by Robin Amster
Last updated: 3:54 PM ET, Thu November 19, 2015
Suppliers continue to chip away at their relationship with travel agents, despite the rhetoric that agents are a critical and valuable part of their business.
Encouraging consumers to book with them directly is one way they damage the relationship. There are other ways, including Disney Cruise Line's move earlier this month to cap agent commissions for onboard bookings at 10 percent.
This time a major agent network has taken a strong stance against these kinds of actions and in doing so is sending a powerful message. The luxury travel network Virtuoso has dropped Disney as a preferred supplier.
With its large international network of more than 9,800 travel advisors in North and South America, the Caribbean, Europe and Asia Pacific; the $14 billion a year worth of travel those advisors book, and its focus on luxury travel, Virtuoso is both highly visible and highly regarded. It had a 14-year relationship with Disney, which was one of its 21 preferred cruise partners.
Virtuoso said its members routinely earn commissions much higher than the cap allows for existing clients who book their next cruise while still onboard the ship. It called Disney's action "unfortunate" and added that its "guiding principle" is to concentrate on partners who support the agency community.
Albert Herrera, senior vice president, Global Product Partnerships at Virtuoso, told TravelPulse that "Virtuoso's mission statement is to utilize the assets of the network to increase the compensation and personal fulfillment of the front-line travel advisor. We will always advocate strongly on behalf of travel advisors."
"Virtuoso and its advisors are well poised for success with so many partners who recognize and reward the value of the travel advisor channel," Herrera added.
That last statement is surely saying that Virtuoso doesn't need to partner with those cruise lines . . . . or tour operators . . . or any other supplier that doesn't recognize the importance of agents. Whether other consortia can-or are in a position to-take the same action remains to be seen. But either way, Virtuoso's repudiation of Disney should give other suppliers something to think about.
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