailing. The client has no idea nor concern that they are a "group". They won't be seated together etc.

Doing this the extra birth afforded x number of cabins can be used to lessen price or increase revenue. Most group bookings allow for a free birth per so many births booked. So say ONE birth for 1000 is not paid for by the agency.
Again they can elect how to handle this extra money by passing it on for a lower price for each client or taking the profit themselves or a combination.

Second, an agency may take out Group Space early at a price discounted by a line to promote bookings on a particular ship or sailing. Later, if sailing is booked well line may increase price so new bookings can be higher than those that were
contracted for previously. This can sometimes result in significant ability to charge much less than everyone else.

An agent or agency may elect to sell a Group Booking at almost or even no commission to provide for completing a needed number of bookings. In example line may offer agent a free cruise for booking x number of cabins on a particular sailing or ship or line. Cruisline says book 10 cabins on their line between Jan 2 and Feb 2 and they will issue a free cruise certficate.

Agent has booking at reduced rate to achieve needed numbers foregoing commission in order to get their free cruise.
There may also be extra commissions established in same way, book any cabins through certain dates and they will be
commissioned at 20% instead of normal rate. Again agent can pass it on or make more.

So you see, although every agent gets the " same " price, price is not necessarily the same. Many years ago certain agencies
did recieve different prices based upon size and quanity of bookings. The small agencies were at a real disadvantage and
complained bitterly. That's when this method was estabished.

Finally, cruiselines themselves change prices right up to sailing, raising prices when all but a few cabins are sold, lowering
when booking goals haven't been made. So a price recieved by an agent on Monday may be different from one recieved
on Friday for same cat and sailing.

Also incentives can be added on by line in way of offering same price but adding a $99 air fare from selected gateways and so forth. As you can see pricing is not a simple matter. Cruiseline prices vary many ways and ofetn just as do airline and hotel based upon many factors. How agent handles your booking including making serious attempt to watch pricing and then having it adjusted if and when it becomes lower is a part of the system too.

Remember you are asking an agent to not only lower your price but what they make in most cases.
However sometimes line will " protect commissions " when they have a dramatic price change.

-- George in NY