Regent Seven Seas, Oceania issues anti-discount policy
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Regent Seven Seas Cruises and Oceania Cruises’ owners Prestige Holdings has introduced a new anti-discount policy.
In a letter to travel agents, the companies stated that discounting is “detrimental to our collective economics,” and wanted to step away lower margins for agents and consumer confusion. After discussions for agent partners it found many agencies were reluctant to discount and made its new policy in effect Tuesday.
In a memo to agents on the policy, the company said: “What came through loud and clear was that the agency community is looking for more leadership from principals to preserve pricing integrity and to reduce the advantage some agencies have over others in being able to compete for business via price, once another agency has already invested considerable resources to secure and close a sale”.
“We also learned that it’s not just the mom-and –pop agencies that are adversely impacted by discounting …but that many large agencies are reluctant discounters who would much rather reinvest portion of their commission to actively grow new business, rather than give it away to savvy shoppers”.
The new policy will prohibit agents from advertising or promoting Regent and Oceania cruises at a discount or percentage cut to the cruise lines’ published prices or secured in a contract. There are other stringent rules that form part of the new policy addressing transfer of bookings from one agency to another. The policy states that if reservation is transferred to another travel agency (or is cancelled and rebooked) within 30 days of the reservation date and before final payment, the receiving travel agency will be paid 10% commission, otherwise the originating agent will earn the commission. Policy violations will see commission or marketing funds reduced.
“We realise that there are many different viewpoints on the issue of discounting and that the cruise line’s policy will be met by praise by some and criticism by others. Hopefully, having developed this policy with input from many travel partners, we’ve found an approach that will significantly reduce discounting and protect the economics of those agencies committed to building their business based on the quality of service they provide their customers,” its memo further read.
In another development, Sabre Travel Network confirmed this week Regent Seven Seas Cruises and Oceania Cruises’ inventories will be available from 1 June to all Sabre-connected agencies.
