Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Marilee Crocker
    • Paul M. Ruden
    • Dori Saltzman
    • Kelly Fontenelle

Are Low Cruise Prices Impacting Travel Advisors?

by Dori Saltzman / June 14, 2022
Are Low Cruise Prices Impacting Travel Advisors?

Are low cruise prices helping or hurting travel advisors? Photo: Shutterstock

 

Seven-night cruises from Celebrity for as low as $399. Fifty percent off cruise fares from Holland America Line. Forty percent off Virgin Voyages cruises. Thirty-five percent off NCL cruises and third and fourth guests for just $99 each.

It’s almost never been less expensive to cruise than it is for the rest of 2022. And 2023 may end up being affected as well, some analysts say.

“While 2023 pricing is holding for now as it is still seven months out from the first 2023 departures, 2023 cumulative booking pace continues to decelerate and is significantly below comparable 2019 levels,” said Truist analyst Patrick Scholes in a note last month. “Unless the 2023 pace reverses trend, we believe significant price/promotional activity will be needed to fill the ships, a similar scenario to what is occurring in 2022.”

But what does all that mean for travel advisors?

Travel Market Report reached out to several cruise sellers to see what impact, if any, the lower prices are having on their business. The answers weren’t as consistent as you might expect.

“Things are great,” said Jesse Morris, owner of We Book Travel, LLC, an independent agency in the Avoya Network, adding that his dollar volume of sales between May 1 and June 15 is nearly triple what it was in 2019. “Almost none of this is via future travel credits as those in my portfolio have already been booked. The current rate environment combined with people who have been sitting on the sidelines waiting to take a trip and being unable to is driving significant volume. After the last two years, this is sorely needed.”

Another Avoya-member agency owner, Penny Rushing, owner of Four Points Travel, agreed.

“The cruise lines have lowered the cruise fare a bit from what the prices have previously been to initiate interest in cruising again. My gross sales last year were the highest during my five years with Avoya. This year, I’m running about 20-25% ahead of that pace.”  

While Morris said he does see how lower rates are means lower overall profits, he doesn’t look at it that way. “I see this is a marathon and not a sprint. I am earning new clients who will book with me year after year and refer more people to me. This is very good for my business overall.”

More Work
Other advisors TMR spoke with said the low cruise prices are making booking management more difficult and time consuming.

“Prior to COVID, we weren’t dealing with so many price reductions after final payment,” said Richard Stieff, owner of a Cruise Planners franchise. “They are back and it’s frustrating as all,” especially since advisors and cruise lines had been promoting the idea that the earlier you book, the better the pricing. “Which has been the case for quite a while – until now.”

Rhonda Day, owner of a Dream Vacations franchise, agreed. “Booking and servicing clients takes a significant amount of time now… lots of second-guessing. Lots of rechecking, etc.”

But Amy Madsen, also an owner of a Dream Vacations, said many of the lowest priced sailings are close-in bookings that actually take very little time.

“They pretty much have the cruise picked out and are handing it to us to confirm best pricing and to make the payment. It’s a quick sale,” she said.

Less Money
The current situation is reminiscent of the early days of COVID-19 when advisors were working day in and day out to cancel and rebook cruises without getting paid for their work.

“We are again in a situation where we are working and putting more time into a booking for a reduced compensation,” Stieff said. “Most times after final payment, we cannot just adjust the pricing, we have to call in and have it manually adjusted by the cruise line. This can mean hours on hold.”

Still, getting bookings coming in, even if they don’t pay as well as they should, is better than no bookings.

“Don’t get me wrong,” Stieff told TMR. “I’m so thankful to be having these kinds of problems vs. the ‘season is cancelled’ issues we faced the last two years.”

Better than No Bookings/No Commission
Justin Smith, president of The Evolved Traveler, a member of Ensemble Travel Group, agreed.

“I look at it this way, lower commissions right now beat the ‘no commission’ days we were all experiencing in 2020 and 2021. I think this is another way we ride this out right now. The cruise industry has always been good partners to the advisor community, and now we need to help each other get back on our respective feet.”

