CruiseOne and Cruises Inc. are "having a great year" with a repeat rate at an all-time high of 44 percent, a 38 percent increase in land sales year-over-year and an almost 18 percent jump in luxury business, Debbie Fiorino, senior vice president of the travel agency networks said Monday.
She made her comments at the second day of the CruiseOne/Cruises Inc. national conference taking place on Princess Cruises' new Regal Princess.
Fiorino reported the positive news even as concern lingers over dramatically lower cruise fares. However, there are optimistic signs of pricing recovery as ships depart the overcrowded Caribbean for homeports in Europe, the Gulf of Mexico and Southern California.
"We knew it was going to be a bloodbath this year and it was, especially in the fourth quarter," said David Crooks, senior vice president of product and operations for parent company World Travel Holdings, when he opened a panel discussion with cruise line executives.
But Crooks and others agreed that things are looking up as cruise ships move away from South Florida this spring, easing the battle for last-minute travelers willing to book a cabin for as little as $100 for short cruises.
Both Crooks and a travel agent in the audience thanked cruise executives for innovative pricing packages that added value such as onboard credit, beverage packages or prepaid gratuities instead of slashing prices. These promotions - including Celebrity Cruises' "1-2-3 Go!", Norwegian Cruise Line's All-Inclusive Package and Holland America Line's "Explore4" - give travel agents higher commissions and attract cruisers who appreciate the value of the extras.
Michelle Homoky, Celebrity's director of field sales for the Eastern U.S., said in a separate presentation that the "1-2-3 Go!" promotion helped lift the premium line to its best year ever. "Agents are selling so much further in advance," she said during the panel discussion. "Everyone is making more money."
MSC Cruises' Executive Vice President Ken Muskat pointed out his line's new pricing levels, which let consumers decide the level of extras they want included in their cruise fare. MSC Cruises' new pricing plan is permanent, while most of the other value-added promotions are available for a limited time.
To stimulate more bookings further in advance, MSC Cruises is offering an 18 percent commission on all groups of eight or more staterooms booked by Jan. 15. The promotion also offers a waiver of good faith deposit until March 31, up to $100 shipboard credit per balcony stateroom, one free tour conductor berth for 13 full-fare guests, and two amenity points good for cocktail parties, bonus commissions, marketing funds and more. The deal is good on MSC Divina Caribbean cruises departing Nov. 11, 2015, through April 9, 2016.
"Travel agents can block their group space now and fill it in during the Wave Season," Muskat said.
Crooks also congratulated Carnival Cruise Lines' Joni Rein for making it a point to put more travel agents on their ships. "The feedback's been terrific," Crooks told Rein, vice president-worldwide sales for the Fun Ship line. "They said the food was great, and the service was great."
Travel agents also raised concerns over casinos that offer free or highly discounted cruise promotions as rewards to high rollers, which bypass travel agents, as well as super-discounted deals offered by online discounters or companies such as Costco.
The executives said they are looking into the casino promotions and would consider paying a commission to agents who book them on behalf of clients. They also said they regularly investigate discounters who offer cheap fares that are lower than what is allowed by anti-rebating policies. "We do not let anyone price lower than the marketplace," said Charlie Dunwoody, senior director of national accounts for Holland America Line and Seabourn.
"It's OK to be a whistleblower" and to alert Carnival to anything suspiciously low, Rein said.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
