Carnival UK chief executive David Dingle has asked for agents' support in 2012, despite the company's decision to cut commission to 5% earlier this year.
Speaking at the UK Cruise Awards in Southampton yesterday, he admitted that 2011 was "not a year for the faint-hearted" and said the cruise company had been responsible for “a few missed beats".
He said "almost" all its travel agent partners had understood its reasoning for the commission cut and had stood by the company.
Justifying the decision, Dingle said the cruise line had helped some travel agents avoiding "commercial suicide through driving up volumes on paper-thin margins".
"We were too late in one case, but thankfully we have now helped to assure agents that their price is as good as any on the high street," he said.
"We believe that we've got this one right – certainly next year's booking trends suggest so, as does all the positive feedback from yourselves and your customers – but we still don't under-estimate the scale of the change, and are listening to those who may still need some advice and support to re-tune their business models."
Looking forward to 2012, Dingle said the industry should take advantage of fixed capacity to grow demand and sustain price "rather than having to absorb more ships and risk downward price pressure".
He said Carnival was holding prices thanks to its strategy of easing winter Caribbean capacity and introducing more short, lower-priced cruises in the summer.
"It’s no surprise that our booking curve has moved a little later, but as we understand this dynamic and learn how to manage within it, we feel confident that pricing will hold up, even amongst later bookings," he said.
"Our customers simply want to feel a bit more economic confidence before committing their money."
See previous story for results of the UK Cruise Awards.
by Bev Fearis
