Two weeks ago, P&O Cruises and Cunard sales director Chris Truscott tantalisingly held out the prospect of better commissions for agents. Well, he was good to his word and this week the lines announced an increased basic payment of 7.5%.
Another thing Truscott said was agent remuneration was not about a ‘simple number’. However, for many agents the previous level of 5% will long be etched in the memory.
Maybe we shouldn’t get too hung up on a number, but it was emblematic of what the trade saw as a well-trodden path towards cutting out agents.
That’s why Carnival UK is keen to emphasise all the other things it is doing to assist agents as a result of its Agent Matters programme. No doubt many agents will see the latest commission move as a tacit admission that cutting commission to 5% to stamp out discounting was a mistake.
And, after previously insisting anything higher than 5% would not eradicate rebating, there will be questions about whether discounting is poised to sneak back in. But maybe the shock tactic of moving to 5% worked. Maybe agents are now more willing to put profit before buying market share. We will see.
Carnival UK won’t admit it, but just as many agents felt the pain of 5%, so did both cruise brands in the form of a withdrawal of support and goodwill from valuable trade partners. Now the whip has been withdrawn and replaced with the carrot of increased earnings and rewards, old wounds should start to heal.
And, as we heard from Advantage, it is the overall quality of support that will determine which suppliers get your business.