Testing the Waters with Dori: Rebating, a Blast from the Past?

Earlier this week, Virgin Voyages’ vice president of North American sales John Diorio sent a sternly worded email to Virgin’s First Mate (travel advisor) partners to scold those that take part in actions that he said “are not in the spirit of partnership that Virgin wishes to engage in.”

Specifically, Diorio was talking about solicitation and rebating.

I was surprised when I saw the email pop up in my inbox. In particular, the reference to rebating caught me off guard. I’m not gonna lie, I thought rebating was a thing of the past.

It’s been years since I’ve heard a cruise line call out advisors for rebating. It’s been years since most of the cruise line cracked down on the practice limiting the amount that advisors can give back in gift form – and never in cash. (The last time I wrote about rebating was in 2010 when most cruise lines stared cracking down on the policy.)

The last time TMR wrote about rebating was 2018, the same year ASTA changed its name from the American Society of Travel Agents to the American Society of Travel Advisors.

At the time, the advisor community was in the midst of a transformation, with only a small percentage of advisors and agencies charging service fees, and many still feeling a need to compete with OTAs on price instead of service.

Eight years later, I thought we’d moved mostly past all this.

Apparently, not everyone has.

I’m going to give the advisors who are rebating the benefit of the doubt. Perhaps they feel pressure to price match. Or they’re new and they don’t realize rebating is more damaging to their bottom line than beneficial.

I will not give the advisors who are poaching other advisors’ clients the benefit of the doubt.

I’ve seen debates about onboard “advertising,” like advisors who leave cruise ducks for people to find that are branded with their agency logo and contact information. I fall on the side of the debate that says this is not acceptable.

A few weeks ago, I attended the Trevello annual conference. When I asked advisors what they liked about Trevello, I heard time and time again how supportive the community is of each other. By and large, advisors help each other out. They don’t compete with each other.

The wonderful thing about this sentiment is that it’s one I hear at every agency conference I go to.

The travel agency business is one of the least cut-throat competitive industries out there. Most advisors recognize there is enough business out there for everyone – especially when they specialize and don’t want just any business.

Even better? I hear the same sentiment when I go to industry conferences that aren’t consortium, host, or franchise specific.

The industry does better the more advisors support other advisors.

And yet, clearly, enough of both behaviors is happening for John Diorio to feel the need to reach out directly to Virgin Voyages’ travel advisor partners.

Maybe I’m being naïve. One thing I’ve learned over the past five or so years is that just because you don’t hear about something doesn’t mean it’s disappeared.

Maybe that’s the case here.

You tell me. When was the last time you heard of a travel advisor rebating? Do you rebate? Have you had a client poached from you in recent years? Have you seen advisors leaving flyers or other marketing materials on cruise ships you’ve visited?

I’d love to hear from you. Email me at dsaltzman@travelmarketreport.com.