HOW TO GET THE BEST DEAL ON A CRUISE
TO GET A GOOD DEAL on a cruise, know the players and how the game is played. In the case of cruising, game rules pivot on the unalterable reality that a cruise is a time-sensitive product. If a cabin is not sold by sailing time, it loses all of its value. This makes selling cruises like playing Beat the Clock. From the time a cruise is announced, the line is on a countdown to sell all the cabins. The immense expense of operating a cruise ship makes the selling a highpressure, big-stakes endeavor. Yet, for 2007 and beyond, lines are running well ahead of the norm in advance bookings, and this is tightening up the availability of discounts.
For consumers, the time sensitivity is a major plus. Any time a dealer must make a sale or write off the inventory (empty cabins, in this case), wheeling and dealing are likely, and this almost always benefits the buyer. However, we emphasize that there’s more to buying a cruise than its price. If you allow yourself to be influenced only by “getting the best deal,” you are likely to end up on the wrong cruise. Talk to your agent and evaluate all factors.
Note that in American ports, it is no longer possible to show up at the dock, suitcase in hand, and negotiate a last-minute fare with the purser. For security reasons, cruise ships must submit passenger manifests to the FBI about a week prior to departure.
The Players: Cruise Lines
Lines have sales offices and, more and more, Web sites that can sell cruises directly to consumers. But as many as 95% of all cruises are sold through travel agents or other players, and you usually get a better price by buying from them. To their credit, cruise lines are loyal to those who sell their product and usually won’t undercut the prices available to them. Practically, the lines don’t want the bother, and until the Internet came along, it wasn’t cost-effective. It costs cruise lines far more to maintain sales offices to serve the general public than it does to maintain a sales network through travel agencies and Internet sellers (which are expected to increase to 25% over the next few years). Note, however, that sales directly to consumers on the Internet are not necessarily at a discount.
But now many lines have “equalized” pricing and will penalize and even ban agencies from selling their products if they advertise a lower price. Carnival Cruise Lines, saying that it “would rather have thirty-five thousand people selling Carnival than ten,” closed ranks with the little guys by offering the same prices to all of its accounts. Royal Caribbean has gone even farther: whether small agencies or giants, it announced recently it would no longer deal with any agency that is found undercutting prices by rebating commissions. In addition, Celebrity, Oceania Cruises, and Norwegian Cruise Lines now have similar antirebating practices. Other major lines say, off the record, to be prepared for others to follow suit. For now, some lines continue to offer large operators preferential pricing, but that practice is dwindling. To gain an even greater advantage, the big sellers also use their extensive resources to gobble up blocks of cabins at group rates and then resell the cabins one at a time to individual travelers. That too may eventually become passé as major lines are beginning to forbid this practice as well. They hope to stabilize prices and avoid abuse of their policies.
The smaller agencies are also smacked by the way the cruise lines handle “distressed inventory,” for example, cabins yet unsold as the sailing date for a cruise approaches. Once again, not unexpectedly, these bargain-basement goodies are sometimes handed over to the line’s big-volume brick-and-mortar and Internet accounts to move. Although most of us like to root for the underdog, it’s tough to walk away from the great prices offered by larger sellers. It’s worth remembering, however, that the big guys usually can’t compete with a good hometown travel agent when it comes to service, accessibility, and peace of mind.
With the cruise industry expanding exponentially, be alert for foreign cruise lines and new cruise lines trying to break into the American market. Sometimes these lines offer incredible deals to lure customers from the United States. In 2005, for example, the then-new Italian Line, MSC Cruises, offered seven-night Caribbean cruises for as little as $545 for an inside cabin and $945 for a balcony stateroom. Your travel agent may not be familiar with new players in the market, so you’ll probably have to ask or do some research on your own, and you may want to use a cruise-only agent who knows a host of cruise products.
The Players: Wholesalers and Megasellers
Wal-Mart founder Sam Walton taught Americans that the more of something you buy, the lower the price should be. Businesspeople call it buying in quantity or volume discounting. In cruising, travel wholesalers and megasellers are volume buyers. Booking well in advance, they buy large numbers of cabins on specific cruises with the intention of reselling the cabins at a profit. Advance purchasing and volume discounts, coupled with the fact that the cruise lines do not have to pay commissions, allow them to buy at prices substantially below what an individual could obtain. Some cabins that go unsold can be returned to the cruise company by a certain date; others are bought on a nonreturnable basis. In the latter case, the wholesaler or megaseller absorbs the costs of any cabins that aren’t sold. The biggest cruise discounts available to any player go to those who buy cabins in bulk on a nonreturnable basis. Wholesalers sell to travel agents and, often, like megasellers, directly to consumers. If the wholesaler sells a cruise through a travel agency, then the wholesaler pays the agent a commission.
Note that these players generally deal with lines having large ships, or they offer the best deals on a limited number of ships and lines. If they spread themselves too thinly over the spectrum of cruises, they diminish their clout with specific lines. Remember: it’s in the wholesaler’s or megaseller’s interest to steer you to ships where they get the best deal. That may or may not be in your best interest.
