What do you think is a TA's commission?

I'm sure there are a lot of variables in the equation, and some TAs
focus more on one line than another to build volume, a relationship, and
better pricing. But it seems to me that the biggest "discount" possible
from one TA to another is a small number -- perhaps a percentage of the
commission.

The commission is probably about 10%... and when a particular cruise
needs bookings the number goes up to get TAs to focus on it.

What do you think?
What do TAs know?

Ike

if I'm treading on holy ground... offending someone... violating TA
ethics... exposing TA secrets...

ok.

If we're guessing, my bet would be much less than 10%. My guess for
on-line agencies like vacationstogo.com would be around $50 to $65
per booking.

Pete

"Ike" wrote

I'm sure there are a lot of variables in the equation, and some TAs focus
more on one line than another to build volume, a relationship, and better
pricing. But it seems to me that the biggest "discount" possible from one
TA to another is a small number -- perhaps a percentage of the commission.

The commission is probably about 10%... and when a particular cruise needs
bookings the number goes up to get TAs to focus on it.

What do you think?
What do TAs know?

Ike

if I'm treading on holy ground... offending someone... violating TA
ethics... exposing TA secrets...


Yeah... we are sending the black helicopters to your house right now. vbg

Most cruise lines pay TA's a base commission of 10%. The more volume you
do, the higher the commission. Usually, the most a good, average sized
travel agency can hope for is around 15%. Anything paid over 10% is called
an "override". Some of the mega sites get up to 17% and possibly more, but
their volume is so high that you could count these agencies on both hands.
(Travelocity, Expedia, Cruise.com, etc)

There are other variables. Belonging to a consortium can help, not so much
with higher upfront commissions but with lower levels of volume that would
give you overrides at a lower level. Cruise lines seldom raise commission
levels to stimulate sales. At most, they will offer your normal commission
plus a bonus of $25 or $50 per booking... but that doesn't happen very
often.

Of course, not all of your fare is commissionable. On a $700 cruise, up to
$200 + of that may be "non-commissionable fares" and taxes so the TA gets
commission on $500. At 10%, that is $50 instead of $70.

Do some travel agents focus on fewer cruise lines to raise their commission?
Absolutely. A million dollars in volume with one cruise line might get you
15%. A million dollars spread out over 10 cruise lines will probably keep
you at 10% on all of them. The goal is to sell enough different kinds of
cruise lines to provide a variety of products that will satisfy that
agency's customers.... while still selling enough volume on enough cruise
lines to make a decent override. If an agent is making 15% on ever cruise
line, he/she probably could stand to add more product into the mix. If an
agent is getting 10% on everything, he/she could probably stand to drop a
few cruise lines and concentrate sales in these "preferred suppliers".

By telling you all this, I may have broken some SSTA Secret Code so if you
don't hear from me in a few days, send out the search parties. vbg


--
George Leppla http://www.countryside-travel.com

Cruise Specials BLOG http://www.countryside-travel.com/3834677_6105.htm
October 29, 2006 - SLEAZY 4! http://cruisemaster.com/sleazy4.htm
February 10, 2007 - Valentine's Group - http://cruisemaster.com/grandeur.htm

And if my T/A didn't lie to us, even though we had to cancel a paid in full
HAL cruise last year, she claimed that she didn't receive ANY commission.
--
DG in Cherry Hill, NJ

"George Leppla" wrote in message
news

Yeah... we are sending the black helicopters to your house right now.
vbg

Most cruise lines pay TA's a base commission of 10%. The more volume you
do, the higher the commission. Usually, the most a good, average sized
travel agency can hope for is around 15%. Anything paid over 10% is
called an "override". Some of the mega sites get up to 17% and possibly
more, but their volume is so high that you could count these agencies on
both hands. (Travelocity, Expedia, Cruise.com, etc)

There are other variables. Belonging to a consortium can help, not so
much with higher upfront commissions but with lower levels of volume that
would give you overrides at a lower level. Cruise lines seldom raise
commission levels to stimulate sales. At most, they will offer your
normal commission plus a bonus of $25 or $50 per booking... but that
doesn't happen very often.

Of course, not all of your fare is commissionable. On a $700 cruise, up
to $200 + of that may be "non-commissionable fares" and taxes so the TA
gets commission on $500. At 10%, that is $50 instead of $70.

Do some travel agents focus on fewer cruise lines to raise their
commission? Absolutely. A million dollars in volume with one cruise line
might get you 15%. A million dollars spread out over 10 cruise lines will
probably keep you at 10% on all of them. The goal is to sell enough
different kinds of cruise lines to provide a variety of products that will
satisfy that agency's customers.... while still selling enough volume on
enough cruise lines to make a decent override. If an agent is making 15%
on ever cruise line, he/she probably could stand to add more product into
the mix. If an agent is getting 10% on everything, he/she could probably
stand to drop a few cruise lines and concentrate sales in these "preferred
suppliers".

