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What do ‘cash back’ offers mean for agents?

This initiative, while enticing for travellers, has raised concerns among travel agencies, who have long served as valued partners to Princess Cruises.

Rodney Pattison, Travel Central

Rodney Pattison is a travel industry veteran and owner of Travel Central.
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PRINCESS Cruises, a renowned name in the cruise industry, recently unveiled a new promotion that offers an 8% cash back incentive to customers who book directly with the cruise line. This initiative, while enticing for travellers, has raised concerns among travel agencies, who have long served as valued partners to Princess Cruises. This has led some industry insiders to question whether Princess Cruises is becoming less friendly toward its travel agency partners.

Princess Cruises’ decision to offer cash back to customers booking directly is undoubtedly a compelling offer. It provides an immediate financial incentive for travellers, which may encourage them to bypass travel agencies and book directly with the cruise line.

This move could potentially impact the relationship between Princess Cruises and its travel agency partners.

For many years, travel agencies have played a vital role in promoting and selling Princess Cruises. These agencies possess extensive knowledge of the cruise line’s offerings, helping customers find the perfect cruise experience tailored to their preferences. Moreover, travel agencies often provide personalised service, expert advice, and valuable customer support throughout the booking process. Their efforts have helped Princess Cruises maintain a loyal customer base and reach a wider audience.

Adding to the concerns of travel agencies, Princess Cruises maintains a large team of Cruise Holiday Planners who actively contact customers found in travel agents’ databases. This strategy, while aiming to generate direct bookings, can be viewed as encroaching on the domain of travel agencies. By reaching out to customers directly, Princess Cruises undermine the relationship between travel agents and their clientele, potentially eroding trust and loyalty.

It is essential to note that Princess Cruises has traditionally maintained a strong relationship with travel agencies. Many travel agencies have enjoyed fruitful partnerships with the cruise line, benefiting from commission earnings, co-marketing efforts, and access to exclusive offers. It remains to be seen how this recent development will impact this partnership in the long run.

As the cruise industry continues to evolve, it is vital for all stakeholders to find a balance that ensures mutual benefit and sustains the collaborative spirit that has long characterised this thriving sector.

 

Got an opinion to share? Let us know in up to 400 words via email to [email protected]

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