The Players: Travel Agents
Travel agents act as sales representatives of the cruise lines. Unlike wholesalers and consolidators, they don’t buy cabins. Instead, they sell from the line’s inventory, on commission. Like cruise lines and wholesalers, however, agents earn the most when they sell in volume. Some full-service travel agencies specialize in cruises, whereas others are cruise-only agencies, selling nothing but cruises and cruise-related travel. The latter sell so many cabins for certain lines that they earn “override commissions”—a higher percentage level of commission over the norm. There is usually a volume threshold where the override kicks in. Some general travel agencies and independent agencies cash in on override commissions by joining a consortium—a group of agencies that pool their sales to receive the overrides.
To make the most in commissions and overrides, some agents push selected cruise lines, known in the industry as preferred suppliers. If the line that interests you is among your agent’s preferred suppliers, great. If not, your agent may try to interest you in a line with which the agency has such an arrangement. However, a good agent who wants to stay in business will never put a customer on an inappropriate cruise just to earn one commission check. Remember, agents rely heavily on good word of mouth for their business. Their goal is to satisfy you, so you will come back. Most will sell you any cruise if you specifically ask for it.
Because most cruises are sold by travel agents, it is critically important for cruise lines to develop extensive systems of loyal travel agents. Competition among cruise lines to influence agents is so heated that consumers sometimes become pawns in a marketing chess game. Over the years, for example, Holland America has awarded its agencies bonus points redeemable for chocolate, picnic lunches, dinners in local restaurants, or any number of other choice perks. Such incentives may influence agents’ recommendations and narrow consumers’ choices. All cruise lines are not necessarily a good fit for all of an agent’s customers. Good agents place their clients’ needs and preferences first, but some agents go for the largest commissions and the most goodies.
As we noted earlier, in the past, many agents sacrificed part of their commission or override to make a cruise more affordable to a good customer and to compete with large-volume discount agencies. Some agencies selling cruises in volume still take lower commissions to underprice other agencies. But again, recent cruise-line policy changes have cut these practices but have not eliminated them. In many locations, competition among agencies for cruise business is as keen as it is among cruise lines, particularly with the proliferation of cruise-only agencies and large Internet sellers. And now, with airlines having decreased agents’ commissions, the competition for cruise business has grown even hotter.
In the final analysis, buyer beware. Protect yourself best by developing a long-term relationship with a knowledgeable travel agent who works to put you on the cruise that’s right for you. HELPING YOUR TRAVEL AGENT HELP YOU When you call a travel agent, ask whether he or she has cruised, how many times, and on what lines. Firsthand knowledge is invaluable. If the answer is no, find another agent or be prepared to give your agent copious direction. Ask who your agent’s preferred vendors are. Just asking that question will tell the agent you are a savvy buyer. Compare the agent’s recommendations with information in this guide. Request permission to contact other clients who have been on the cruise line recommended, and ask your friends. Someone you know may have sailed on the line. Also check the independent cruise Web sites listed earlier under “Gathering Information.” These sites feature cruise reviews from both travel writers and the general public.
To help your travel agent obtain the best possible deal, do the following things: 1. Determine from brochures, friends’ recommendations, the Internet, and this book a general idea (a framework, if you will) of where and when you want to cruise, which lines offer the kind of cruise that most appeals to you, and how much you can spend. Remember that your cruise tickets are only a part of your costs. Budget also for air travel and for shore excursions, alcoholic beverages, tips, and shopping. Many a cruise passenger has rung up an onboard credit account that rivals the cost of the cruise itself.
2. Check cruise ads in the Sunday travel section of your local newspaper and compare them to ads in the newspapers of a key cruising market (New York, Philadelphia, Los Angeles, Phoenix, Dallas, Chicago, Boston, Washington, or Atlanta) near you. Look for deals that fit your plans and that include a line you like. Also, read ads in specialty magazines, such as Cruise Travel and Frommer’s Budget Travel, and check out Internet sites selling discounted cruises.
3. Call consolidators or retailers (including Internet sites) whose ads you have collected. Ask about their offers, but do not book your trip with them directly.
4. Tell your agent about cruises you find, and ask if he or she can match or beat the price or provide any “added value.” Some producers may offer a bottle of wine, a fluffy robe, or another perk. Be aware that promotional ads are often bait to get your attention. The “lead” price probably applies to a limited number of cabins on a specific sailing. This element is probably the trickiest part of obtaining the best deal. Every ship has 6 to 20 categories of cabins. Often, unless you can pinpoint the date, itinerary, and cabin category being advertised, it may be hard to know whether you are getting a good deal. Nobody said this was easy.
5. Choose among options uncovered by you and your travel agent. Whatever option you elect, have your agent book it. It may be commissionable (at no additional cost to you) and will provide the agent some return on the time invested on your behalf. Also, your agent should be able to help you verify the quality and integrity of the deal, and be there to assist if any glitches arise.
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