To Boost Cruise Revenues Get Creative

Travel agents are getting creative when it comes to finding ways to boost their cruise revenues.

The key to being successful: Offer services before, during and after the cruise. It’s a win-win for agent and client: Clients get added value and an enhanced experience; agents reap the financial rewards.

Experienced cruise agents shared these tips with Travel Market Report.

Add air, hotel, shore excursions
Unless clients live in a cruise ship homeport, they’ll need air and sometimes hotel when they book the cruise. Still, many agents bypass the cruise lines’ air and hotel offerings.

“Usually, when a client calls and says, ‘This is what I want,’ I never leave it at just booking the cruise,” said Joanne Corman of Avoya Travel, an American Express-affiliated agency in Miami.

“I ask about air tickets, shore excursions, hotels. I encourage pre- and post-excursions. I end up adding five additional things to the cruise. And that can add up to $1,500 more in profits.”

Book air yourself
As for plane tickets, “I never go with air offered by the cruise line,” said Kathy Burns Lamphier, CTC, ACC, owner of Posh Travel, a Virtuoso agency in Greenland, N.H.

“My experience is the cruise line’s air is 20-30% more,” said Lampphier.

To boost profits, Lamphier charges fees of $35 to $50 depending on the destination, to book their tickets. It’s a win-win situation, she said.

“Cruise lines charge a deviation fee if you want to pick your own airline, fly non-stop or go a day early,” explained Lamphier. “By going through an agent, clients can choose the exact flight they want and also use their frequent flyer miles or gold club upgrades.”

Find hotel choices
When choosing hotels for pre- and post-excursions, as well as independent tour operators, Michelle Donner, owner of an Expedia CruiseShipCenter in Fort Lauderdale, relies on an extensive Expedia network.

The network includes thousands of contacts at Expedia’s corporate offices, regional Expedia Cruise Ship Center franchises and nearly 180 other Expedia Cruise Ship Center franchises throughout North America.

“Expedia gives me all the tools to succeed,” said Donner. “I definitely find hotels and tour operators through Expedia.”

Sell car and luggage services
Another way to boost commissions is to sell independent car services for transfers rather than using the cruise lines’ buses or vans, according to Lamphier.

“Plenty of car services will pay commissions,” said Lamphier. “Often a client will pay for a car or limo service if it’s a special occasion — like a man who’s going to ‘pop the question’ — or if it’s a new girlfriend or wife he’s trying to impress.”

Lamphier also gets commissions from using a luggage service that ships clients’ baggage ahead to the cruise line.

“I work with a company called Luggage Free. There’s a fee to the client based on baggage weight,” she said.

“A family of three went to California over Thanksgiving and shipped their luggage ahead. They thought it was ‘sweet,’” recalled Lamphier.

“A professional photographer recently carried his equipment, but shipped his clothes ahead. On a longer cruise, that kind of service is invaluable to the client.”

Encourage third-party travel insurance
For the most part, savvy agents bypass cruise-line cancellation insurance in favor of third-party insurers.

“The cruise line pays 10% commission, but we get 25% to 35% on third-party insurance,” said Scott Kertes, MCC, of Hartford Holidays, an Ensemble member in Garden City, N.Y. “So, it’s in my best interest to sell third-party insurance.”

“Besides, you’re not cheating the customer, you’re often adding value,” Lamphier said.

“With cruise line insurance, for instance, everyone gets charged. But some third-party companies offer complimentary insurance to children under the age of 16 or 18.”
 
A win-win
Some agents also have found third-party insurers to be especially generous and flexible.

“We do our own insurance with Travel Guard,” said Karen Schinke, CTA, ECC, owner of Chocolate City Cruise & Travel, a MAST agency in Burlington, Wisc. “When 9/11 occurred, Travel Guard never batted an eye about clients’ claims.  

“And they didn’t have a problem when clients in South Africa were bitten by a baboon.  They got them to the hospital, got them rabies shots and got them evacuated first class.”

Good service equals repeat business
Donner appreciates higher commissions on third-party insurance, but she likes to check around to get the best deal for her clients.

“The difference between whether they pay $60 or $100 for insurance could mean a difference of only $10 more in my pocket,” she said.

“Most of my clients are well traveled. They want to know that I did the best I could for them.”

Providing the best possible service is, in fact, the most important tip of all.

Recalling how happy a client was with a recent cabin upgrade, Corman said, “Try to be a personal concierge rather than an order taker. In the scheme of things, the upgrade didn’t bring in a lot of money for me. But this woman gave me a hefty commission on the cruise itself.

“Why not show her you’re in her corner?  You’re building relationships with clients, and that pays off in repeat business.”   

 See related story: How to Boost Your Commissions on Cruise Sales