Royal Caribbean has warned agents that it’s going to get tough on discounting as it unveils new commercial terms.
The cruise line is cutting its base commission to 10% in a bid to encourage greater price clarity and to stop commission rebating.
It is going to do undercover spot checks to make sure agents aren’t discounting, and wants to encourage whistle-blowing within the trade.
It is also going to insist on signing off all joint marketing campaigns with its trade partners.
Advantage Travel Centres leisure director Julia Lo Bue-Said although any commission cut is not welcomed, she is pleased Royal Caribbean is going to get tough on discounting.
"Agents need to play a part in this, as we all stand to win. If we can work together more, we can all earn more money," she said.
"There is a still a lot of discounting across the board, and not just in cruise, and it doesn’t benefit anyone.
"It’s a real conundrum, as suppliers want to reward agents but they don’t want them to use this for discounts. It’s all about educating the consumer that it’s not just about buying on price."
by Bev Fearis
