Last week, Carnival Corp.'s U.S. brands (Carnival, Holland America Line, Princess, Cunard, Costa and Seabourn) said they would maintain travel agencies' current commission rates for 2021, whether or not they meet the necessary criteria this year. Carnival Cruise Line will also pay an additional 1% on new bookings made through GoCCL.com and other online booking tools through June 30. News editor Johanna Jainchill spoke with senior vice president of global sales and trade marketing Adolfo Perez about these moves, which Carnival says are part of the line's Onboard With You pledge to help travel advisors navigate the coronavirus crisis.
Adolfo Perez
Q: What are the main ways these moves will help travel advisors right now?
A: Obviously, commission is their source of income. From the beginning, we were protecting commission on those canceled bookings that were fully paid for and canceled by Carnival because of Covid-19. We were the very first cruise line, in 2016, that started paying full commission on the value of future cruise credits (FCCs), something we've continued doing since all this started happening.
We decided with all the North American Carnival Corp. brands to also protect their 2020 commission levels for 2021. There is less opportunity this year to make bookings and hit those targets. It's similar to what an airline has done protecting status for the following year. We thought that was a great idea.
We went a step further, because one of the things that's been really challenging across the industry is the call center, with long hold times. A lot of people are calling, because a lot of people were impacted by the cancellations. We've really been encouraging travel advisors to use GoCCL or whatever online booking tools they're using. So on top of all the other things we're doing, we felt a good way to give them the opportunity to earn more money and to really embrace automation and use those automation tools to make the rebookings or to make new bookings is by offering this 1% bonus.
Q: The Onboard With You pledge says it builds upon Carnival's commitment to protect FCC commissions. How?
A: We encourage travel advisors to work hard to keep guests from canceling and keep the FCCs, because not only are we paying the commission on the original booking, but we're also providing an incentive on the FCC for the client to book with a pretty significant onboard credit. And we pay full commission on the value of the FCC. So if they're successful and get them to keep the FCC and rebook, they've earned commissions on the first booking, and since they worked just as hard or harder sometimes to get the second booking, [on that one, too]. We've been doing that for a long time, since 2016, and it is our way of showing them their work is valuable and they deserve their commission on both of those bookings.
Q: What's your advice to travel advisors about staying connected to clients and the right marketing messages during this time?
A: Now more than ever, it's important to stay in touch with clients. Email is easy and efficient, but even just a check-in call. It's hard right now to be hard selling. You really have to focus on maintaining the relationship and staying in touch with the client and feeling them out and figuring out whether or not it's the right time to say, "Hey, do you want to rebook the FCC now? Or in a few weeks or months, whatever the time frame is you'd like me to connect with you again to do this." Probably the lowest-hanging fruit are those past guests, people who have been on cruises, on Carnival or any other cruise lines. Focus on that right now, because that's where we're going to have the best luck in getting the new bookings. Also, be empathetic with clients. Be very aware of their feelings and understand that everyone processes these things differently and that you have to really listen and empathize with clients versus trying to convince them to book now to get a great deal if they are not ready. It's important to listen and help them get educated.