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Royal Caribbean agrees terms with groups that opposed cuts

Royal Caribbean Cruise Line has appeased the two travel consortia that opposed its move to cut base rate commission to 10%.

Advantage and The Travel Network Group issued a joint statement in October saying they rejected the proposed changes to commercial terms.

Both agency groups continued discussions separately and this week Royal Caribbean claimed it had agreed commercial terms.

Jo Rzymowska, Royal Caribbean’s UK general manager, said: “We had follow‑on discussions and we are in a good place with both of them.

“We have done a lot to make sure we can work with our partners to get greater price clarity in the marketplace.

“Overall commercial terms are individual, but we have moved from 15% to 10% and are not making any exceptions for any of our partners.”

The Travel Network Group confirmed to Travel Weekly it had signed a deal, while Advantage said it was “absolutely confident” a deal was imminent following “positive discussions”.

Julia Lo Bue-Said, leisure director at Advantage, said: “A deal has got to work both ways. Providing we can achieve that I will be comfortable that we will be in a position to work with Royal in a positive manner.”

Bue-Said said she was pleased with the way Royal Caribbean reacted to the initial joint statement, adding: “Jo has been exceptionally supportive.

“They want trade support and we want to see how we can help them.”

Gary Lewis, managing director of The Travel Network Group, said he was “pleased to have come to an arrangement”.

“Where Royal Caribbean are targeting discounters, they should just be targeting the discounters and not disadvantaging members who have always supported them. Why would we continue to sell a complex product that is time-consuming for little return?

“It’s new-to-cruise customers that cruise lines want and they need retailers to get them so should be supporting them.”

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