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Unique Cruise Solutions The news you need to know |
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Cruise News for the Corporate Travel Professional |
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Why Carnival Cruise Fares Are About to Change |
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Bargain hunters may soon have to kiss one
more deal source goodbye: On August 1, Carnival Cruise Lines will make
changes to its "Advertised Pricing Policy," extending its reach and putting the
kibosh on most discounting of Carnival cruises. Here's how the policy changes, which we've boiled down into two main points, will work: 01: Travel agents can only sell Carnival cruises at the set rates provided by the cruise line. Under the current policy, which first appeared in 2005, agents are prevented from publicly advertising discounts but can offer them in person or over the phone. (Typically, a portion of agents' commissions is offered to consumers in the form of lower fares, upgrades or value-added perks -- a strategy known as rebating.) However, as of August 1, agents won't be able to change the prices at all. So, if Carnival says this cruise is $399 a cabin, it's $399 a cabin, the cruise won't sold be sold at a lower price. Interestingly, Royal Caribbean and Celebrity already have similar no-rebating policies, instituted back in 2004, in place, Carnival is now essentially matching those lines' levels of strictness around discounting. 02 Carnival will also restrict the types of value-added amenities offered. If cruise agents wish to offer a "non cash-equivalent value add" (a phrase basically meanings bonus gifts, i.e. transfers, insurance, handouts like wine or tote bags) worth more than five percent of the total cruise fare or $25 (whichever is greater), they will need to have their marketing plans approved by Carnival. Lower-value gifts do not need to be approved. Any perks worth more than 10 percent of the cruise fare are not allowed at all. For cash equivalent gifts -- onboard credit, pre-paid gratuities or gift cards -- agents can offer perks worth a maximum of 10 percent of the cruise fare. However, all cash equivalent gifts must also be approved by Carnival. In an e-mail to travel agents, Carnival explained the purpose of this policy is "to help minimize consumer confusion over pricing and in return increase sales. Prior to the implementation of this policy, consumers were exposed to a variety of price points in the marketplace for the same cruise. This naturally caused them to lose confidence in their purchase decision and the Carnival brand." So, is this change good or bad for you. We've identified both pros and cons: Pros Less shopping around. You simply contact Worldwide and as in the past we will offer you the most competitive rates within the guidelines laid out by Carnival. You won't need to search as many different places for the best deal. Remember, Worldwide also can manage your program for you for no-fee within the new rules. Group rate discounts are still available. They can't be advertised but Worldwide does offer Carnival-approved group rates over the phone, in person and through e-mails. Cons Fewer discounts. Let's face it, although Carnival can lower rates on sailings, the agents have no power to offer you better prices. Fewer perks. Your agent is now limited in all the extras he or she can offer to you with your Carnival booking. |
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Worldwide Travel & Cruise Assoc., Inc. 150 S. University Dr. Ste E, Plantation, FL 33324 - USA Tel: +1 954 452 8800 Fax: +1 954 252 3945 EMail: sales@cruiseco.com |
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Designed & Published by: Worldwide Media. |
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