Globe and Mail. September 18, 2004
Cruising
Wallace Immen

Crackdown on rebates

Cruise discounts may be harder to find in the future because two of the biggest cruise lines -- Carnival and Royal Caribbean -- are trying to crack down on a strategy some large travel agencies and on-line dealers are using to boost volume.

The lines are threatening to cut off agencies that don't stop advertising deals that undercut the specials they make available to all travel agents. Small agents complain that they can't compete with big-volume dealers who are giving customers rebates from the larger commissions given to top producers and block-booking discounts they can arrange.

But Sanjay Goel, president of Cruise Connection in Vancouver, predicts that the cruise lines are destined to back down because "they have underestimated the power of the big producers." His agency is the largest seller of Royal Caribbean in the country, and he says his customers are already switching to other lines that, so far, are not cracking down on discounting. Carnival is already saying that "you can discount, but don't advertise it," he adds.

Consumers, therefore, should always ask about discounts. "We still have special rates with Royal Caribbean because we are a top [volume] account, but from day one we were never allowed to advertise them, and we haven't," explains Aida Vincelli, vice-president of The Cruise Professionals, a large cruise-only agency in Mississauga. "When a client calls in, we can offer that rate," as well as extra amenities such as shore excursions that are not provided by the cruise line, she adds.


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