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Agents not impressed with P&O and Cunard commission move
P&O Cruises and Cunard have raised their agency commission levels from 5% to 7.5% following pressure from the trade.
The cruise brands have come under fire from agents since slashing commission from 10%-15% in 2011.
But some agents (see comments posted below) say this week’s rise to 7.5% does not go far enough and will not stop them switch selling away from the cruise brands.
The new base rate of commission will be paid to all agents for both brands from Monday (December 9) and covers all departures from this date onwards.
"The new commission structure recognises the absolute value we place on agents, who are critical to our business, and is part of a much wider process of positive change for both brands," said sales and distribution support director Chris Truscott.
He said there would also be "tailored marketing support" for individual agents.
Responding to agent criticism, the cruise brands will now pay commission on packaged flights when booking Caribbean and Mediterranean fly/cruises.
"We listened, we promised and we have delivered," said Truscott.
"This signals a real step change in our relationship with the trade. We have trialled a number of initiatives with our travel agent partners during this year to assess which marketing channels perform the best.
"We have offered over 300 fam trips for agents, we have made our sales team far more accessible and we have introduced a simplified, transparent, easy to sell pricing policy. Commission was the last piece of the jigsaw and the new package reflects a mutually beneficial approach to agents for P&O Cruises and Cunard."
Announcing the changes today, Truscott also confirmed a new head of sales for P&O Cruises and Cunard.
Jeremy McKenna will join on January 2 from Royal Bank of Scotland, where he held a number of senior roles across its retail banking business including head of operations and head of self service.
* Do you think P&O and Cunard have gone far enough? Is 7.5% enough to keep you happy? Send us your views by clicking on POST YOUR COMMENT below.
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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