Cruiselines are facing a “drumbeat of resentment” from agents in the US over the growth of non-commissionable fees, according to Travel Weekly US editor in chief Arnie Weissmann.
Speaking at a European Tour Operators Association conference in London today, Weissmann said agents were reacting against increasing levels of non-commissionable fees, such as taxes or port fees.
He said: “Agents are not making as much money from cruise any more because of these fees, especially since the price of cruising has dropped heavily. There has been a drumbeat of resentment against the fees and [land] tour operators have been very good at taking advantage of that resentment.”
The results of a Travel Weekly US survey release last week of 1,543 agents revealed that more than half (54%) expect to sell more ocean cruises next year, down from 58% a year ago.
The survey showed an increase in the number of traditional package holidays booked. Some 91% of packages booked by US agents this year were from traditional tour operators, rather than dynamic packages or airline-branded packages – that’s 3% more than last year.
Weissmann also investigated why some agencies in the survey had suffered more than others in the recession. He said: “The way agencies reacted to the difficult market was key. Those who cut their marketing, reduced staff hours and cut staff numbers saw a greater decline. Those who moved aggressively forward were more successful.”
The trade will benefit from the baby boomer generation reaching retirement age, he added. “Tour operators, cruiselines and travel agents will keep each other buoyed through the baby boomer years.
“After that, if new blood isn’t brought into the industry, who will show how agents can add value, agents will be under pressure and in decline.”