Carnival Modifies U.S. Travel Agent Commission Tiers In 2013
By Theresa Norton Masek
September 19, 2012 3:05 PM
Carnival Cruise Lines said it will modify U.S. travel agent commission tiers for new bookings starting on Jan. 1, 2013, but says the majority of travel agents will not see a change in their current commission level. Additionally, the basis on which commission percentages are determined for each agency will be modified. Commission percentages will continue to be based on volume instead of revenue and will be based on net cabin volume in 2013 rather than the current seven-day equivalent volume structure.
“This change is the result of agency feedback which indicated that the seven-day equivalent structure was cumbersome and confusing,” the company said in a statement. “With the new modifications in place, travel agent commission tiers will now be more in line with the marketplace, as well as reflect Carnival’s 50 percent capacity growth during the past 10 years.”
The change will not impact business sold during 2012 for 2013 or 2014 sailings. This is the first modification to commission tiers Carnival has made in 10 years
The new tiers are 10 percent for up to net 49 cabins sold, 11 percent for 50 to 99 cabins sold, 12 percent for 100 to 199, 13 percent for 200 to 299, 14 percent for 300 to 399, 15 percent for 400 to 999 and 16 percent for 1,000 cabins.
At www.GoCCL.com, Carnival’s travel agent site, a Q&A on the changes said Carnival considered changing to a revenue-based tier structure like some of its competitors. “We did consider it, but decided not to change this as we believe we should protect travel agent partners from material changes in price that are not within their control,” the line said.
“We rely on and appreciate the support of travel agents and remain fully committed to helping them grow their businesses,” said Lynn Torrent, executive vice president of sales and guest services for Carnival Cruise Lines. “Most North American cruise brands have decreased capacity in the U.S. as they’ve substantially increased international sourcing and deployment, while Carnival remains focused on the U.S. market. As such, Carnival pays more commission to U.S. travel agents than any other cruise brand, and the vast majority of our guests are sourced from the U.S. which continues to create huge earnings opportunities for domestic travel agents.”
For more information on the compensation changes, travel agents can visit www.GoCCL.com, contact their business development manager or contact Carnival’s trade engagement department at email@example.com or 800-327-7276.
Carnival’s move comes shortly after luxury line Regent Seven Seas Cruises amended its commission structure. Regent, however, decided to no longer pay commission on government taxes and fees and to add more NCFs to its inclusive fares.