NEW YORK -- Top executives at two divisions of Travel Services
International, the country's largest cruise retailer, said they
support the parent company's new sales and marketing agreement with
Renaissance Cruises, which is in the midst of a campaign to win the
allegiance of agents.
"The product itself was never a problem," said Robert Falcone,
president of Cruises Inc., a Travel Services division based in
Syracuse, N.Y.
"[Renaissance] operates a category of ships that are otherwise
nonexistent. [It fills] a void. [But] the management decisions made
it impossible to deal with [it]," he said.
Added John Keen, president of Cruise Outlet of the Carolinas, a
Travel Services division based in Charlotte, N.C.: "I was certainly
concerned initially ... we had not supported Renaissance in the
past because of its anti-agent stance. But based on the changes
[the line has] made, I'm willing to forgive and forget," he
said.
"This is not something Travel Services is making us do," Keen
added. "It's a joint effort, something we all wanted to do."
Renaissance inked a preferred sales and marketing agreement with
TSI earlier this month, under which the companies will team in an
"aggressive marketing plan," according to John Bloodworth,
president of Travel Services' cruise division.
The partnership with TSI, which markets cruises nationally under
the Mytravelco.com brand, is widely viewed as a key
development for Renaissance.
The line ran afoul of agents during the past decade by offering
commissions well below market norms and encouraging potential
passengers to "save money" by avoiding agents and booking their
cruises direct.
This year, several travel insurance providers stopped writing
policies on Renaissance vacations because of the line's extremely
restrictive cancellation policies.
Last month, the line announced a series of policy changes
designed to bring Renaissance's policies in line with other major
suppliers.
The partnership with TSI will feature co-op advertising, agent
fam trips, product training and retailer support programs as well
as "a highly visible presence on the Mytravelco Web site," said
Robert Binder, Renaissance's vice president of sales.
Bloodworth added, "We are confident that Renaissance has
demonstrated and is sincere about its willingness to support Travel
Services and the agency community for the long term."
For his part, Falcone of Cruises Inc. said Renaissance had to
make several policy changes before most agents would reconsider
selling the line. "The first two or three steps [Renaissance] took
were good, but there was a feeling that it had to do a little
more."
Said Keen, "[Renaissance has] a good line and gives us another
opportunity to make money." Of the policy changes, he said,
"[Renaissance] needed to do everything it did."
The line's moves to re-establish ties with agents, he said,
proved "that its [direct] business model was doomed to failure. It
sends a message that if you want to be in the cruise market, you
have to work with agents."