FORT LAUDERDALE -- Renaissance Cruises's newly installed co-CEO
says the company "has made mistakes in the past" but will now adopt
"industry-best practices to serve the interests of travel agents"
in the wake of longtime chairman and CEO Ed Rudner's sudden
resignation earlier this week.
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"Several of our former policies were anti-agent and we're sorry
for that," said Frank Del Rio, most recently Renaissance's
executive vice president of marketing. "We plan to make amends."
Del Rio and Richard L. Kirby, former president and COO, were named
co-CEOs on Tuesday [June 13] by Renaissance's board of
directors.
The board also named Fred Kleisner, president and CEO of Wyndham
International and a Renaissance board member, as non-executive
chairman. Rudner remains on the company's board and assumes the
title of honorary chairman and founder.
With Rudner's departure, Renaissance is completely re-vamping
its policies, said Del Rio. Notorious for paying below-market
commissions, the company immediately implemented a 10% standard
commission rate.
Renaissance is also promising to create a commission override
program and modify its restrictive cancellation policies, which
earlier this year led several travel insurance providers to stop
offering policies to Renaissance passengers.
Other changes will include the establishment of an agent
marketing program that will feature group-booking and -discount
plans, plus new co-op advertising and fam-trip programs.
Del Rio acknowledged that Rudner, who he said served as
Renaissance's chief executive since 1991, was responsible for the
policies that over a decade both angered and mystified
cruise-selling agents.
For nearly 10 years, the company used a variety of schemes to
pay below-market commissions to cruise-selling agents, and
consistently used anti-agent language in mail, print and online
promotional materials.
"Ed has been in command as CEO since 1991, but the board agreed
that we had achieved critical milestones in the company," said Del
Rio. Rudner's resignation, he said, means "We want to become
partners with the number one and preferred distribution system in
the travel industry -- agents."
But cruise sellers aren't likely to forgive and forget
Renaissance's aggressive anti-agent behavior quite as easily. "I
wouldn't sell them if they paid 20% commission," said Paul Halem,
owner of Cruise Holidays of Walnut Creek, Calif. "I hope they go
out of business."
Halem said he would never consider booking with Renaissance
"because we can't trust them." He cited the line's direct-booking
campaign, which encouraged consumers to book direct through
Renaissance and "save money" that would normally go to agent
commissions.