Disney Cruise Line Adjusts Travel Agent Commission Rate
by Daniel McCarthy /Starting Jan. 1, 2018, travel agents booking 2019 sailings with Disney Cruise Line will be earning commissions based on agency revenue levels.
Disney made the announcement in an email to agents yesterday, writing that “as is common in the travel industry, we periodically evaluate commission levels and make adjustments.”
Agencies will start at an initial 10 percent commission rate and will get an increase on that rate depending on the revenue they generate through Disney Cruise Line:
- Agencies booking less than $74,000 will have a 10 percent commission rate.
- Agencies booking between $74,000 and $145,999 will have an 11 percent commission rate.
- Agencies booking between $146,000 and $320,999 will have a 12 percent commission rate.
- Agencies booking between $321,000 and $467,999 will have a 13 percent commission rate.
- Agencies booking between $468,000 and $626,999 will have a 14 percent commission rate.
- Agencies booking between $627,000 and $1,605,999 will have a 15 percent commission rate.
- Agencies booking anything from $1,606,000 up will have 16 percent commission rate.
In the release announcing the commission changes, Disney also said that it will review agency revenue from “time to time” to determine whether the commission rate should be changed. For travel agents booking onboard packages or “non-cruise revenue” and travel insurance, Disney will pay 10 percent commission. In the release, Disney also said that it would not pay commission on port taxes, airfare, and ground transfers.
Disney did not respond to TMR’s request for comment by press time.
Disney Cruise’s agent history
Disney Cruise’s last big trade splash happened two years ago when it announced it would lower its commission from 16 percent to 10 percent on rebookings made by passengers while onboard a ship.
The move prompted a response from the American Society of Travel Agents, which formally asked the cruise line to reconsider the commission cuts.
“Our agents will book what their clients specifically request, whether that is Disney or any other cruise line,” said ASTA President and CEO Zane Kerby at the time. “However, travelers often rely on their trusted travel agent to guide them through their vacation choices, and because of the breadth and quality of cruise inventory available, agents have many alternatives to suggest.”
Virtuoso dropped Disney as a preferred supplier after 14 years due to the policy change.