Smith also told TMR that being a member of a consortia, franchise or national host group can help mitigate some of the losses that come from lower pricing, because these groups usually give agencies and advisors access to higher commission rates.

Ultimately, Rushing said, the low commission rates are balanced out by the larger numbers of bookings. “With the lower cruise fare prices that are being offered, I am doing the same amount of work for obviously slightly less commission per sale, but as noted above, my overall number of sales are higher.

  28
  0
Related Articles
Cruise Lines & Sustainability: Updates from the Global Cruise Industry
Live from Seatrade: Resiliency, Partnerships & Unity Are Silver Linings of Pandemic
Oceania Adds More Solo Staterooms, Two New Tour Series
CDC Eliminates COVID-19 Advisory for Cruise Ship Travel
41% of Americans as Likely to Take a Cruise as Before the Pandemic
Hurtigruten to Spend $64 Million on Ship Renovations
Royal Caribbean Building Fifth Quantum-Class Vessel
Family of Drowning Victim Sues Toronto Cruise Line For $1 Million
Agency Consortia Predict Growth in Asia Cruising
Do Holland America’s Latest Moves Undermine Travel Agents?

MOST VIEWED

Brought To You By
  1. Princess Cruises Forced to Adjust Alaska Sailings After White Pass Rail Road Decision
  2. River Cruise Lines Prepare to Deal with Low Water Levels on the Rhine
  3. Updated Cruise Line COVID-19 Vaccination, Booster, & Testing Requirements
  4. Thailand Officially Drops Thailand Pass, Insurance Requirements for Travel
  5. Lufthansa Group of Airlines Will Change its Distribution Cost Charge Starting in September
  6. SAS Pilot Strike Intensifies, Another 250 Flights Canceled on Monday

MOST EMAILED

Brought To You By
  1. Updated Cruise Line COVID-19 Vaccination, Booster, & Testing Requirements
  2. River Cruise Lines Prepare to Deal with Low Water Levels on the Rhine
  3. Canada Will Restart Random COVID-19 Testing at Airports Next Week
  4. Southwest Airlines’ Flight Credits Will No Longer Expire
  5. U.S. Passport Wait Time Is Now 8 to 11 Weeks for ‘Routine Service’
  6. Viking Cruises' New Octantis Is So Much More than Just a Cruise Ship
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Windstar Knows the Way to Tahiti

For 35 years, Windstar Cruises has offered immersive voyages in French Polynesia aboard its small, intimate yachts. As one of the first cruise operators in Tahiti, Windstar brings local culture alive on board and ashore. Cruises sail year-round. 

Read...
Norwegian Cruise Line Holdings Drops All COVID-19 Requirements for Vaccinated Guests
Norwegian Cruise Line Holdings Drops All COVID-19 Requirements for Vaccinated Guests

The changes are for all sailings and all lengths of cruises except for Canada, Bermuda, and Greece itineraries.

Read...
Windstar Appoints Senior Director of Sales
Windstar Appoints Senior Director of Sales

Windstar's director of field sales assumes the role of senior director of sales. 

Read...
Lindblad Expeditions’ National Geographic Islander II Receives Traditional Blessing
Lindblad Expeditions’ National Geographic Islander II Receives Traditional Blessing

The former Crystal Esprit has been officially renamed and is ready for its inaugural sailing. 

Read...
Updated Cruise Line COVID-19 Vaccination, Booster, & Testing Requirements
Updated Cruise Line COVID-19 Vaccination, Booster, & Testing Requirements

An up-to-date look at what is required to sail on ocean and river cruise lines. 

Read...
Norwegian Viva Floats Out at Venice Shipyard
Norwegian Viva Floats Out at Venice Shipyard

The second ship in NCL's Prima Class moves one step closer to completion. 

Read...
TMR OUTLOOKS & WHITE PAPERS
CP White Paper
Multi-Gen Outlook
Distribution Outlook (1)
New to Cruise Outlook
Expedition 2020
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/tfv3DmvN5mY/0.jpg
Windstar Knows the Way to Tahiti
About Travel Market Report Mission Editorial Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News|Leisure Travel|Land Vacations|Cruise|Canada Retail Strategies|Well-Being|Luxury|Training
© 2005 - 2022 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy