Advantage agents have demanded action by cruiselines amid claims they cannot sell cruises because they are undercut by deals less than their net prices.
Speaking at a cruise breakout session at the Advantage conference, agents said the situation had become so bad it was now a serious barrier to entering the sector.
Paul Stowe, director of Stowaway Travel, Cheshunt, said: “We are trying to sell cruise but every time we are undercut by someone else. There are agents selling at prices 5% less than net.”
Bryony Hordern, managing director of Tickets Anywhere, Thame, called on cruiselines for help.
She said: “Someone came into my agency with a low quote and we called the cruise company, which said it couldn’t help. If you are trying to get the business, perhaps you [cruiselines] could match it.
“When someone has a price £300 below what you are getting at net there is no way you can build your cruise business up. You cannot sell at less than net.”
But cruiselines maintained agents could compete.
Complete Cruise Solution sales director Giles Hawke said: “Legally we cannot stop anyone from discounting – it’s here to stay. There are a lot of people who don’t offer discounts and do a lot of business. They sell on service.”
He maintained up to 30 agents had increased cruise sales to create multi-million businesses in the last two years despite the discount culture.
The difference in commission earned by agencies only varies by 3-4%, he added, but there are ways for agents to earn bonus commissions, access exclusive deals or package up their own deals with net rates.
Royal Caribbean Cruise Line UK and Ireland general manager Jo Rzymowska agreed. “There is so much agents can do without necessarily discounting to add value.
But Stowe countered: “The service you give them is irrelevant. Don’t give them [agents] such good deals.”
Advantage sales and marketing director Colin O’Neill said the consortium planned to set up central allocation deals with cruiselines to allow members access to better prices. “The whole basis of the consortium is its buying power,” he said.