LOS ANGELES -- Princess Cruises will adjust its commission
structure for consortium-member travel agencies next year.
Starting Jan. 1, such agencies will earn the basic negotiated
compensation rate on Princess sales but will earn overrides only
when they have reached certain productivity plateaus. Incentive
payments have been made routinely to all members, even those who
sold virtually no Princess products, on the levels achieved by the
cumulative sales of the group.
"We recognize that not all agents joined their consortium to
sell Princess Cruises," according to Rick James, the line's senior
sales vice president. "By going to this new formula, we hope to
give them all an incentive to do so." The Princess executive said
that rewarding producers for their own efforts, not those of
others, was a perfectly sound business policy.
James said that he had discussed the company's plans with
consortium heads and had encountered no serious opposition. "It's
not as though we are taking a leadership role in operating on this
basis," James said. "Consortia are used to working this way with
many tour operators and even other cruise lines."
James added that, ultimately, the new structure likely would
cost Princess as much as it does now.