Cruise Execs See Strong Agent Distribution Channel

Cruise executives at the CruiseOne and Cruises Inc. 2012 National Conference last week sought, once again, to assure travel agents that their role in cruise distribution is secure.

The executives noted that agent commissions are increasing overall as the cruise lines have rolled out a wider variety of product.

“Back-end compensation has continued to grow every year, and that puts money right back in your pocket,” said Dondra Ritzenthaler, senior vice president of sales at Celebrity Cruises.

Ritzenthaler pointed out that as cruise lines add ships, their need for travel agents increases and that strengthens the cruise-agent partnership.

“What comes with increased capacity is increasing cooperation,” she said.

A wider variety of upscale product also allows agents to earn higher commissions.

“There’s more inventory that’s coming at a higher price, with a higher earning potential,” said Andy Stuart, executive vice president of global sales and passenger service for Norwegian Cruise Line.

Expanding the market
The executives implored agents to help draw cruise rookies into the market.

“If we don’t grow the pie of cruisers, we have a problem,” said Joni Rein, vice president of worldwide sales for Carnival Cruise Line. “If we don’t find enough new cruise rookies, then we’re just sharing the same cruisers.”

The rebating problem
Cruise executives also voiced concern about the impact of rampant discounting, including its ramifications for travel agents.

“[We are] the only people who get more frustrated by the deals then you,” said Ritzenthaler. “It’s the thing we don’t want to do.”

“There are a lot of promotions out there, so when you have preferred suppliers you’ve got to really focus on those,” she advised agents.

“We do want to protect your commissions,” Ritzenthaler said.

Positive indicators for agents
The growing complexity of stateroom types and classes of ship has made travel agents’ knowledge an important resource for consumers, cruise executives said.

Increased group business has also been a boon to agents.

“The group market is really where it’s at,” said Vicki Freed, senior vice president, sales, trade support and service at Royal Caribbean International. “You never see anybody alone.”

Differentiators for travel sellers
Agents were encouraged to simplify the travel planning process for their clients.

“The best service you can provide is not to talk about air and land as separate, but to bring them together as a beautiful gift wrapped box,” said Freed.

That includes selling pre- and post-tour land excursions, which are increasingly popular among cruisers.

Others encouraged agents to sell more than just the cruise, and to push a series of back-to-back cruises.“If you’re not offering a collective voyage, you’re leaving money on the table,” said Charles Dunwoody, senior director of national account sales for Holland America Line.

“Remember — it’s not your job to save your clients money.”

Looking to 2013
The executives were bullish on bookings heading into 2013. Positive data for the coming year indicates stronger pricing from the cruise lines, they said.

“The future is bright, especially since we see prices going up,” said Dunwoody, adding, “The booking window looks like it’s stretching out again.”