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Q: Group Discounts on Cruises ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Group Discounts on Cruises
Category: Business and Money > Advertising and Marketing
Asked by: jmhines123-ga
List Price: $25.00
Posted: 06 Jan 2003 14:09 PST
Expires: 05 Feb 2003 14:09 PST
Question ID: 138430
I want to know what kind of discounts are generally available from the
cruise lines when the purchaser is buying many rooms.  When do group
discounts kick in, how big can they get?  What kind of discounts would
the buyer of 200 rooms on one cruise get compared to someone who was
buying, say, 2000 rooms from the same line spread over a years worth
of cruises?

Great answers get great tips!
Answer  
Subject: Re: Group Discounts on Cruises
Answered By: digsalot-ga on 06 Jan 2003 15:28 PST
Rated:5 out of 5 stars
 
Hi there

Well, as I open this answer, I had better get ready to duck and run. 
It may amaze you to know that cruise lines do not offer discounts
regardless of the number of staterooms you want to reserve.  Yet, you
can find discounted cruising offered by most agents.

It sounds as though there is something slippery about that statement
but you will find that the answer makes sense and is fairly straight
forward when you understand the reasoning behind it.

Let's invent a scenario.  Actually I don't have that much imagination,
so I will be paraphrasing a scenario and then send you to the website
where you can find the full version.  Fair enough?

If "X" travel agency calls a cruise line and asks about the price of a
room on a particular ship and itinerary, the cruise line may quote him
a $1000.  If super-Mega-Nationwide travel agency calls the same cruise
line and asks the price for the same rooms and the same itinerary,
they too will be given the same price, $1000.
If you call them yourself and ask for just one of the rooms on the
same ship and itinerary, you will be told it is a $1000.  There is no
difference to anybody regardless of the size of the purchase.

The difference is that "X" sells five cruises a year and gets maybe a
10% commission.  Super-Mega may sell thousands and is maybe getting
20%.  that type of commission means that they are just as Mega as
their name implies.  The industry average is around 16%

Now, if you were to call "X" agency, they will tell you that the price
of this cruise is $1000.  If you call the Mega biggie, they may tell
you the cruise is $900.  If you ask them why theirs is cheaper, they
will give you the same story most agencies give.  They will say they
have better prices because the cruise line gave them better rates. 
That is simply not true.  The cruise line gives them better commission
rates, not better selling rates.

It boils down to if "X" sells the cruise, the agency makes $100.  If
Mega sells the same cruise, they too make $100 but you as a customer
pay $100 less.

All discounts are taken from the travel agent's commission.

Youwill find all of that here:
http://home.g-net.net/~cbrock/MoneyComments.html
"Cruise Planner Discounts, Upgrades & Prepaid Tipping..."
The page is from Candy's Cruise Planner - Money Matters, Fares and
Discounts

You will also find a lot of additional information about upgrades,
cabin grades, single supplements and more.  It may very well be that
just about any question you can think of regarding cruises can be
found in this website.

Search - Google
Terms - discount cruises, discount cruising, purchasing multiple
staterooms

If I may clarify anything before you rate the answer, please ask.

Cheers
digsalot

Clarification of Answer by digsalot-ga on 06 Jan 2003 22:17 PST
Just to be on the safe side, I have done some additional looking
around.  The above is it.  Major cruise lines offer no quantity
purchase discounts whatever.  Every discount you may find is a
deduction from commission.  No alternative is available.  Unless you
buy through an agent who discounts from his/her own commissions,
whether you buy one cabin or a thousand cabins, you will pay the full
asking price.
jmhines123-ga rated this answer:5 out of 5 stars and gave an additional tip of: $25.00

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