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February 2008
Supplement to Travel Trade

Flips & Flops

FLOPS are coming in from all over about currency exchanges. Dave Annis from Duncan Travel in British Columbia stated that when Princess Cruises quotes Canadian rates, they are still using the exchange rate of $1.15. That rate was set last spring and since then the value of the Canadian dollar versus the American dollar has changed so that they are almost even — and have been for some months. Therefore, Princess still surcharges Canadian bookings at 15% if they are in Canadian funds. This can result in additional charges of hundreds of dollars. He cited a $600 difference in one balcony booking because of this outdated surcharge. Also, David points out, Princess will change Canadian future cruise deposits to US dollars if you ask, and if you get the right reservations agent.
Agents have to make certain they have all the disclaimers listed properly when invoicing their clients, otherwise they deserve a FLOP. Some Europe tour operators are now adding a currency conversion charge of up to 10%. Also, fuel supplement charges and tax fluctuations are on the increase.
And a month doesn’t pass when someone asks for an explanation of what cruise line non-commissionables really are. It’s easier to answer questions like “Why is the sky blue?” than to get a non-com definition. Yes, the non-coms are increasing, but so are all the operating costs. I’m sure this question will be asked in an open forum of the cruise line execs at Travel Trade’s CRUISE-A-THON in Vancover, May 15-17. (register at www.ttshows.com).
Another FLIP or FLOP is for certain cruise lines offering free or discounted air promos. Usually when you add it up, they have raised the rate on the cruise (a FLIP because the commission is higher). But when they offer a lower rate on the cruise, plus the good air program, agents get stuck making less money.
One cruise line recently offered a 4-day sale — open to the public or to the booking agent. The rate the day before the sale, without offering free air, was just about the same as it was with the free air. Here’s where the agents have to do their homework and take out the calculator and figure out the commissions on both.
A FLIP to Trip Insurance. With so much lost luggage being reported, they suggest you take a picture of your luggage before you leave. They feel it will speed up the process to identify it or to prove your loss. A good tip. Some clients are reporting they are also taking pictures of the contents.
A FLOP for Ryanair, a low cost air carrier in Europe. Their current air campaign for the “hottest back-to-school fares” featured a provocatively dressed schoolgirl. The European agency that regulates advertising had received many complaints about the ad and ordered the media not to run it. Ryanair successfully fought the ruling, as only a European company can, and called the regulatory agency a bunch of “self appointed dimwits.”
A FLOP for Air Europa. Even though they have representation in the US, any complaints will not be accepted by phone, only in writing. And those are totally ignored. An agent reported that air tickets she issued through a GDS were not accepted in Barcelona. And the clients were charged an additional $500 for tickets in order to board. When the agent contacted Apollo, they said the tickets are good and there was no reason for Air Europa to deny boarding. Plus, their investigation has also confirmed that the airline would not respond.
A surprising FLOP for a statistic provided by IATA. Steve Lott, its communications director in Washington, estimates that 35,000 flyers are turned back at their destinations because of faulty documentation. Hopefully, the majority of those are do-it-yourselfers— people who do not work with travel agents.
A FLIP to agent Margaret Fallone from Rosie Moments Travel in Harrison Township, MI. Along with the final docs, she gives out a Baggies-type bag, with her agency name on it, and the information on how liquids in certain containers should be put into the bag. Margaret is constantly educating her clients. Such an easy and inexpensive idea. Kudos to her. Methinks that soon an incentive company will come out with imprinted reusable plastic bags, sold in bulk, to travel agencies.
A FLOP to Norwegian Cruise Line for making agencies choose either paper docs or e-docs. First-time cruisers should always receive only paper docs. It adds to the excitement of the cruise. You can’t ask people to spend hundreds or thousands of dollars and get two or three pieces of paper. New cruisers may interpret that as the type of service they are going to receive. Frequent cruisers should be offered the choice.
On the other hand, Princess’s pre-cruise documents are far too heavy for mailing, and redundant for past passengers of the cruise line. Plus, if you have a group booking, you’ll get a hernia just lifting the package.
Speaking of Princess groups, their group commissions are paid in conjunction when the final payments are processed. So if you call in four final payments one day and three weeks later call in an additional four payments, it may result in two commisison checks. The FLIP side is that you are paid timely. The FLOP side is that the commissions are put through NPC and a service fee is put on every check. Can’t this be worked out?
Karen Bray from Cruise and Leisure Travel in Sonoma, CA submitted a FLOP because Princess cancelled their Sydney-San Francisco itinerary and replaced it with a longer one. They wouldn’t protect her commission on already booked cabins. But they did offer $50 for her trouble if the clients rebook, and nothing if they didn’t.


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CRUISE A THON 2008


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