Carnival Execs Stand Firm Amid Agent Concerns

Carnival held firm on its current commission structure, telling agents aboard the Carnival Splendor in New York on Friday that it would continue the program that took effect in January.

At the first of a series of Carnival Conversations events, travel agents voiced their discontent with Carnival’s lack of communication on vital issues, including agent pay.

For its part, Carnival brass copped to mistreating travel agents and doing a poor job of communicating new policies. The conversation also touched on Carnival’s plan to revise its fare structure and its commitment to including agents in the call to action on its promotional materials.

Commissions: the right decision
But Carnival executives made clear that no further changes to its commission structure are planned.

“Changing commission structures was not an easy decision for Carnival. We want and need travel agents to earn commissions,” said Lynn Torrent, executive vice president of sales and guest services.

“It wasn’t an easy decision, but we do think it was the right decision,” she said, citing other cruise lines that change commission structures as they add capacity.

Shifting loyalties
Torrent was responding to an agent who said that lower commissions reduced the likelihood of him booking clients on Carnival.

“If another line has higher commission, my loyalty will shift. If Carnival is giving more commission to agents [than other lines], my loyalty will increase. Carnival needs more business, agents need more commission,” said Thomas Alva Pemberton, owner of TDE Tours in the Bronx.

Torrent alluded to new ways to earn money selling Carnival. “We’re coming up with additional opportunities for agents to earn commissions,” said Torrent. “It’s our way of trying to balance the equation.”

One such opportunity was announced at the meeting. Carnival said it will pay a $25 bonus commission on new individual Carnival Splendor bookings made before Aug. 31.

Communication breakdown
Joni Rein, vice president of worldwide sales, admitted the company did travel agents a disservice by dropping the news about the commission changes last fall, with no forewarning.

“We should have given you guys more notice,” said Rein.

The executives on hand acknowledged poor messaging all around.

Now, Carnival is bringing agents into the conversation on simplifying its fare structures, a  move it announced earlier this month.

“Our head of revenue management is going to be reaching out and doing some agent surveys; we’re going to hear back from him sometime in the fall with something simpler based on your feedback,” Torrent said.

No mention of agents?
One agent expressed dismay that many of Carnival’s promotional materials do not mention travel agents. Rein pledged that moving forward all print and digital marketing materials will mention agents.

“We did an exhaustive comparison of different suppliers, and we will be putting a three-prong call to action on all of our materials,” said Rein. She indicated that the line has not yet decided whether this will include its TV and radio campaigns.

Torrent asserted that Carnival does include agents in its emails to past passengers. “We’re very specific about putting the travel agent call to action on email if a guest booked through a travel agent.”

Arison speaks
In an introductory video at the event, Carnival CEO Micky Arison lamented industry changes that have driven Carnival and the agency community apart.

“We haven’t done the best job communicating our message to agents over the last few years, but that’s not the way it’s been for the last 40 years,” said Arison

Next time: Carnival responds to agents’ concerns on pricing, value-adds, solo cruisers and more.