American Classic Voyages to cut commission
Advertiser Staff
American Classic Voyages, the parent company of Hawai'i's two locally based cruise ships, said yesterday that it is cutting the commission it pays travel agents for the airfare portion of its cruise packages from 10 percent to 5 percent.
Advertiser library photo • Jan. 16, 2001
The Miami-based operator of the Independence and Patriot cruise ships said the change will be effective Oct. 29. Commissions of up to 15 percent on the cruise portion of bookings will remain unchanged.
While cruise ships such as the MS Patriot have gained more visibility in HawaiÎi in recent years, a decision to reduce commissions may squeeze local travel agents.
The decision is one more blow to travel agents hurt by a cut in commissions by major airlines last month. That reduction, which limited the maximum commission on round-trip tickets to $20 instead of the previous $50, led to similar changes at major cruise lines.
Carnival Corp., the world's largest cruise line, Royal Caribbean Cruises and Princess Cruises have all cut their commissions from 10 percent to 5 percent for the air portion of their packages.
Airlines have been trying to cut costs by selling more tickets over the Internet. But the change has angered travel agents.
"The bottom line is this: Travel agents deserve fair compensation for their labors," said Richard Copland, president of the American Society of Travel Agents. "The airlines have declared war against their distribution system, and we intend to make the public aware of this outrage."
Hawai'i travel agents joined a nationwide protest of commission cuts last week.
Travel agents who have not been charging transaction fees are expected to begin doing so. Many agents in Hawai'i charge $15 to $25 in transaction fees, and several agents said that $25 now could become the minimum fee.
