Recent trends in the cruise industry reveal growing discontent among travel agents due to ultra-low deposit schemes. These promotions lead to increased workloads and high cancellation rates.
- Agents report that these promotions encourage customers to book multiple voyages with the intent to cancel, causing significant operational stress.
- There is a growing concern about the financial implications, as agents face loss of commission due to cancellations linked to these low deposits.
- Cruise lines have been urged to reassess these ‘gimmicky’ promotions, which contribute to customer behaviour that undermines agents’ efforts.
- Industry leaders highlight the need for cruise lines to evaluate the impact of these promotions on both agents and their own long-term customer relationships.
The cruise industry is witnessing widespread dissatisfaction from agents regarding the adoption of ultra-low deposit schemes, which are perceived as detrimental to the agents’ operations. The primary grievance involves promotions wherein customers can book with minimal upfront costs, subsequently leading to a surge in cancellations. Agents find themselves facing increased workloads, as clients often reserve multiple trips intending to evaluate their options later, which eventually results in numerous cancellations.
The frustration amongst agents is palpable as they experience not only an augmented workload but also a direct financial impact. Due to such deposit structures, many agents report a loss in commission, as these bookings frequently culminate in cancellations once prices drop further. Paul Hardwick, head of commercial at Fred Olsen Travel, abstains from encouraging low-deposit bookings, citing notably high cancellation rates and resultant financial losses, ‘I’m not a fan of low deposits. The cancellation rate…is really high and I would avoid them as much as possible because we don’t get paid.’
Emma Otter, representing Travel Counsellors, regards these ultra-low deposits as mere ‘gimmicks,’ calling for a thorough examination by cruise lines of the consequences these strategies yield. She points out that such tactics inadvertently condone time-wasting, ‘I would love [lines] to review the cancellation rate…people even admit they’re happy to book and lose the deposit money. It’s disheartening as it is encouraging time-wasting.’
Insiders like Alison Earnshaw from World Travel Holdings have observed how shrewd customers exploit these low-deposit opportunities as placeholders. It allows them to track price variations, and if advantageous, they readily cancel and rebook at lower prices, adding to the operational strain on agents. This dynamic underscores the pressing need for a reevaluation of promotional strategies by the cruise lines to safeguard both the agents’ interests and their own customer satisfaction.
Industry calls are mounting for these cruise operators to reassess their promotional tactics. Such evaluations would ideally consider the long-term impact on agency relationships and overall market behaviour, which is currently being moulded by these temporary and often disruptive measures. The overarching sentiment is clear that both agents and cruise lines would benefit from a more sustainable and mutually rewarding approach.
It is imperative for cruise lines to reassess promotional strategies that negatively impact both agents and long-term customer relations.
