Midcounties Co-op Travel is backing the lobby against the latest reductions in cruise line commissions.
The Travel Network Group and Advantage have already issued a joint statement to reject the proposed drop in commissions to 10% from 12%-15%.
Julie Gibson, head of commercial and marketing, said the moves by Royal Caribbean Cruise Line and Norwegian Cruise Line to a 10% base rate of commission “penalised” agents who were on the higher level of commissions and sold substantial volumes of the company’s holidays.
“From our point of view, we are standing alongside Advantage, which we are part of, against these moves,” she said.
“We don’t discount to ridiculous levels and this move will have a significant impact on our margins and earnings.”
Midcounties agents on average discounted by around 2% to 4% on cruise bookings, she added.
The co-op is now in talks with RCCL and Norwegian about the moves.
“We have been in a very difficult position,” added Gibson.
“I don’t know what we can do but we are in conversation with the cruise lines. Our business is growing with Royal Caribbean and yet we feel we are being penalised for that growth.”