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Fred. Olsen: You can discount, but not in our name
Fred. Olsen has told travel agents they can discount its cruises as long as they make it clear to customers they are funding the discount, not the cruise line.
The company has issued new advice to travel agents followed discussions with ABTA, which was concerned about the cruise line’s attempts to discourage members from funding discounts out of their commission.
Fred.Olsen sales and marketing director Nathan Philpot said ABTA felt agents might believe they were no longer allowed to discount, which is not the case.
However, the company has written to agents advising that if they must record and agent’s discount or inducements on their own headed paper, separate to the paperwork setting out the Fred. Olsen cruise price and make it clear that such discounts have nothing to do with the contract between the cruise line and the passenger.
"This is particularly important to FOCL from a liability perspective. If, for example, an agent arranges for free transport and/or hotel accommodation, it must be clear to the passenger that the provision of such transport and/or accommodation is not the responsibility of FOCL, and FOCL shall have no liability in respect of the transport and/or accommodation whatsoever," said Philpot.
Fred. Olsen cut commission to travel agents last year in an attempt to prevent them from funding discounts out of their earnings. Philpot said: "The aim was to ensure a level playing field between larger and smaller travel agents, in order to provide passengers with as much choice as possible, and to enable agents to service passengers whilst remaining profitable.
"Since the introduction of this strategy, we have received positive feedback from agents that recognise this level playing field approach has been beneficial to all parties. However, following discussions with ABTA, we have reviewed our position on this matter and have decided to issue some clarification and guidance to agents in respect of their rights and obligations to FOCL where discounting is concerned."
Philpot said "very few" agents were still discounting and most said they were more profitable following Fred. Olsen’s move.
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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