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Section 1 of 2
JUNE 18, 2012
THE NATIONAL NEWSPAPER OF THE TRAVEL INDUSTRY
[ CRYSTAL, GAUGUIN, OCEANIA AND REGENT TOUGHEN RULES ]
Luxury cruise lines crack down
on agents who rebate onboard
By Donna Tunney
Crystal Cruises last week became
the latest luxury line to shore up
its anti-rebating efforts, with a
new policy aimed at reducing on-
board solicitation of cruise clients
Rebating is the
practice by which an agent surrenders part
of a commission in order to lower a fare. In
some cases, this is done onboard a cruise
when a rebating agent attempts to lure passengers away from their current agent by undercutting the price of future cruise sailings.
Crystal’s move follows on the heels of
Prestige Cruise Holdings, parent of Regent
Seven Seas Cruises and Oceania Cruises,
adding muscle to its existing anti-rebating
rules in May, and Paul Gauguin Cruises en-
acting a tougher policy earlier this month.
Rebating agents incentivize
their clients to lure other
guests to transfer future
bookings to the rebater.
See REBATES on Page 70
ARC’s directors unanimously approve
By Bill Poling
revised Agent Reporting Agreement
ARC’s board of directors has unanimously
approved wide-ranging revisions to the
Agent Reporting Agreement and Industry
Agents’ Handbook, the key documents codifying the contractual relationship between
most airlines and U.S. agents.
Meeting in Chicago on June 7, the
13-member board also voted to push back
the effective date for the changes, from Jan.
1, 2013, to July 1, 2013, to give airlines, ARC
and agents more time to prepare and reprogram their systems. The documents were unveiled six weeks ago, following their approval
by ARC’s joint airline-agency advisory board.
Lauri Reishus, ARC’s vice president of op-
erations, said the unanimous vote followed a
“solid conversation” that focused on “the im-
plications of implementation.” She said the
discussion focused on the need for IT system
upgrades for airline revenue management
and sales management functions. ARC, too,
will require some system upgrades to accom-
modate the changes, she said.
BY DONNA TUNNEY
As traditional upscale cruise categories blur,
agents find themselves challenged to match
each client to the right experience.