By telling you all this, I may have broken some SSTA Secret Code so if you
don't hear from me in a few days, send out the search parties. vbg


--
George Leppla http://www.countryside-travel.com

Cruise Specials BLOG http://www.countryside-travel.com/3834677_6105.htm
October 29, 2006 - SLEAZY 4! http://cruisemaster.com/sleazy4.htm
February 10, 2007 - Valentine's Group -
http://cruisemaster.com/grandeur.htm

few cruise lines and concentrate sales in these "preferred suppliers".

By telling you all this, I may have broken some SSTA Secret Code so if you
don't hear from me in a few days, send out the search parties. vbg




They are coming to take YOU away HAHA, they are coming to take YOU away
HEEHEE

LOL, but my question is there a cap to commission. ??? If a TA books a couple
on a World Cruise for a total price of say $150,000 does the agency get the
full 10% (assuming they were at the 10% level to start with).

Dick G wrote:
And if my T/A didn't lie to us, even though we had to cancel a paid in full
HAL cruise last year, she claimed that she didn't receive ANY commission.
usually when it's time to get paid every month I usually tell them, "No
thanks, keep it, I'll work for free."

Bill

--
Visit my Caribbean Princess website:
www.cruisingthecaribbeanprincess.com

Thus spake "George Leppla" :


"Ike" wrote

I'm sure there are a lot of variables in the equation, and some TAs focus
more on one line than another to build volume, a relationship, and better
pricing. But it seems to me that the biggest "discount" possible from one
TA to another is a small number -- perhaps a percentage of the commission.

The commission is probably about 10%... and when a particular cruise needs
bookings the number goes up to get TAs to focus on it.

What do you think?
What do TAs know?

Ike

if I'm treading on holy ground... offending someone... violating TA
ethics... exposing TA secrets...


Yeah... we are sending the black helicopters to your house right now. vbg

Most cruise lines pay TA's a base commission of 10%. The more volume you
do, the higher the commission. Usually, the most a good, average sized
travel agency can hope for is around 15%. Anything paid over 10% is called
an "override". Some of the mega sites get up to 17% and possibly more, but
their volume is so high that you could count these agencies on both hands.
(Travelocity, Expedia, Cruise.com, etc)

There are other variables. Belonging to a consortium can help, not so much
with higher upfront commissions but with lower levels of volume that would
give you overrides at a lower level. Cruise lines seldom raise commission
levels to stimulate sales. At most, they will offer your normal commission
plus a bonus of $25 or $50 per booking... but that doesn't happen very
often.

What I've seen lately is things like "book a client on a cruise using
their Amex and get a $10 Amex gift card". A little co-branding. I
guess that Amex lowers their rate to the line and tosses in the
giftcards. I don't know, most of my clients use MC or VISA. Although
one wanted to pay for an airline ticket in cash.


Of course, not all of your fare is commissionable. On a $700 cruise, up to
$200 + of that may be "non-commissionable fares" and taxes so the TA gets
commission on $500. At 10%, that is $50 instead of $70.

The trick is, that $1100 suite still has the same $200 NCF & taxes. So
the TA gets more for the upsell. Which is also to the line's obvious
advantage.

The "sad" part is when I sell a cabin for $900 that was $800 last
week. Yes I make more money, but if the wafflers had made up their
mind last week, they'd have saved money and I'd look good to them. And
for me, looking good is how I get repeats. (Of course, if you saw me,
you'd question the "looking good" part).


Do some travel agents focus on fewer cruise lines to raise their commission?
Absolutely. A million dollars in volume with one cruise line might get you
15%. A million dollars spread out over 10 cruise lines will probably keep
you at 10% on all of them. The goal is to sell enough different kinds of
cruise lines to provide a variety of products that will satisfy that
agency's customers.... while still selling enough volume on enough cruise
lines to make a decent override. If an agent is making 15% on ever cruise
line, he/she probably could stand to add more product into the mix. If an
agent is getting 10% on everything, he/she could probably stand to drop a
few cruise lines and concentrate sales in these "preferred suppliers".

By telling you all this, I may have broken some SSTA Secret Code so if you
don't hear from me in a few days, send out the search parties. vbg

You carry the shovel, I'll carry the shotgun. :-)
--
dillon

Could have been is in the past
Could be is in the future
There is only the now

Thus spake "Dick G" dickdotgoldhaber@gmaildotcom :

And if my T/A didn't lie to us, even though we had to cancel a paid in full
HAL cruise last year, she claimed that she didn't receive ANY commission.

Cancellations are typically not protected.
--
dillon

Could have been is in the past
Could be is in the future
There is only the now

"Dick G" dickdotgoldhaber@gmaildotcom wrote in
:

And if my T/A didn't lie to us, even though we had to cancel a paid in
full HAL cruise last year, she claimed that she didn't receive ANY
commission.

That happens, they recall the commission, honest, it has happened to me,
and I dare say to every other agent you will encounter


--
Joseph Coulter
Cruises and Vacations
http://www.josephcoulter.com/

George Leppla wrote:


By telling you all this, I may have broken some SSTA Secret Code so if you
don't hear from me in a few days, send out the search parties. vbg

Thanks for such a thorough and honest answer, George. I never really
thought about asking my TA, but it's good to have a better understanding
about how the process works. I appreciate your candor.

~ Peri