Discounting damaging cruise sector

Discounting is having a damaging impact on the cruise sector, according to travel recruiters.

Discounting is having a damaging impact on the cruise sector, according to travel recruiters.

Debbee Dale, director at AA Appointments Group, says: “Discounting has always been a main topic of conversation between cruise travel agents. The independents feel that the multiples drive the prices down by using some of their commission to give additional discount and the independents cant afford to do this. Multiples feel they sell more bulk and therefore should receive better discounts from the cruise lines.”

Ian Brooks, director at Gail Kenny Executive Search, says: “Margins are coming under pressure for cruise retailers as everyone fights for marketshare. However, those cruise specialists with a good database of existing customers have a good business model, as it is the cost of customer acquisition that is causing the strain on finances.

“Cruise lines still have plenty of empty cabins to fill, and those cruise specialists who can deliver for them will be rewarded with marketing funds and financial incentives.”

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