Make Money on Shore Excursions by Booking Third-Party Providers
by Dori SaltzmanAgents are increasingly booking their clients on shore excursions through third-party vendors as cruise lines continue to refuse to pay commissions on individual shore excursion sales.
It’s a win-win situation to book through independent companies like ShoreTrips, Shore Excursions Group and Port Promotions, several agents told Travel Market Report.
The client gets a more personalized experience in a smaller group, often at a lower price than a cruise line-sponsored excursion. And the agent gets paid a commission on the booking.
“I have never booked shore excursions through any cruise line for a few different reasons,” said Paula Presley, owner of All-N-One Travel in Louisville, Ky.
The independent companies pay commissions, “and we should get commissions on everything we book,” she said. “But to be honest with you, the clients that I have booked on ShoreTrips prefer smaller groups. They don’t like going with 100 people with the cruise ship, where it’s almost like a herd of cattle. They like the flexibility and they get a whole lot more personalized attention.”
 |
“There is a distinct value-add to a private excursion company,” said Lisa Silvestri, owner of Silvestri Travel, in Sarasota, Fla. “No coach with 40 to 50 people going to the same place, a much more personal experience, and fewer lines because one arrives before the large groups. While the commission isn’t huge – anywhere from 6% to 10% – in today’s economy every little bit helps.”
Third-party shore excursions give clients “a much more optimal experience all in all,” commented Melissa Ortiz, co-owner of South Seas Travel & Cruises, also in Louisville.
 |
They also save clients money. “We have a group going to Hawaii and I’m using a private shore excursion company,” Ortiz said. “I’ve saved my clients probably about $300 per person by doing the private tour company versus what they charge on the cruise ship.”
The commission payment is important, she said, and there is an added bonus on the customer service side: “You’re a rock star to your clients, because they think you got them the best excursion.”
Booking with the cruise lines
Some agents acknowledge that while they prefer to book third-party vendors for shore excursions, there are times when a cruise-line sponsored excursion is what’s best for the client.
“If my clients are less adventurous and favor the security of a ship excursion, then I match what they want to do as closely as possible with a ship excursion,” said Silverstri.
And, depending on the destination, when roads are bad, traffic is an issue, and the excursion site is far from the port, “the prudent option” is to go with what’s provided by the cruise line because ships will only wait for cruise line-sponsored tours that arrive late, she said.
Rusty Pickett, owner of Shellback Cruises of Charleston, S.C., said most of his clients favor the “safe” option. “Most folks that are my clients really don’t want to take the chance on literally missing the boat,” he said.
Serving the client
Agents agree that booking the excursions – commissionable or not – are part and parcel of the service they offer their clients. While the marriage of a happy client and an earned commission is the preferred outcome, travel sellers understand that satisfied clients, who will return and refer, are more important than a few extra dollars.
 |
Susan Wilcox of Davis, Calif.-based Tortoise & Hare Travel has only used third-party vendors for shore excursions. But if a client asked her to book a cruise line-sponsored excursion, “I would go ahead and make the booking as requested,” she told Travel Market Report.
“As it would cost me very little time and effort, I would consider it a complimentary service, part of enhancing their cruise experience, rather than a money-making opportunity for me,” she said. “My efforts to help travelers get the most value from their investment keep them coming back to me, and that’s worth more in the long run than a few dollars in commission right now.”
Ortiz of South Seas Travel & Cruises agrees – to an extent. “Primarily you want that return business, so you want to do this for your clients,” she said. “But yes, commission is definitely a big plus. I have done things with no commission just to get someone a personal experience that they wanted for their family, but I don’t like doing a bunch of stuff and not getting paid for it.”
No free work
Not all travel agents are willing to book non-commissionable products, especially if they don’t charge a service fee.
Both Pete Fanizzi, owner of My Going Places in Staten Island, N.Y., and Linda Schreiber, president of Starship Travel in Arlington Heights, Ill., told Travel Market Report they simply won’t book cruise line excursions.
 |
“We don’t want to waste our time booking thousands of dollars of shore excursions because we don’t get paid,” Schreiber said. If it’s a very good client, she added, the agency will occasionally help with third-party excursion bookings.
“The problem is we have a lot of older people traveling on cruises. They don’t have computers, or get so lost they want us to do it for them. This takes away our time for nothing. Goodwill is one thing, but what about our value?”
Fanizzi strongly believes travel agents should not book the non-commissionable cruise line excursions.
“Never book an excursion if you are not getting paid,” he said. “I consider this area a big ‘no respect for my time’ from all cruise lines. Why should I even consider doing this for inflated prices that do not reflect my interest in the customer?”
For groups however, both Fanizzi and Schreiber will book commissionable excursions.
 |
“With groups of eight and up we search for specific excursions for specific ports,” Fanizzi said. “We do not try to provide an entire week’s worth of activities unless a client supports our research and effort with a deposit that is applied to excursions booked with a private company.”
He added that there are private on-site destination experts he’ll book excursions with that pay significantly more than the 6% to 10% commission typically offered by third-party excursion companies.
The cruise line perspective
Some cruise executives believe too much emphasis is placed on commissions for shore excursions – or the lack thereof.
“The cost of administration on the agent side is not worth the commission the agent is going to make on an independent shore excursion,” said Maurice Zarmati, president and CEO of Costa Cruise N.A. “Plus, the agent can’t guarantee the independent operator is going to deliver. If a guest buys the excursion from the ship, the line stands behind it.”
However, recognizing that money does matter, Zarmati made it a point to mention that Costa does pay commission on group shore excursions.
“I don’t think earning a commission should be the only factor in determining whether a travel agent should be booking shore excursions for their guest,” said Bill Smith, senior vice president of sales and marketing for Crystal Cruises.
“Some agents may have a better idea of their clients’ particular desires and may be able to create something special for them. That said, cruise lines are normally better prepared to arrange shore excursions because they have more contacts in the destinations they sail to, which therefore enables them to negotiate better rates and provide a wider choice of offerings.”
